Shareholder Value is the End

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Shareholder Value Perspective > Forum > Shareholder Value is the End

Shareholder Value is the End
Jean-Philippe THOME, CEO, France, Member
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 ?!?! (...) Read more? Sign up for free

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  Shareholder value thinking is NOT short-term oriented
Philip
  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.

  Shareholder Value Creation
Nilesh Borde
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  Shareholder Value Must Flow Down as a Goal
Vipin Pillai, Manager, United Kingdom, Member
  (...)

  Shareholder Value Thinking:
Jean-Philippe THOME, CEO, France, Member
  (...)

   
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Shareholder Value Perspective
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Shareholder Value is the End


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