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> Share Holder value is its primary purpose No, it isn't. Corporations are given a public charter which declares its purpose. Increasing share-holder value i

> Share Holder value is its primary purpose No, it isn't. Corporations are given a public charter which declares its purpose. Increasing share-holder value is a nice side-effect at most.

mythz 11y ago
> Increasing share-holder value is a nice side-effect at most. Rubbish, the board works for its shareholders who wants ROI on their investment. Who do you think is forcing their expenses / 15% workforce cut? and putting pressure on Marissa to waste her time/focus on re-structuring Yahoo to maximize their Alibaba investment? Shareholders are the primary benefactors.
- gerbilly 11y ago
  > Rubbish, the board works for its shareholders who wants ROI on their investment. Sure, but honestly most shareholders would prefer not to take a share of the profits. Dividends are so passé. Today's modern investor wants growth, and the easiest way to get growth, without all the hard work , is to find another investor willing to believe in your portrayal of the value of the stock you hold[1], and to convince them to buy it from you. [1] https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory
hluska 11y ago
"The Board's goals are generally to build long-term value for the Company's stockholders and to assure the vitality of the Company for its customers, employees and the other individuals and organizations that depend on the Company." Source - Yahoo Corporate Governance Guidelines - https://investor.yahoo.net/documentdisplay.cfm?DocumentID=11713 https://investor.yahoo.net/documentdisplay.cfm?DocumentID=11...
gerbilly 11y ago
Shareholder primacy is a recent development in capitalism , and a negative one in my opinion. [1] Since we've chosen to give so much power to corporations over areas of our lives, they need to be good citizens more than ever. It's quaint, but corporations are granted a charter by the state, and the people have delegated that power to the state. So it's the people who decided what a corporation is and its rights and responsibilities. Now of course we've been lulled into thinking it has to be the way it is now, and that the current state of affairs is 'natural', but it doesn't have to stay that way. Maybe as more and more industries are disrupted and automated away and people lose jobs, we might be forced to rethink the current arrangement. [1]: http://www.europeanfinancialreview.com/?p=883 http://www.europeanfinancialreview.com/?p=883
dragonwriter 11y ago
> Corporations are given a public charter which declares its purpose. Which, for virtually (but not quite entirely) all corporations that aren't nonprofits, is basically "do anything legal", or "do anything legal to advance the interests of the shareholders." E.g., for Yahoo!, its purpose is "to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware". [0] If corporate law required purposes in charters/certificates of incorporation to be meaningful and specific, and charters/certificates were denied or revoked that failed to be, the purpose in a charter might actually be worth referring to. [0] http://files.shareholder.com/downloads/YHOO/1450374771x0x28517/FCD100A1-B2A7-4F03-8B1C-A57489A26225/CG_Incorporation.pdf http://files.shareholder.com/downloads/YHOO/1450374771x0x285...
deleted 11y ago
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> Share Holder value is its primary purpose No, it isn't. Corporations are given a public charter which declares its purpose. Increasing share-holder value is a nice side-effect at most.

mythz 11y ago

> Increasing share-holder value is a nice side-effect at most. Rubbish, the board works for its shareholders who wants ROI on their investment. Who do you think is forcing their expenses / 15% workforce cut? and putting pressure on Marissa to waste her time/focus on re-structuring Yahoo to maximize their Alibaba investment? Shareholders are the primary benefactors.

gerbilly 11y ago
> Rubbish, the board works for its shareholders who wants ROI on their investment. Sure, but honestly most shareholders would prefer not to take a share of the profits. Dividends are so passé. Today's modern investor wants growth, and the easiest way to get growth, without all the hard work , is to find another investor willing to believe in your portrayal of the value of the stock you hold[1], and to convince them to buy it from you. [1] https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory

hluska 11y ago

"The Board's goals are generally to build long-term value for the Company's stockholders and to assure the vitality of the Company for its customers, employees and the other individuals and organizations that depend on the Company." Source - Yahoo Corporate Governance Guidelines - https://investor.yahoo.net/documentdisplay.cfm?DocumentID=11713 https://investor.yahoo.net/documentdisplay.cfm?DocumentID=11...

gerbilly 11y ago

Shareholder primacy is a recent development in capitalism , and a negative one in my opinion. [1] Since we've chosen to give so much power to corporations over areas of our lives, they need to be good citizens more than ever. It's quaint, but corporations are granted a charter by the state, and the people have delegated that power to the state. So it's the people who decided what a corporation is and its rights and responsibilities. Now of course we've been lulled into thinking it has to be the way it is now, and that the current state of affairs is 'natural', but it doesn't have to stay that way. Maybe as more and more industries are disrupted and automated away and people lose jobs, we might be forced to rethink the current arrangement. [1]: http://www.europeanfinancialreview.com/?p=883 http://www.europeanfinancialreview.com/?p=883

dragonwriter 11y ago

> Corporations are given a public charter which declares its purpose. Which, for virtually (but not quite entirely) all corporations that aren't nonprofits, is basically "do anything legal", or "do anything legal to advance the interests of the shareholders." E.g., for Yahoo!, its purpose is "to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware". [0] If corporate law required purposes in charters/certificates of incorporation to be meaningful and specific, and charters/certificates were denied or revoked that failed to be, the purpose in a charter might actually be worth referring to. [0] http://files.shareholder.com/downloads/YHOO/1450374771x0x28517/FCD100A1-B2A7-4F03-8B1C-A57489A26225/CG_Incorporation.pdf http://files.shareholder.com/downloads/YHOO/1450374771x0x285...

deleted 11y ago

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