Caterina Tantalo

The single-minded pursuit of a short-term shareholder value maximization “mantra” by top managers often results in long-term value destruction for shareholders. We explain this paradox and develop an alternate, market-based approach labeled “competing for essential stakeholders” (CES). CES provides levers that promote long-term value creation for shareholders and for other essential firm stakeholders. Top managers using CES act as “operators” of the firm as a multisided marketplace.