A Greedy CEO Is Good For Shareholders - If There Is A Strong Board Of Directors
Saturday, June 21, 2014 - 23:50
in Psychology & Sociology
Steve Jobs was a good CEO, a visionary. He was also known as a monster driven to fits of rage and a known SEC law violator who gave himself stock options without bothering to tell anyone. He gave nothing to charity. He was in both a personal and a business sense, greedy. But he was good for shareholders. When is a greedy CEO bad for business instead of good? An article in the Journal of Management examines the effects of greed on shareholder wealth and looks at whether various contextual factors, like a strong board of directors, CEO tenure and discretion make the situation better or worse. The results were that a powerful board or long CEO tenure can moderate the relationship between greed and shareholder return. read more