The Fiduciary Role of the Chief Executive

“Consider the chief executive in a market economy. Like a lawyer, a chief executive is a fiduciary, holding a legal and ethical relationship of trust between himself and his beneficiaries. So a chief executive has a fiduciary duty to shareholders and acts as a trustee for their best (financial) interests. In carrying out his duties, he has the same obligations of full disclosure and fairness to them as a lawyer has towards his clients. Now a chief executive does not justify his salary on an hourly basis. Instead, he is judged on the basis of the financial impact of his activities in, and risk-taking for, his corporation. How he spends his time (not illegally, of course) does not matter as long as he delivers the goods.” – Andy Ho, 2014


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