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The Recurrent Crisis in Corporate Governance (Paperback)
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The Recurrent Crisis in Corporate Governance (Paperback)
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Named one of the 2003 books of the year in the "Economist" "A
convincing explanation of why, despite all of the recent reforms in
American corporate governance, there will probably be more firms
that go the way of Enron."
In the last thirty years, there has been a gradual erosion in the
abilities and responsibilities of corporate boards. In addition to
the ethics scandals that have plagued companies both new and
established over the last three years, a number of
over-diversified, over-staffed companies experienced failures that
might have been avoided had there been proper oversight on the part
of the board. While reform of the governance system has received
considerable attention from the press, business leaders, and
politicians, there have been few analyses of what is really
happening on a systemic level, and even fewer workable suggestions
for reform.
"The Recurrent Crisis in Corporate Governance" provides an expert
assessment of what went wrong on corporate boards and how to fix
them. The book begins with both a legal and economic examination of
corporate governance during the last three decades, including the
broad issue of boards taking on responsibilities without being able
to fulfill their obligations because of the lack of access to
information and people within the corporation. The authors then go
on to show the correlation between strong board performance and
strong company performance, make the case for separating the CEO
and Chair positions, comment on the collapse of nine major
corporations, including Global Crossing, K-Mart, Lucent, and Qwest,
and provide suggestions on how boards can be more effective
stewards of the shareholders' and public's trust.
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