Shareholder wealth refers to the value or financial benefit that the owners of a company, known as shareholders, receive from their investments in the company. It is the increase in the price of the company's shares and the dividends or profits that shareholders receive, which contribute to their overall wealth.
Full definition
Contrary to what I expected to find, these companies that are currently priced at levels making liquidation seem the most profitable option have in fact been steadily
creating shareholder wealth.
For clients who desire both current income and opportunity for growth, our core portfolio focuses on the strongest companies which are committed to
increasing shareholder wealth through the growth of dividends over time.
A spin off avoided taxes on the corporate and individual level, which obviously makes a huge difference in after -
tax shareholder wealth.
A more modern, critical view is to say that the purpose of a corporation is something more than the pursuit
of shareholder wealth.
This is where the theory and reality diverge: The majority of companies that don't pay out a significant portion of cash flows in dividends (or stock buybacks, though I place more value on dividends, as stock buybacks could be postponed) more often than not end up
destroying shareholder wealth in empire - building acquisitions or marginal capital investments (if they had better investments to begin with they would spend cash right away).
This is because when debt - to - equity level increases, the more expensive source of finance (i.e. equity) is replaced by the cheaper alternative (i.e. debt) leading to an increase
in shareholder wealth.
If instead I spend my time and my energy to find CSR initiatives it diverts my time and my energy to something else, not focusing on
building shareholder wealth.»
Most companies have favored short -
term shareholder wealth (in the form of dividends, share buybacks, and M&A activity) over longer - term capital expenditures.
Maintaining a dividend forces discipline on managements that are prone
waste shareholder wealth on nonsensical mergers and «empire building.»
RIT Capital Partners plc is an Investment Trust chaired by Lord Rothschild, which aims to protect and
enhance shareholders wealth over the long term.
The killer combination is growing revenues, rising book value, combined ratios under 100 %, and management that is committed to
returning shareholder wealth through buybacks and dividends.
Given the slope
of shareholder wealth destruction and given the inconsistency of information delivered to us by sundry directors and officers of our Company I would like to suggest that you deliver a special dividend of $ 1.20 per share to its owners, the shareholders.
Larger, established companies tend to issue regular dividends as they seek to
maximize shareholder wealth in ways aside from supernormal growth.
Not that Australian management teams aren't focused on
creating shareholder wealth — because most certainly are — but they currently scoop off a large amount of cream for themselves in the process.
But if those buybacks come at the expense of innovation, short - term gains
in shareholder wealth could harm long - term competitiveness.
«There is no legal document anywhere that the duty of the corporation is to maximize
shareholder wealth.
Looking out on the next decade, Jobs may well be asking himself a variation of that very question: After creating more than $ 150 billion in
shareholder wealth, transforming movies, telecom, music, and computing (and profoundly influencing the worlds of retail and design), what should Steve Jobs do next?
Rakuten's push into mobile under boss Hiroshi Mikitani will destroy
shareholder wealth and shows up another supine Japanese board, argues investor Kisalaya Singh.
It had lost 90 percent of
its shareholders wealth.
A: Our model evaluates five indicators of
shareholder wealth and business performance: total shareholder return, earnings per share growth, change in operating cash flow, return on equity and return on assets.
«If protecting US intellectual property is the ultimate goal here, I'm not sure how destroying
shareholder wealth, damaging CEO confidence and making the American farmer the main sacrificial lamb here after [six] years of pain on the farm is going to get us there,» Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in a note Wednesday.
Assuming the stock price goes down exactly what is paid out per share
the shareholders wealth doesn't change.
Now, however, Enron is infamous for its massive accounting fraud, catastrophic failure, and immense destruction of
shareholder wealth.
Over time, companies that retain earnings in cash merely sit on an asset that investors would rather have in their own pockets, safe from overactive managers and poor stewards of
shareholder wealth.
Effective capital allocators will utilize a combination of these strategies to create
shareholder wealth.
Richard Fuld (Lehman Brothers), Alan Schwartz (Bear Stearns) & Kerry Killinger (Washington Mutual) will be dressing up as The Three Amigos as they try to flee the US into Mexico with their millions of executive compensation bonuses for ruining their firms and billions of
shareholder wealth.
With Lay dying an innocent man, at least legally speaking, and his death putting the civil claims in doubt, it's clear there will be no closure on one of America's biggest corporate frauds which cost 4000 jobs and billions of dollars in
shareholder wealth, savings and retirement incomes.
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.
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.
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.
Senior leadership role providing outstanding customer service, P&L success and
shareholder wealth.
In those cases, the primary consideration is what the transaction will mean for owner or
shareholder wealth.