Question II: • Susan and Walter are twins both being considered for C-level management positions in...

Question II:

• Susan and Walter are twins both being considered for C-level management positions in a company with an entirely male-populated management. In all relevant respects Susan and Walter have identical resumes.

• According to what Lynn Stout argues in The Shareholder Value Myth, is the company obligated to hire one of the candidates over the other?

• Which candidate do you think it might be easier to hire?

• Which candidate do you think you would hire in such a situation?

Expert Solution

Today the business world has been dominated by shareholder -value. Professors, policymakers, as well as business leaders routinely focous on the mantras that public companies belong to their shareholders, and the proper aim of corporate government is to maximize shareholder wealth because the shareholder wealth is best measured by share price (stands for the share price today, not share price next year or next decade). According to Lynn Stotut should hire who have the highest shareholder equity.
It is hard to find out the best from both of them. But it will be great if an indvidual can show their wealth and also the participation in company.This dogma drives directors as well as executive to run public company with a relentless focus on raising stock price.
Susan should be hired if he have the ability to show up what his belongings are as well as the percentage of holding share also decide the best of them.

Rahul Sunny answered 1 year ago

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