Shareholder Value is the End

Shareholder Value Perspective
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Jean-Philippe THOME
CEO, France

Shareholder Value is the End

The Shareholder value principle is nothing else than the beginning of the end for a company. I've been facing years ago with a situation where I was involved in advanced project management when The CEO retired and a new one was nominated. The formal one was a man of the future, with a clear strategic vision and a clear roadmap to deploy. The new one had another mission : increase shareholder value. All advanced researches were cut to derive the so called "short term benefits".
Two years later, the company was facing serious difficulties and the new CEO was fired by the Administration Board for lack of results!
Was he really the only one to be guilty ?!?!

  Philip
 

Shareholder value thinking is NOT short-term oriented

I believe you are making at least 2 thinking errors, Jean-Philippe. The first one is that you motivate an extremely broad statement with just one example. The second mistake is actually made by many people and popular journalists: you assume that shareholder value thinking is equal to or correlated with short term orientation. Of course there are bad exceptions, but in general there is no such relation. If you consider that most shares in the world are held by large institutions with multi-year investment strategies you immediately see why.

  Nilesh Borde
 

Shareholder Value Creation

SVC is indeed not a short term phenomenon. Compani (...)

  Vipin Pillai
Manager, United Kingdom
 

Shareholder Value Must Flow Down as a Goal

What Jean-Philippe has highlighted is a classical (...)

  Jean-Philippe THOME
CEO, France
 

Shareholder Value Thinking:

I come back some years later to confirm to Philip (...)

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