The myth of shareholder value

The long standing fixation with creating shareholder value still persists just below the surface despite the current crisis. ‘The Rise and Fall of Management’ flags up the much broader responsibilities that directors have legally shouldered for the past 150 years, but if the City and top directors have their way, when the current crisis is over, it’ll be ‘back to business as usual’. Those directors will still be aligned with shareholders rather than customers and employees, and paying themselves extreme amounts of money irrespective of either short or long term performance. The bonus culture is regaining momentum and no matter how much the media and politicians berate the greed of City martinets, until action is taken to restrict or tax unwarranted bonuses, they will continue to be taken.

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