This is BS. A shareholder lawsuit against the CEO/board/executives for investing in the employees in the hope of long term profits would never succeed. The idea of a fiduciary duty doesn't mean that. It means the CEO can't take actions that intentionally hurt the company.

And there are very few large public companies with active enough investors to oust a CEO over this, and even fewer that have both active and activist investors that would be interested in such a thing.