Maximizing Shareholder Value Works When CEOs Focus On Enterprise Value Not Bonuses

T he Business Round Table (BRT) had an aha moment and decided maximizing shareholder value  is not a corporation’s sole purpose. That metrics from the 1980s is wrong, it said. The BRT is late getting to this undeniable conclusion. It is indisputable that this profit focus fed CEOs’ greed nature and primed the Great Recession. CEOs […]

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Facebook’s $5 Billion Fine Encourages Executive Misdeeds

Facebook’s $5 billion fine by the Federal Trade Commission (FTC) for serial privacy abuses doesn’t go far enough. After the market received news of the fine, Facebook’s market value spiked $10 billion, and Chief Executive Officer (CEO) Mark Zuckerberg’s net worth rose $1 billion. Facebook’s leaders rejoiced. Why not? Facebook did not agree to wrongdoing, and the […]

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Budgeting Like Dieting Doesn’t Work, Here is an Alternative

Budgeting, like dieting, doesn’t work because folks don’t embed it in their lifestyles. It’s a chore a finance person recommends. Can we achieve budgeting’s goals a better way? People save leftovers after spending. Is there another path? Take Warren Buffett’s advice, “Do not save what is left after spending; instead, spend what is left after saving.” The […]

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