To what extent should boards focus on shareholders To what extent should they focus on other stakeholders in society at large A lot of people are arguing about this now and they use different words that aren t always precise. One issue that Rakesh Khurana and I argue is that you can t reward senior management for something over which they have limit control and shareholder value is not something that most managers can totally control.
The economic performance of
The company overall offers a clearer view but most compensation plans don t take that into consideration. The bottom line is that you and I can talk about shareholder value not ing the primary consideration—but if you re a large investor in a Albania WhatsApp Number List company you might think that s the only thing that matters. No one can say they have complete access to the truth—everyone has their point of view. It s not unlike what goes on in Congress. It boils down to a set of liefs. I prefer a more balanc view of the role of the corporation in society. If the only reason a corporation exists is to make money for its founders and shareholders then the other people engag in its work may not getting commensurate rewards for the efforts they re putting in.
One of the things we re trying
To reflect in the book is that there s a healthy skirmish going on among directors themselves as to the appropriate way to think about this. Q ll turn your Macedonia Phone Number List attention next A We did a diagnosis in our chapter about compensation but I think there s much more that can said about what s wrong with it and how to fix it. My research associate and I also want to get a questionnaire into the hands of practicing directors to see how they re thinking about their jobs and the issues they face.
