UMass Economist Lenore Palladino Publishes New Book Challenging the Notion of Shareholder Primacy

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Lenore Palladino, associate professor of economics and public policy, has published a new book examining the power structures that exist in modern corporations. “Good Company” (The University of Chicago Press, November 2024) explores the history and political economy of corporations, arguing that the guiding principles of many firms have evolved to place shareholders above all else. 

Palladino asserts that corporations enjoy significant operational benefits from the capitalist system and that, in return, they are obligated to contribute to the public good. However, over the decades, she presents evidence that companies have become more focused on boosting share prices – through stock buybacks and shareholder bonuses – than being good corporate citizens.

Through policy reforms, the book proposes a path forward for corporations to recalibrate their values with a renewed focus on social and economic good. 

“‘Good Company’ offers new ways of thinking about corporations, the core of capitalism,” says Sanford M. Jacoby, distinguished research professor of management at the University of California, Los Angeles. “The book is a head-on challenge to the myth that what’s best for corporate shareholders is best for the rest of us and even for companies. Palladino considers public policies to make companies more innovative and equitable, including changes in tax law, fiduciary rules, corporate boards and the process for distributing corporate wealth. ‘Good Company’ is incisive and much needed.”

“Good Company” is available for purchase directly through The University of Chicago Press and from booksellers everywhere.