BUSINESS

Former GE Chief Jack Welch Says Obsession With Short-Term Profits, Share Price Gains Was "Dumb Idea"

04/12/2009 05:12 am ET | Updated May 25, 2011

Jack Welch, who is regarded as father of the "shareholder value" movement, has said the obsession with short-term profits and share price gains that has dominated the corporate world for over 20 years was "a dumb idea".

In an interview for the Financial Times' series on the future of capitalism, the former General Electric (NYSE: GE - News) chief said the emphasis by executives and investors on shareholder value since he spelt it out in a speech in 1981 was misplaced.

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