Note that you would still need to pay a decent return to shareholders in order to maximize these other things, just like currently you need (usually) to sell goods, pay a salary and pay your taxes to maximize the shareholder value.
No, you would still need to grow to a large company with lots of revenue, but if the metric to optimize is salaries paid, then paying shareholders anything at all is in direct conflict with paying salaries to workers. The problem here is designing set of incentives that would encourage appropriate results, and the difficulty is that not all incentives work equally well, or even at all.
No, the difference is that you need to pay salaries in order for company to continue operating. If you don't, the employees will just quit.
On the other hand, there's absolutely no need to pay anything to shareholders for a company to operate, other than legal obligation. Shareholders going on strike makes absolutely no difference for the company.
No, you only pay the returns after you got funded. Except of contract enforcement in court, the investors have absolutely no way to force the company to pay up. That's what I meant by "legal obligations".
Of course, if you get yourself a reputation of not returning money to investors, you'll unlikely to get funded the next time, and if the investors have no way to force the company to pay dividends, they will fund few companies in the first place. The point is, maximizing salaries paid is a terrible metric, precisely because of bad incentives it creates.
> This applies only to companies that do not require capital to operate/grow.
But when they require capital to grow, you aren't returning the money to investors anyway -- what would be the point of that? The investors only expect the dividends once the capital needs of the company are satisfied, and once that happens, the company no longer needs the investors.
Not necessarily -- the board decides that. Shareholders don't have anything directly to say as to how exactly company is operated, and for good reason -- if they did, they could be held liable for the company actions.
No, you would still need to grow to a large company with lots of revenue, but if the metric to optimize is salaries paid, then paying shareholders anything at all is in direct conflict with paying salaries to workers. The problem here is designing set of incentives that would encourage appropriate results, and the difficulty is that not all incentives work equally well, or even at all.