The CEO of Capstone Financial Group, Darin Pastor supervises the company’s investment operations. From his office in Irvine, California, Darin Pastor works closely with the management teams of Capstone’s portfolio companies to grow long-term earnings and increase value for shareholders.
Shareholder returns are calculated by subtracting sales, operating costs, taxes, and capital costs from revenue. Therefore, to improve returns, a company can either:
– increase revenue by differentiating its products from those of its competition (adding features or functionality);
– reduce the cost of sales by partnering with the right suppliers, distributors, and retailers;
– increase returns from operating costs by hiring the right staff, training them, and improving working conditions to boost productivity and workplace creativity; or
– reduce the cost of capital by optimizing assets and other leverage options.
These measures may lead to short-term bumps in expenses, such as research and development to improve product offerings and staff training to improve staff performance. However, in the long run, the measures will improve the company’s performance and shareholder value.