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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Counter-Intuitive Strategies Can Yield High Margins While Being Attentive To Customers’ Needs

Counter-Intuitive Strategy Costco charges an annual membership fee for the “privilege” of shopping. People pay to spend? That’s crazy, but true! This counter-intuitive strategy makes the bulk of Costco’s profits. Yet, most firms haven’t been able to copy it. Starbucks’ coffee demands a premium. Why? Starbucks doesn’t sell coffee alone, it sells and other products. […]

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