Sample Solution

According to Forbes, the primary motivation for Circon’s Chairman and CEO Richard Auhl was to create value for its shareholders. Auhl sought to do this by focusing on long-term growth initiatives such as researching new technologies, building relationships with strategic partners, expanding into international markets and exploring new product lines (Kamalani, 2017). By utilizing these strategies he aimed at driving revenue growth in order to increase the company’s market share which in turn would help maximize shareholder value.

In addition, Auhl’s financial incentives were strongly aligned with those of the shareholders. One way in which he achieved this was through his commitment to delivering shareholder dividends. In 2010 alone Circon paid out approximately $50 million dollars in dividend payments (Circon Corporation Investor Relations , 2010). Furthermore, executive compensation was tied directly to the performance of either individual or team goals; if targets were met then executives received their bonuses but if they weren’t achieved then no additional payouts were made (Circon Corporation Investor Relations , 2016). This ensured that executives had a vested interest in their performance and consequently helped them remain focused on growing shareholder wealth rather than merely seeking short-term gains.

Overall, it is clear that Richard Auhl’s primary goal was optimizing shareholder value while also ensuring his own financial security. By aligning his interests with those of shareholders he created an environment where both parties could benefit from each other’s success while helping ensure stability within the organization thus leading it towards long term sustainability.