Instead of being viewed as long - term economic stewards, he said, managers came to be seen as mainly as the agents of the owners — the shareholders — and responsible for
maximizing shareholder wealth.
Corporate directors can be (and often are) sued for exploring a focus or expending resources that is in any way inconsistent with
maximizing shareholder wealth.
«There is no legal document anywhere that the duty of the corporation is to
maximize shareholder wealth.
Larger, established companies tend to issue regular dividends as they seek to
maximize shareholder wealth in ways aside from supernormal growth.
In her book, Stout argued that the widely accepted norm that corporations are owned by shareholders and exist to
maximize shareholder wealth is a destructive myth.
Not exact matches
Rather than focusing on pledges, businesses should make sure that managers comply with their fiduciary and ethical responsibility to
maximize the
wealth of the people who pay their salaries — i.e., the
shareholders.
If MBA students insist on taking an oath that promotes
shareholder - friendly corporate governance, I would propose the following: «I pledge to
maximize the
wealth of the people who pay my salary — i.e., the
shareholders, unless the
shareholders tell me in advance that they want me to do something else.
In many countries, board members and, as a consequence, managers have a fiduciary duty to
maximize the
wealth of
shareholders.
This is why, as a professional investor who is charged with looking after my
shareholders» and clients»
wealth and savings, I find it distressing when corporate boards and managements get distracted from their role of
maximizing shareholder value.