Hill Times full page ad from February 11, 2008, click on to enlarge
As Roger Martin, Dean of the Rotman School explains, all of the bad outcomes that have made themselves known in the last 12 months can be explained by improper incentives to corporate managers, like those at BCE. What other reason would BCE”s Board and Management have had for turning Canada’s largest telco into an insolvent basket case?
Click on the above for a graphical analysis of how absurd all of that was, in the face of vastly superior (read: optimal) alternatives that management failed to disclose to its shareholders, which shows the lengths they were incented to go to.
Friday, May 22, 2009
Case study: Distorted incentives behind the financial crisis: BCE
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1 comment:
Talk about low down dirty tricks , almost like something from the Conservative playbook on the disruption of parliament.
It is the duty of the CEOs & the other cheese heads at the helms of these companies to maximize shareholder value & not just line their own pockets.
Ignoring the Catalyst proposal because it did just that betrayed their duty as the heads of this company---the owners be damned, we need our stock options & bonuses.
No wonder this country is going to hell in a hand basket.
Dr Mike
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