Lesson 5 of 7 · 15 min
The stakeholder groups in detail
Each stakeholder group has its own claim, power and goals: private lenders and boards can exert strong influence, while employees, customers, suppliers and governments shape the firm through labour, revenue, credit and regulation.
In short
- Shareholders hold the exclusive right to vote on the board, mergers and liquidation.
- Private debtholders (banks, lessors) hold to maturity, see non-public information and can have great influence; bondholders rely on public information and the original contract.
- Boards mix inside and independent directors; single-tier boards dominate in the US and UK, two-tier (supervisory + management board) in Continental Europe.
- Staggered boards make a change of control slower but give continuity.
- Managers are paid with salary, bonus and multi-year stock incentives; employees seek pay, security, development and safety; customers seek value and safety; suppliers want timely payment and a lasting relationship; governments want compliance and taxes.
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