To 1) avoid a stock sell-off, which would depress the stock price and obviously the value of the management’s holdings, or 2) trigger a buying rally, which would drive up the value of the shares.
This seems like bad behavior, but it’s unavoidable given the incentive.
Money – as a primary motivation – seems to undo us all at some point. Why do we hype or exaggerate how easy the business is? So they will buy. And we get money.
Why might we overstate a product’s effects? To make a sale. And we earn money.
All of the exaggerations in business, from little to big are all made for one reason: the money that might come our way if they buy our story.
Yes, people need to make a living doing something. But perhaps we can reorder the incentives.
What if we do and say stuff first because it’s meaningful to us AND others, or because it fulfills us and makes us genuinely happy, and because it’s an extension of ourselves?
Wouldn’t the money then follow because people like us would follow us and want to be around us?
Am I being too idealistic?