1. required, while seeking profit, to assure that their work in both these fields shall contribute to economic stability, to maintaining continuous and adequate supply, to providing continuity and stability of employment, and to providing technical advance in their industry. Seeking these results modifies, pro tanto, the old theory that the whole duty of management was satisfied by maximizing profits. Put differently, the right to make and retain profits is conditioned on working toward and, let us hope, attaining these ends;See Adolf;the American system, exists and derives its right to exist under, and only under, a tacit social contract,1944
2. T]he pay increase was modest. The raises were for 5 percent to 8 percent for flight attendants and pilots respectively, and AAL offered the adjustment because salary levels had fallen behind their peers. Had they not raised salaries, AAL executives would likely have faced turnover costs. Plus, the salary increases were an affordable commitment, given the company's budget. The raises, therefore, entail a mere 0.57 percent of AAL's operating expenses, which reached $40.18 billion in 2016. Should Wall Street analysts and investors put maximizing profits above keeping a commitment to the working people that power the enterprise?");Berle would find it astonishing to see stock market analysts react to American Airlines' decision to give its employees a raise to close the compensation gap that existed between it and its key competitors. Yglesias, supra note 122,2017
3. The Real Effects of Hedge Fund Activism: Productivity, Asset Allocation, and Labor Outcomes, 28 REV. FIN. STUD. 2723, 2753 (2015) (finding that on average, workers at target firms experience stagnant wages and increased productivity, resulting in reduced productivity-adjusted wages); and citing Lawrence Mishel et al., Wage Stagnation in Nine Charts;E G Leo;Who Bleeds When the Wolves Bite? A Flesh-and-Blood Perspective on Hedge Fund Activism and Our Strange Corporate Governance System 126,2015
4. S]ome evidence suggests that shareholder pressure, organized and directed by activist hedge funds, may cause the corporation to act in a more risk-accepting manner and contrary to broadly accepted public policies;John C Coffee;Activist Directors and Agency Costs: What Happens When an Activist Director Goes on the Board? 9-10 & n.21 (Columbia Bus. Sch,2018