LEADERSHIP | SHAREHOLDER VALUE

Craig Bouchard Founder & Executive Chairman , Ecolution kWh , LLC

Or did it ? Has the relentless pursuit of shareholder value at all costs gone out of fashion in the face of sustainability and societal pressures ? And what difference does it make if you are a company based in Denver , Dusseldorf , Dubai or New Delhi ?

One fact is certain – you cannot ignore the importance of shareholder value in this region .

According to data from the World Bank , the market capitalisation of domestic listed companies in the US is US $ 40.72 trillion , with Canada delivering US $ 2.64 trillion .

That makes the US by far the largest single nation when it comes to listed company value , more than three times China in second place globally with US $ 12.21 trillion . Canada ’ s listed companies are worth more than Germany ( US $ 2.28 trillion ) and India ( US $ 2.6 trillion ).

This highlights disparity around the world , with some countries having more of a focus on government- or family-owned large businesses , making the concept of shareholder value redundant .

Shareholder value as important today as ever When it comes to shareholder value , Craig Bouchard wrote the book – literally . His New York Times Best Seller ‘ The Caterpillar Way : Lessons in Leadership , Growth and Shareholder Value ’ may have been written a decade ago , but “ shareholder value will always be considered relevant , especially in our highly competitive investment arena ,” the Founder and Executive Chairman of Ecolution kWh tells Business Chief .

“ Exceeding shareholder expectations is the single most important performance indicator to attracting and retaining professional investors .”

Barbara Spitzer is Founder and Chief Executive Officer at Two Rivers Partners , and a former senior executive at Accenture , and she agrees with Bouchard – to a degree .

“ Shareholder value is always relevant , but with a few added features ,” says Spitzer . “ While shareholder value remains core , CEOs must balance it with other stakeholders ’ interests ,

42 September 2023