Friday, March 13, 2009

Jack Welch's comments on shareholder value ring true

You can always count on Jack Welch, the author and former GE chairman, to have something interesting to say. Today, his comments on shareholder value are making waves on the Net, ahd his words ring true. Welch maintains that shareholder value is a result of good management, and not a strategy. The notion of managing a corporation for shareholder value is mother to financial engineering. Too many executives expend too many resources in trying to "make numbers" that support a higher share price. Long-term, share prices rise from growth and profits, not accounting practices. Drop the fancy finances and focus on serving customers. That alone creates shareholder value.
Read Welch’s comment’s here:

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