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