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A CEO's job is to increase shareholder value. End of story. This means increasing the stock price. So yes, I do believe that this statement is absolutely tru
by steven2012 13y ago
A CEO's job is to increase shareholder value. End of story.
This means increasing the stock price. So yes, I do believe that this statement is absolutely true. The CEO needs to figure out a way to increase shareholder value, whether they are Yahoo, or Washington Post, or New York Times, or Groupon. They are not supposed to sit around and maintain dividends. Whether it's breaking into new businesses, selling their current underperforming businesses, etc, that is why they are CEO, to think of new ways to make money and increase stock price. Not to sit on their laurels and collect their paycheck.
3 years is MORE than enough time for any CEO to execute a strategy that increases shareholder value. If they can't, then they should be fired.
- rgbrenner 13y ago"3 years is MORE than enough time" So you're saying there were no CEOs at the end of 2008 that thought that even with all of the work they were doing to improve their company, that the recession would have net negative effect on their business. Do you really believe that? And as this applies to Yahoo... we have no idea how bullish Mayer is on Yahoo.. maybe she thinks the company is going to grow very rapidly over the next few years, and doesnt want to give up a single share. If she is MORE bullish on Yahoo than the market, then Mayer would have considered Tumblr's demand for X number of shares unreasonable.
- deleted 13y ago[deleted]
- ISL 13y agoA CEO's job is to do whatever it is that shareholders hired her/him to do. A CEO that can preserve value and maintain dividends is a good one. Who wouldn't want to invest in a stable and profitable company?
- 6d0debc071 13y agoIf you knew that stock was never going to pay dividends, then why would anyone ever want it? :/
- mortehu 13y agoFor a small enough company; because it might be bought. For example, Activision Blizzard might be bought fully by Vivendi.