Definition
The value delivered to company owners through dividends, stock price appreciation, and overall business performance. The metric that justifies every controversial business decision since the 1980s.
Example Usage
Management's primary responsibility is maximizing shareholder value through operational efficiency.
Origin
Corporate finance concept popularized in the 1980s, particularly through Jack Welch's leadership at General Electric
Fun Fact
Jack Welch, who championed shareholder value for decades, later called it 'the dumbest idea in the world' in 2009, though by then the phrase was irreversibly embedded in business culture.
Source: Corporate finance and governance terminology
Related Terms
Translate This Term
See “shareholder value” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator