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Maximizing shareholder value concentrates returns in the hands of shareholders over employees. This has a significant distributional impact as for most income f
by laurencerowe 9y ago
Maximizing shareholder value concentrates returns in the hands of shareholders over employees. This has a significant distributional impact as for most income from employment dwarfs income from investments.
- mjfl 9y agoagain, why do you treat employees as a distinct group from shareholders? At many companies, employees are the shareholders.
- FridgeSeal 9y agoShareholders in that they have some shares, but not nearly on the same scale: shareholders have far more available money to invest and as such, investments pay off in a far larger way than for your average employee.
- laurencerowe 9y agoBecause employees and shareholders have distinct and sometimes opposing interests. Increasing pay for employees reduces the profits available for distribution to shareholders.