This week we started with an intro to financial management and learned that the goal of firm (and its managers) is to maximize shareholder wealth

This week we started with an intro to financial management and learned that the goal of firm (and its managers) is to maximize shareholder wealth. This is a long-term goal, achieved by maximizing the long-term share price. Financial maneuvering to maximize quarterly profits or buying back stock simply to increase the firm’s earnings per share are not long-term strategies. The point is that by maximizing shareholder wealth (long-term share price), the firm’s customers, suppliers, and employees should also benefit. Bottom line, all “stakeholders” should benefit from shareholder wealth maximization.

The attached WSJ article discusses labor/employee issues at Starbuck’s and how this can relate to board of director issues as well. A key quote from the article: “The Starbucks board and executive leadership team regularly engage with all stakeholders, and we are committed to constructive dialogue that furthers our collective goal of creating long-term value for all stakeholders”

For this week’s discussion, find a company that is having board of director issues or “proxy fights” and how this may relate to shareholder wealth and/or activist investors. Your chosen supporting article(s) may or may not specifically mention shareholder or stakeholder wealth and that’s OK.

Please note that there is at least a 30 minute delay after you submit your initial post before you can see the other students’ posts and make a reply.

PLEASE NOTE THAT THIS ASSIGMENT IS TO ONLY REPLY TO THE POST OF TWO STUDENTS. I AM ATTACHING THEIR DISCUSSION POST. 150 WORDS FOR EACH

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