Short-term results and long-term performance are not irreconcilable, but are different, and will have to be balanced.
The new corporation will have to balance short-term performance with the long-term interests of pension-fund shareholders. Maximizing short-term performance will jeopardize the interests of pension-fund stockholders.
Significantly, the claim of the absolute primacy of business gains that made shareholder sovereignty possible has also highlighted the importance of the corporation’s social function. The new shareholders whose emergence since 1960 or 1970 produced shareholder sovereignty are not “capitalists” in the traditional sense. They are employees who own a stake in the business through ...
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