James Montier has got it right. This shareholder value maximization is a dumb academic idea. Is it anything other than self-delusion to believe that paying CEO's millions of $ in incentives is adding value for shareholders? The point is "maximizing" shareholder value has led to "maximizing" financial incentives for management, it is causing the US economy all kinds of problems. Check out the story on Forbes, The Highest-Paid CEOs Are The Worst Performers.