Shareholder primacy prioritizes maximizing shareholder returns above all other corporate interests. Companies use this principle to guide decisions on dividends, stock buybacks, and executive strategies, often at the expense of stakeholders like employees or communities. Primarily, shareholders—especially institutional investors—benefit from increased profits and share value, while long-term business sustainability may suffer.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends