Which driver is NOT part of the Shareholder Value Analysis?

In the context of Shareholder Value Analysis, the focus is on strategies that enhance the financial performance and value of a company from a shareholder’s perspective. This typically involves maximizing profits and increasing the efficiency of capital use.

The correct choice highlights that generously increasing employee salaries does not typically align with the core goals of Shareholder Value Analysis. While paying competitive salaries can attract talent and improve employee satisfaction, excessive salary increases could lead to higher fixed costs without a direct correlation to increased productivity or profit margins. In turn, this could negatively impact shareholder value if such increases do not contribute to performance improvements or enhanced profitability.

On the other hand, strategies such as maximizing sales through advertising, reducing working capital investment, and minimizing asset investment are directly related to improving the financial metrics that shareholders care about. These actions can help increase revenues, optimize cash flow, and efficiently use the company's assets, all of which contribute positively to shareholder value.