Sunday, December 11, 2011
Who Should Run Corporations?
I'm not sure whether my answer will make sense. This question seems to be the hardest to answer, but I offer this - "The critical issue is separation of power from risk. The professional manager without holdings in the corporation has the power to sink the company by bad decisions but all he can lose is his job. Since it is rare to admit that you were duped by a conman, most job evaluations are full of hype or outright lies. Stockholders have the power to fire managers but all they can do is vote on the recommendations of a committee. Again, risk and power are separated. Not a good idea."....^^(((<*>)))^^
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