2 ms·
"MBA" has become a sort of shorthand for everything that is wrong with modern American business culture. The pattern is typically something like: 1) Managemen
by DebtDeflation 6y ago
"MBA" has become a sort of shorthand for everything that is wrong with modern American business culture.
The pattern is typically something like:
1) Management awards themselves a bunch of stock and sets annual cash bonus targets tied to short term financial metrics.
2) Management then focuses entirely on optimizing for short term metric attainment (e.g., quarterly EPS) and current stock price, by minimizing investment in R&D and new products, reducing worker headcount, engaging in financial engineering like stock buybacks, etc.
3) Management extracts as much value for themselves as possible through the above and then leaves before it all falls apart, to repeat the process somewhere else.
MBAs might be over-represented within this group, but this isn't something taught in MBA curricula, not all MBAs are engaged in this abhorrent behavior, and non-MBAs do it as well.