A usual conflict between the long run vs short run, and one which probably doesn't have a satisfactory solution, as long as your stock trades on Wall Street.
Tuesday, December 27, 2011
The Dumbest Idea In The World: Maximizing Shareholder Value
Steve Denning writes an insightful article about the conflict that CEOs of publicly traded companies usually face: focus on customers vs focus on shareholders. Focusing on customers is probably the adequate choice for ensuring the company stays in business in the long run, but focusing on shareholders increases the odds that the CEO maintains his job, as the usual performance measurement is based on stock price.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment