The take over of American corporations
by the Cult of the CEO is one of the big untold stories of Wall Street.
The CEO is not supposed to "control" the corporation...the board of directors is.
But with boards of directors filled with stooges to the Cult to the CEO....we have reversed the historical norm. This all started in the 1980's, after 1970's interest rates went back down, and American companies were "dirt cheap," often selling for much less than their book value. That was the age of the private takeover, and "green mail." (Not unlike the sad case in Russia!)
In Truth, the CEO is supposed to be a "mere employee" --something like a city manager or the manager of a baseball team. In short, someone who is paid a salary, and can be fired on short notice.
The take over of America's corporate boards of directors by the CEO class....is what destroyed American Shareholder Capitalism. And made it into the shell game we have today.....nowadays it's all about looting, not "enhancing shareholder value."
Shareholders have been merely a "means to an end" for CEOs lately! Without some serious re-regulation by Washington or the states....the looting will continue.
