“On the face of it, shareholder value is the dumbest idea in the world” — Jack Welch, 2009. As GE’s CEO in the 80s, however, Welch championed corporate focus on shareholder returns. “Converts to the creed”, the Economist summarizes
, “had little time for other ‘stakeholders’: customers, employees, suppliers, society at large and so forth.” What went wrong? Steve Denning describes how such a stance is counterproductive
, creates turmoil in capitalism and fosters an environment in which “CEOs and their top managers have massive incentives to focus most of their attentions on the expectations market, rather than the real job of running the company producing real products and services.”
posted by the mad poster!
on Dec 27, 2011 -
Business magazine editor sleeps with interviewee.
Harvard Business Review editor Suzy Wetlaufer interviews retired GE CEO Jack Welch for HBR. They begin a torrid romance (Welch is, of course, still married to his second wife.) Other editors find out about the romance and Wetlaufer cancels her story. Other HBR editors call for her resignation and the managing editor merely reassigns her. 2 other HBR editors quit in disgust. You can't make this stuff up!
Additional coverage via Financial Times
; Boston Globe
posted by gen
on Mar 12, 2002 -
The _real_ next President is chosen
... well, of the Fortune 500, anyway. Today, Jack Welch tapped his successor as CEO of the worldest largest and most profitable public corporation, General Electric. As expected, he chose an executive in his early 40's which (with luck) will give GE another king with a 20+ year reign.
posted by MattD
on Nov 27, 2000 -