How an ownership culture drives sustained shareholder returns

Fortuna partners Greg Milano and Marwaan Karame explore how an ownership culture fuels long-term shareholder returns in the final instalment of a five-part series on economic-profit-based value management. The discussion centers around an updated take on economic profit that shows a stronger relationship to shareholder returns, known as Residual Cash Earnings (RCE). By focusing on RCE, companies gain better insights into where value is created or destroyed, enabling smarter resource allocation and incentive compensation. The episode explains how this value management approach fosters five key traits of an ownership culture, as illustrated through real world case studies featuring corporate clients. This conversation offers valuable lessons for executives, investors, and business leaders aiming to enhance decision-making and build a true ownership culture within their organizations.