Ask a chief executive if value is important to him or her, and he or she will likely say yes. Ask if employees are important stakeholders in the enterprise, and the answer will almost certainly be yes. Yet, when it comes to incentive compensation, human resources will choose some type of profit sharing. This has Read More Profit or Value: What should we share?
Activist investors have been lauded and criticized by many. The Economist
magazine recently published a special report on these investors, dubbing them the saviors of capitalism. Yet many CEOs dread the moment they will pick up the phone and an activist will be on the other end asking for more share -buybacks, spin-offs of subsidiaries, or disinvestments.
Read More Value Based Management – A Poison Pill against Activist Investors
A common misconception is that “free market” proponents – and their most recognized advocate, Eugene Fama, Nobel Prize laureate – believe that stock markets are perfect. This is false. Markets are not perfect, but as Fama proclaims, they are relatively efficient. Acknowledging that markets are efficient is important: a relatively efficient market can provide information
Read More Strategic Planning Done the Right Way