The firm divided
Subtitle: manager-shareholder conflict and the fight for control of the modern corporation
By: Graeme Guthrie
Publisher: Oxford University Press
Published: 2017
Language: eng
Number of pages: 341
ISBN-13: 9780190641184
Subjects: Boards of directors; Stockholders; Corporate governance; Executives
Description: "In every corporation, there is an inherent conflict between the interests of the executives running the company and the shareholders who own it. The corporate governance issues resulting from these conflicts can lead to public and sometimes costly scandals: leaked excessive pay packages, CEOs stacking their boards with friends and cronies, massive payouts from management buyouts, extended proxy fights, and vocal shareholder activism, among other serious issues. In The Firm Divided, Graeme Guthrie examines these conflicts with the intention of illuminating for the reader the perspective of each player in the firm--executives, shareholders, and the board--and exploring the ways in which each player pursues his or her own goals, which is often at odds with the interests of other parties. Guthrie walks the reader through various governance scenarios by explaining the reasoning behind shareholder, executive, and board decisions and through vignettes of these situations playing out in real life"--
Notes: Includes bibliographical references and index.
Table of contents: title: Part One.; title: Monitor; title: A gadfly in the ointment : the consequences of separating ownership and control --; title: Whose side are you on? the role of the board of directors --; title: Overseeing the unseeable : the conflict between managers and shareholders -- -- Part Two.; title: Motivate.; title: Narrowing the gap : the incentives generated by managerial ownership --; title: A primer on pay : executive compensation and efficient contracting --; title: Hiding high pay : executive compensation and managerial power --; title: Separating the wheat from the chaff : incentives generated by executives' career concerns -- -- Part Three.; title: Delegate.; title: With one hand tied behind their back : delegating monitoring to external capital markets --; title: No skin in the game : delegating monitoring to financial analysts --; title: Crashing the party : delegating monitoring to large shareholders -- -- Part Four.; title: Sell.; title: A new broom : the market for corporate control --; title: Bypassing the board : offensive tactics in hostile takeovers --; title: Fighting back : defensive tactics in hostile takeovers-- -- Part Five.; title: The rules of the game matter as well.; title: Caught in the middle : reforming the legal and regulatory environment.