mardi 31 décembre 2013

When corporate boards fail

We all know all the stuff about capitalism rewarding those that do and punishing those that don't. And yet we have the ongoing problem here in America where corporate boards just rubber stamp whatever management wants to do, leave and collect their annual $250,000 check for being glorified lapdogs to CEO's that garner extravagant wages even while driving their companies off cliffs into ruin.



Compounding this problem is the fact that numerous people serve on multiple boards and a CEO at one company might be a board member at another where the CEO is a board member at his own company. Basically a situation where they can't oppose each other without their own interests being compromised. This leads to an increasingly incestuous pool of big shots who make decisions not in the interests of the shareholders—let alone the company itself—but to further enrich their own social bubble even while destroying all that which they are supposed to guiding and leading.



Is it any wonder that in America the CEO earns many hundreds of times what their average employee does even though they often only succeed in ruining the company then moving on to do it all over again? If we actually tied CEO earnings to their performance wouldn't the companies be better served?



So, what do we do about this? Is there anything we can do about this?



Is this a case where capitalism has become its own worst enemy?







I debated putting this in the economics section but as it seems to be about a larger social problem I thought it would also work here.





via JREF Forum http://forums.randi.org/showthread.php?t=271215&goto=newpost

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