But the point of this article it seems, is not that CEOs with MBAs are worse managers, short sighted, greedy or foolish. The enterprise consists of assets, both

But the point of this article it seems, is not that CEOs with MBAs are worse managers, short sighted, greedy or foolish. The enterprise consists of assets, both tangible and intangible, also called capital, and workers who provide labor. We call returns to capital “profit” and returns to labor “wages”. If I understand this paper correctly, MBAs in aggregate neither grow the pie nor shrink the pie compared to non-MBAs. What they do well is increase the share that goes to capital rather than labor.