EDITORIAL: ARC management fee review long overdue
Investment house’s proposal is an acknowledgment that shareholder and management interests are not aligned
With ESG coming of age, it is tempting to think shareholder value maximisation theory — the idea that the number one priority for boards and executive committee members is to maximise the share price — has taken a back seat. It has not. That’s not necessarily a bad thing.
For one thing, the growing popularity of ESG as one of the major policy issues for the investment community has rightly forced boards to take into account the interests of staff, customers, suppliers and the environment when pursuing their primary shareholder value-creation goal that traces its roots to the thinking of late free market economist Milton Friedman. ..
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