The Shareholder Supremacy

The article delves into the concept of Shareholder Supremacy, tracing its roots back to the early 20th century and highlighting its impact on modern capitalism. It discusses how companies shifted focus from building sustainable businesses to prioritizing shareholder value, leading to short-term decision-making and growth-at-all-costs mentality. The narrative includes examples like Ford Motor Company's clash with shareholders over reinvestment, Jack Welch's aggressive tactics at General Electric, and the rise of management practices like stack ranking. Welch's tenure at GE, particularly his expansion of GE Credit, is scrutinized for its financial maneuvers and impact on the company's market capitalization. The article critiques how Welch's strategies prioritized stock price manipulation over genuine innovation and sustainable growth, ultimately reshaping the corporate landscape towards profit-driven motives at the expense of employees and long-term viability.