Triple Crown Leadership

Triple Crown Leadership

Tag Archives: organizational values

A New, Overarching Goal for Boards

Posted on

One of the painful results of boards embracing the goal to “maximize shareholder value” is shown in the Edelman Trust Barometer: Only 53% of respondents trust business Only 18% of the general population trust business leaders to tell the truth The overarching goal for corporate boards should not be to maximize shareholder value. Instead, boards should set as their primary objective to: Build an excellent, ethical, and enduring organization. Excellent means achieving extraordinary results for customers, employees, and shareholders. Ethical means achieving those results the right way, with integrity, not cutting ethical corners. Enduring means achieving those results sustainably, being conscious of the firm’s impact on the planet, and acting responsibly to ensure precious resources are not wasted. Enduring also means acting sustainably inside the firm, not burning people out, nor   …Continue Reading


Blame Boards For Excessive CEO Pay and Perks

Posted on

Compensation levels for CEO’s and C-suite execs took off like a rocket starting in the 1980’s. It was caused by the dual whammy of Milton Friedman’s “maximize shareholder value” maxim and the advent of the “leveraged buyout” focus from private equity firms. I should know because I participated in those phenomena as a CEO. The stock options I was granted during those years far exceeded the norms of option grants in prior decades as boards tried to “align” management’s financial interests with those of shareholders. There is nothing inherently wrong in private equity, stock options, in divesting unproductive assets, or delayering bloated companies. Those undertakings are a healthy part of marketplace adjustments, as long as they are done ethically and respectfully. But the C-suite financial gains that boards approved to,   …Continue Reading