Shareholder Value

Formal

In common use, cropping up in many conversations, it is used to refer to actions or activities which ‘increase shareholder value’ - ie, it benefits the financial interests of the shareholders and will ultimately increase the value of any shares that investors may hold. Delivering proposals to customers with proper financial appraisal can only help improve this ‘shareholder value’.

Real-world Example

A company focuses on shareholder value, prioritising decisions - like paying dividends or growing profit - that increase the wealth and returns of the people who own its shares.