American Prestige E234 - The Rise of Shareholder Primacy w/ Sean Delehanty
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Jan 27, 2026 Sean Delehanty, historian and author of Company Men, traces how shareholder value became the guiding principle of American corporations. He walks through postwar corporatism, conglomerates, the rise of financial economics, hostile takeovers, leveraged buyouts, private equity, and the 1990s consolidation of shareholder primacy. The conversation also examines how stock-centric pay reshaped the economy and who gained from those shifts.
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Defining Shareholder Value
- "Shareholder value" means maximizing a company's stock price and economic value for investors.
- Sean Delehanty traces this idea from business schools and financial economics into corporate practice in the late 20th century.
Litton As The Conglomerate Cautionary Tale
- Litton Industries exemplified postwar conglomerates that grew by acquiring disparate businesses under managerial control.
- Its eventual collapse exposed limits of empire building and shattered faith in managerial supremacy.
Cheap Money Masked Corporate Flaws
- Cheap money hid flawed acquisitions and fueled empire building during mid-century growth.
- When financing tightened, poor businesses and overstretched conglomerates quickly unraveled.
