I would like to begin by stating that if I were a member of the Board and this was the scenario in front of me, I would request additional facts and information before deciding. For example, I think it is critical to understand how long it has been since the minority shareholders have been paid out a dividend. Although the case states they have been paid well over average, it also insinuates that it has been quite some time since they've received what they are owed for their continuous support. On the other hand, although the case states that employees are currently paid well over industry average, we are unaware of what their cost of living is or their quality of life. The unknown information makes it challenging to select a side as both contain reasonable justification based on where you are standing.

1. If I had to select one direction, I would choose to side with the proposition of the CEO. The ultimate reason being that without employees and customers, a company is unable to operate. Capital investments and shareholder support is extremely critical, especially for a business to get off the ground. However, once things are running and success is building, if there is no one to continue those operations and no money returning via customers, then there is really not a business. By selecting the route of the CEO, you would reaffirm the value of each employee, and the appreciation for your loyal customers. When people are considered and treated well, they remain loyal, and loyalty is great for any business.

1. I can see both arguments. Although I believe shareholders are owed back what they do invest, I believe other stakeholders do hold a claim in corporate earnings. My reasoning ultimately boils down to the fact that each stakeholder (shareholders included) is a necessary and essential ingredient in the success of a corporation.

1. There are benefits and risks for each proposal. The benefits of the CEO's proposal are a low turnover due to strong wages, likely increased sales due to lowered prices, increase in positive company culture due to satisfied employees and them feeling valued, and continued loyalty from customers. The risks of the CEO's proposal are upsetting the shareholders, and a potential decline in the share price.

The benefit to the minority shareholders proposal is by paying back shareholders dividends at a higher amount, who have been patient and loyal, you will keep them satisfied and happy, therefore in your corner. The risk to this proposal is upsetting your employees or other stakeholders. It could also be a missed opportunity to increase your company's reputation both internally and externally. Reputation is everything especially in today's world, so putting the shareholders above all other stakeholders could land very negatively with other stakeholders and be detrimental.

Do you disagree with it ? why?