Shareholder Value

Dirk Kettlewell has proven abilities in the creation of shareholder value. Shareholder value is a term used in business and can be phrased as a shareholder value maximization or as the shareholder value model. This implies that the ultimate measure of a company’s success is the extent to which it enriches shareholders. The term became popular during the 1980’s, and is particularly associated with the former CEO of General Electric, Jack Welch. Shareholder value can refer to the market capitalization of a company, the concept that the primary goal of a company is to increase the wealth of its shareholders (owners) by paying dividends and causing the stock price to increase, planned actions by management and the returns to shareholders should outperform certain benchmarks such as the cost of capital concept. The shareholders money should be used to earn a higher return than they could earn themselves by investing in other assets having the same amount of risk.

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