shareholder value

noun

Meaning

The financial return generated for the owners of a corporation, typically measured by the increase in stock price and the payment of dividends.

Examples

  • Many critics argue that an obsessive focus on shareholder value can lead companies to neglect long-term innovation.
  • The board of directors is legally obligated to prioritize the creation of shareholder value above other corporate interests.

Synonyms: profitability, returns, market capitalization, fiduciary duty