Why company owners might be the worst bosses? Economist explains

A provocative statement by renowned economist Ha-Joon Chang is stirring up a heated debate on corporate governance. The South Korean economist, known for challenging conventional capitalist wisdom, has declared that companies should not be run in the interest of their owners — and the reason might surprise you.

In a 13-year-old video whose clip recently resurfaced on social media, Chang dismantled the widely accepted belief that prioritizing shareholder profits leads to better business outcomes. Instead, he argues that this model is a ticking time bomb for both companies and the broader economy.

Why Owners Might Be the Worst Bosses

According to Chang, shareholders — who are often considered the ultimate decision-makers of a company — are paradoxically the least invested in its long-term future.


"Shareholders can sell their shares at the click of a mouse," Chang explains. "They have no incentive to wait for long-term results."

In contrast, employees, suppliers, local communities, and customers have far more at stake in a company's long-term health but often have little to no influence on major business decisions.

Profit Now, Crisis Later

The economist pointed out how modern corporations prioritize short-term gains over long-term stability. Companies are increasingly hoarding profits instead of reinvesting in research, employee training, or infrastructure.

In the 1970s, American corporations distributed about 35-45% of their profits as dividends. Today, that figure has skyrocketed to over 60% — leaving far less capital for innovation or growth.

Even more alarming, share buybacks — where companies purchase their own stock to boost share prices — have ballooned from 5% of profits in the 1980s to more than 100% in some cases today.

"You are not using any of this profit for long-term productivity development," Chang said. "You are just keeping shareholders happy."

Who Should Call the Shots?

Chang's solution? Companies should be run with all stakeholders in mind — not just those holding stock certificates. That means giving employees, suppliers, and local communities a voice in decision-making, much like the cooperative models seen in countries like Germany and Sweden.

By shifting the balance of power away from shareholders, companies could prioritize sustainable growth over short-term profits.

A Radical or Revolutionary Idea?

While Chang's views may sound radical in today's finance-driven economy, they're gaining traction among critics of corporate greed. The viral video has sparked a wave of discussion online, with many questioning whether the shareholder-first model is truly serving businesses — or simply lining the pockets of the few.

As corporations grapple with rising inequality, climate change, and stagnant wages, one question remains:

Is it time to rethink who really owns the future of business?

Whether you're a CEO, employee, or investor — this debate is one that could reshape the future of capitalism as we know it.