By Tom Lloyd
ISBN-10: 023025098X
ISBN-13: 9780230250987
ISBN-10: 1349311871
ISBN-13: 9781349311873
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Extra resources for Business at a Crossroads: The Crisis of Corporate Leadership
Example text
The “nabobs” exemplified a weakness of these early companies which survives until this day – too much of the value they created ended up in the pockets of the officers. Clive only became a significant shareholder in the EEIC after he had amassed a huge fortune as its employee. In modern parlance, EEIC officers imposed heavy “agency costs” on shareholders, partly because the company was operating too far away for shareholders to control its managers, and partly because there was and there remains to this day a conflict between the interests of the shareholders of a joint stock company and the interests of its managers.
They could have walked south for the stone, but there was no need. Plenty of axe heads reached them from the tribes that lived near the quarries, through a line of trading partners who passed them north, in exchange for spears tipped with stingray barbs passed south through the same hands. The trade developed, not because of a plan to make spears and swap them for axes, but because of differences in price. A Yir Yoront could exchange y axe heads from a neighboring southern tribe for x spears, and sell y axe heads to a northern neighbor for more than x spears.
The emigration of people from large CEO-led companies is likely to accelerate over the next few years as a consequence of the current recession. S. com bubble, employment in companies with more than 500 employees fell by 3 percent while selfemployment rose by 4 percent. Power, in large companies, is what Fred Hirsch called a positional good 6 that can only be enjoyed by a few, when it is denied to many. Everyone wants power, but since not everyone can have it, we have to settle for being equally powerless.
Business at a Crossroads: The Crisis of Corporate Leadership by Tom Lloyd
by George
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