RIP Shareholder Primacy

In “The American Corporation in Crisis—Let’s Rethink It,” PERI researcher Lenore Palladino argues that, for decades, the concept of shareholder primacy in corporate organization has abandoned the idea that corporations’ employees should benefit when the corporations are succeeding. Over recent decades, the commitment to shareholder primacy has contributed to the persistent rise of inequality between workers versus their employers—i.e., top management and share owners. Palladino proposes approaches to create more egalitarian corporate structures. Thirteen leading analysts comment on Palladino’s proposals in a special Boston Review Forum, and Palladino responds to the commentators.

>> Read article in Boston Review

PERI's Lenore Palladino argues that "shareholder primacy" -- the idea that corporations have no higher purpose than maximizing profits for their shareholders--doesn't reflect the reality of today's business dealings. 

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