Comments on: The myth of shareholder value http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/ Perspectives on management and governance Tue, 09 Apr 2013 18:25:01 +0100 http://wordpress.org/?v=2.8.6 hourly 1 By: Gordon Pearson http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5870 Gordon Pearson Tue, 18 Dec 2012 18:09:35 +0000 http://www.management-riseandfall.info/?p=132#comment-5870 Sad reflection on management (copmpare with Mike Smith's version), but in the recent crunch many managements have played this self interest maximising role, and idnored heir real responsibilities Sad reflection on management (copmpare with Mike Smith’s version), but in the recent crunch many managements have played this self interest maximising role, and idnored heir real responsibilities

]]> By: AHodge http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5869 AHodge Tue, 18 Dec 2012 14:43:59 +0000 http://www.management-riseandfall.info/?p=132#comment-5869 Long term steps to boost earnings power are good. Meaning sustainable real operating earings. Most other stock price boosting is bubble blowing - and doesn't benefit anyone long term over the cycle. Except management, who can play games and hype their bonuses options value etc, and nimble traders ready to get out. Long term steps to boost earnings power are good. Meaning sustainable real operating earings. Most other stock price boosting is bubble blowing – and doesn’t benefit anyone long term over the cycle. Except management, who can play games and hype their bonuses options value etc, and nimble traders ready to get out.

]]> By: Gordon Pearson http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5866 Gordon Pearson Tue, 18 Dec 2012 11:17:30 +0000 http://www.management-riseandfall.info/?p=132#comment-5866 As Mike Smith says owners, by which I assume he means shareholders, would only invest if they earn a sufficient return. His comment re management's role could have been taken from The Rise and Fall of Management - "The management issue in the 21st century is how to recruit, retain, support and develop highly skilled and educated people ...." People need to be the focus. The focus on shareholder value has led to financial predation on real firms in the real economy as indicated in several postings on this site. As Mike Smith says owners, by which I assume he means shareholders, would only invest if they earn a sufficient return. His comment re management’s role could have been taken from The Rise and Fall of Management – “The management issue in the 21st century is how to recruit, retain, support and develop highly skilled and educated people ….” People need to be the focus. The focus on shareholder value has led to financial predation on real firms in the real economy as indicated in several postings on this site.

]]> By: Mike Smith http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5863 Mike Smith Tue, 18 Dec 2012 05:39:27 +0000 http://www.management-riseandfall.info/?p=132#comment-5863 Are the owners of the firm entitled to some profit? Why else would they invest? The author simply doesn't understand that a superior company has carefully selected the best employees, rewards them in both long and short terms and manages to deliver a superior product or service as a result of the combined efforts of a motivated workforce. I've been there and it does work. It fails when managers operate in theor own interests before that of their employees and customers. It isn't rocket science and an MBA is a severe handicap to success. Are the owners of the firm entitled to some profit? Why else would they invest? The author simply doesn’t understand that a superior company has carefully selected the best employees, rewards them in both long and short terms and manages to deliver a superior product or service as a result of the combined efforts of a motivated workforce.

I’ve been there and it does work. It fails when managers operate in theor own interests before that of their employees and customers.

It isn’t rocket science and an MBA is a severe handicap to success.

]]> By: da_mnm http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5862 da_mnm Tue, 18 Dec 2012 03:02:55 +0000 http://www.management-riseandfall.info/?p=132#comment-5862 It is only natural.. If human being were left to put down rules for them selves, they will surely lead them selves into injustice.. Divine Guidance is there, we just need to find it, understand it and practice it.. It is only natural.. If human being were left to put down rules for them selves, they will surely lead them selves into injustice.. Divine Guidance is there, we just need to find it, understand it and practice it..

]]> By: 10 Monday PM Reads | The Big Picture http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5861 10 Monday PM Reads | The Big Picture Mon, 17 Dec 2012 21:30:34 +0000 http://www.management-riseandfall.info/?p=132#comment-5861 [...] (John Kay) • Gold-hunting in a frugal age (The Economist) • The myth of shareholder value (Gordon Pearson) see also Down With Shareholder Value (NYT) • Why these business owners are hiring (CNN Money) [...] [...] (John Kay) • Gold-hunting in a frugal age (The Economist) • The myth of shareholder value (Gordon Pearson) see also Down With Shareholder Value (NYT) • Why these business owners are hiring (CNN Money) [...]

]]> By: Gordon Pearson http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-5 Gordon Pearson Sat, 17 Oct 2009 09:39:06 +0000 http://www.management-riseandfall.info/?p=132#comment-5 Agreed. Sufficient statute is already in place to do the job. The 2006 Companies Act is habitually ignored. The legal duty of auditors to ensure accounts present a true and fair picture is ignored - balance sheets are prepared deliberately to hide more information than they present and auditors are content to accept it and still certify the accounts as true and fair. The law is OK, enforcement is nowhere. Agreed. Sufficient statute is already in place to do the job. The 2006 Companies Act is habitually ignored. The legal duty of auditors to ensure accounts present a true and fair picture is ignored – balance sheets are prepared deliberately to hide more information than they present and auditors are content to accept it and still certify the accounts as true and fair. The law is OK, enforcement is nowhere.

]]> By: Martin Parker http://www.gordonpearson.co.uk/30/the-myth-of-shareholder-value/comment-page-1/#comment-4 Martin Parker Thu, 15 Oct 2009 21:00:48 +0000 http://www.management-riseandfall.info/?p=132#comment-4 Rather than all this nonsense about capitalism mending itself, isn't it about time we stopped capitalists from doing what benefits them? Their interests are not the same as mine, as ours, and the sooner this is recognised and enshrined in statute, the better. Rather than all this nonsense about capitalism mending itself, isn’t it about time we stopped capitalists from doing what benefits them? Their interests are not the same as mine, as ours, and the sooner this is recognised and enshrined in statute, the better.

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