Keep pulling the thread on Eric Ries.
The Novo Nordisk foundation's decision to block a merger created over $500 billion in subsequent shareholder value.
Driven by the success of its GLP-1 drugs, Novo Nordisk's market capitalization grew to be larger than the GDP of Denmark.
To achieve a true 'mission lock,' companies like Patagonia and Anthropic have adopted multi-tiered governance structures where the board is accountable to an outside group of trustees.
Shareholder primacy was adopted into Delaware law around 1986, with courts interpreting the charter phrase 'any lawful act or activity' to mean 'maximize shareholder value'.
The era of shareholder primacy is believed to be over, and the current economic instability is a result of this system consuming itself.
Academic research indicates that companies with an industrial foundation-controlled structure outperform those with conventional governance models, in some cases by a factor of 5x.
In the late 1990s or early 2000s, the non-profit foundation controlling Novo Nordisk vetoed a board-approved merger with what was then the world's third-largest biotech company.
The current era of business is dominated by the principle of 'shareholder primacy,' which prioritizes financial returns over patient health or being of service.
The boards of directors of many healthcare organizations conceive of their primary duty in financial terms and to shareholders.
The concept of shareholder primacy is a relatively recent idea, not an ancient pillar of capitalism.
Under modern Delaware law, boards of directors in a takeover situation are legally conceived of as 'auctioneers' whose role is to secure the highest price for shareholders.
The modern general incorporation law, which allows anyone to form a corporation for any specified purpose without legislative approval, was enacted in Delaware in 1899.