By Sam Pizzigati “Our current health care system in the United States works just fine — for the corporate executives who run it. Take, for instance, Michael Mussallem. This eminent power suit has been the CEO at Edwards Lifesciences, a…
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Jamie Dimon needs to stop gaslighting America
By Linette Lopez “Jamie Dimon, the CEO of JPMorgan Chase — the biggest bank in America — needs to stop gaslighting the entire country. For quarter after quarter — just as he did on Tuesday — he has joined with…
Is capitalism killing America?
By Theodore Kinni “On August 2, 2017, the Dow Jones Industrial Average hit a record-breaking 22,000 — its fourth 1,000-point advance in less than a year. That same day, I read the first sentence in Peter Georgescu new book, Capitalists Arise! End Economic…
The case for stock buybacks
By Alex Edmans “If paying excessive CEO salaries is the most maligned use of corporate funds, stock buybacks may well take second place. Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price. They fund the…
Destructive Stock Buybacks—That You Pay For
By Ralph Nader “The monster of economic waste—over $7 trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald…
Hajj: Antidote for the malignancy of American materialism
By Yuram Abdullah Weiler “Muslims of the world, whether Sunni or Shi’a, can attest to the veracity of Imam Khomeini’s words of nearly a half century ago. Since those prescient words were uttered by the Founder of the Islamic Republic…
Molinaroli left his mark on Johnson Controls in his brief, tumultuous tenure as CEO
By Guy Boulton “In less than three years, Alex Molinaroli transformed Johnson Controls Inc., setting off a burst of deal-making that culminated in the 132-year-old company being bought by Tyco International and its official headquarters being moved to Cork, Ireland.”… [Click HERE to read…
Companies do more buybacks when their CEOs are cashing out options but don’t you dare call it insider trading
By Owen Davis “One of the weird facts about executive compensation is that the numbers companies give to the SEC don’t really line up with how much cash executives actually take home. In 2014, for instance, the top 500 highest-paid…
Recession on the horizon
By Martin Hart-Landsberg “According to Bloomberg News, analysts at a number of major financial institutions see “mounting evidence” that a recession is not too far away.”… [Click HERE to read the full article]
Innovative Enterprise Solves the Agency Problem: The Theory of the Firm, Financial Flows, and Economic Performance
By William Lazonick ♦ Since the late 1980s, the dominant ideology of corporate governance in the United States has been that, for the sake of superior economic performance, companies should “maximize shareholder value” (MSV). As promulgated by agency theorists, however, MSV is an ideology of value extraction that lacks a theory of value creation. As a theory of value creation, I have constructed “The Theory of Innovative Enterprise”—an analytical framework for understanding how a business enterprise can generate a good or service that is of higher quality and lower cost than products previously available. In this essay, I use innovation theory to provide both a general theoretical critique and a selective empirical critique of agency theory.
