Top US CEOs say shareholders' profits no longer top priority
Former UBS Financial Services CEO Joe Grano explains U.S. CEOs' move to place less emphasis on shareholder value in favor of employee benefits and well-being.
Top CEOs from the Business Roundtable, including JP Morgan's Jamie Dimon, agree that maximizing profits in all situations shouldn’t necessarily be the primary goal of corporations.
“Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity,” said the statement signed by 181 CEOs. “We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.”
Some of the biggest names in business put their signature on the statement, including Amazon’s Jeff Bezos and Apple’s Tim Cook.
The group also said its members “share a fundamental commitment to all of our stakeholders” and are committed to, “delivering value to our customers,” “investing in our employees,” local communities and added that “each of our stakeholders is essential.”
Former UBS Financial Services CEO Joe Grano told FOX Business on Monday that he is “delighted” that Dimon took the lead on the statement because he’s the “best executive we have right now” and the move creates balance.
“A corporation needs to look at itself as a partnership,” he told Connell McShane on “Cavuto: Coast-to-Coast.”
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“You have obviously your clients your shareholders and your employees. Every major decision has to be fair and equitable all three if you cut too good of a deal for any one of them then you're stiffing the other two. If it's only maximizing shareholder value that that's tainted it creates problems,” he explained.