Management Turnover as Change Agent

Monday, February 11, 2008

Recommended Reading - Corpocracy by Robert Monks

Jeff Nash wrote a piece in today's Financial Week praising well known shareholder activist, venture capitalist, attorney and founder of International Shareholder Services, Robert Monks' latest book, Corpocracy: How CEOs and the Business Roundtable Hijacked the World's Greatest Wealth Machine -- And How to Get It Back. Nash writes,
... Mr. Monks is targeting CEO pay in a big way. In his new book, Corpocracy, he blames weak boards, inefficient government agencies such as the Securities and Exchange Commission (a “structure in shambles,” he argues) and the Department of Labor (“whose regulative approach could be taken out of a Joseph Heller book”) and, of course, CEOs themselves.

“The illusion,” Mr. Monks writes tartly, “is that we have a system of checks and balances that oversees executive compensation and allows market forces to flow through fairly to the paycheck. The reality is that CEOs in essence pay themselves and do so in ways that need not be disclosed or approved by anyone.”
For those interested in corporate governance the book should be worth a read, check it out.

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