profit and wealth maximization

Ultimately, what matters to shareholders is the value of their shares. The company should be managed so as to benefit the shareholders.

There are various reasons why profit is not a good measure of the benefit to shareholders. For example, profits from year to year can be manipulated. Also, a company could maybe generate more profit by borrowing money at a lower rate than they can earn from the assets in which the money can be invested – however, borrowing makes things more risky for the shareholders and could therefore result in a lower share price, which is not good for the shareholders.