A New, Overarching Goal for Boards

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 … Read more

Blame Boards For Excessive CEO Pay and Perks

Leadership speaker and author Bob Vanourek uses this image of two people shaking hands in front of a board table to illustrate the importance of the board making ethical and enduring decisions when it comes to CEO bonuses and pay.

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 … Read more