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Although Mr Murakami plainly went too far, he helped make the case for a greater emphasis on shareholder returns.
He says low interest rates, restructuring and new emphasis on shareholder value and technology will bolster European financials.
While investor activism is shifting the center of gravity toward American-style capitalism and its emphasis on shareholder value, the tug of European-style family capitalism lingers.
Other academics, such as Roger Martin, the highly regarded dean of the Rotman School of Management at the University of Toronto, are critical of the emphasis on shareholder value.
That has changed in recent decades, because the boom in executive pay, and in startups generally, has made it easier for founders and C.E.O.s to become enormously rich, and because the relentless emphasis on shareholder value has taught us that the market value of a company is its most salient attribute.
The emphasis on shareholder value must shift to the greatest source of this value - positive employee and customer relationships.
Similar(52)
Much of Wall Street interprets Mr. Stumpf's emphasis on shareholder-friendliness to mean he has no intention of raising new common equity, which might be dilutive.
Indeed, despite the increased emphasis on shareholders the past few decades, companies haven't gotten noticeably better.
This approach would not only revolutionize the way corporations think about employees, but also help balance the overwhelming emphasis on shareholders that has de-humanized so many corporations.
Emphasis on could.
Private equity revolutionized American business, demanding efficiencies (which can mean layoffs) and helping place much more emphasis on increasing shareholder value.
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Justyna Jupowicz-Kozak
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