Thank you to Dave Larrabee for re-igniting this discussion and to Brad Case and others for some very thoughtful comments. Having taken several courses taught by Michael Jensen and, then, Dean William Meckling at the Simon School (then the University of Rochester's Graduate School of Management), I learned the concept of maximizing stakeholder wealth and have used it as my tool for decision-making throughout my career. Therefore, I feel it incumbent upon me to add a couple comments to others on the topic.

They did not teach that it is the sole obligation of the executive team and Board to maximize shareholder value, which would imply a short-term focus on increasing stock price. Rather, they taught to maximize stakeholder wealth, which correctly is characterized by Brad Case to incorporate both the current value and the net present value of future discounted cash flows.

Here is another part of the model that requires attention. Stakeholder wealth incorporates more stakeholders than simply stockholders. They are one component, generally, but certainly not always, the most important component. Other stakeholders include employees, customers, suppliers, and the local and global community, and all should be weighed in determining what will maximize long-term stakeholder wealth. By employing this as my decision guidepost, I have increased stakeholder wealth on the order of a billion dollars throughout my career, and through my consulting with CEOs and Boards, I am always seeking to add to that.