"Purpose Debate ": Time to Tune, Not to Reinvent

Sullivan discusses pay plan design which does not need an overhaul for a stakeholder approach. The more things change, the more they stay the same which could be said about Business Roundtables' announcement that the purpose of companies is to serve all stakeholders. Albeit hugely symbolic in signaling that shareholders don't stand alone as beneficiaries of corporate value creation, the statement didn't change the biggest day-today challenge for CEOs: Making tough cost/benefit tradeoffs when it comes to spending company time, effort, and money. The key to success is the same as it has been for years. After developing the right strategy, executives need to make the right tradeoffs to compete for investors, employees, customers, suppliers, and public support to execute that strategy.