Saturday, March 16, 2013

Listen to this BNN interview about the role of shareholders in today's businesses

Apart from being a great communicator Michael Roach is a superb salesman for CGI's services. But that is not the most important message in this BNN interview.  "... they are an important investor but beyond that they play no role in the company", says CGI's Michael Roach.   Thus, the shareholder is not much different that a bond holder (a point also made by Warren Buffett) but rather than receiving interest, the shareholder gets his/her proportional part of the profits. However, management decides how those earnings are invested in the form of re-investment in the business, share buybacks and/or dividends.

http://watch.bnn.ca/#clip884637  (What does CGI do and how does it compare by Canadian tech giant Blackberry)
http://watch.bnn.ca/#clip884643  (Corporate financial strategy and stakeholder roles)
http://watch.bnn.ca/#clip884642 (Shareholder rewards)

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