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The biggest vulnerability in a corporation is that the interests of management and ownership (the shareholders) aren’t aligned. A common situation repeated ove
by jnwatson 4y ago
The biggest vulnerability in a corporation is that the interests of management and ownership (the shareholders) aren’t aligned.
A common situation repeated over and over is that a manager has the opportunity to take huge risks for a big bonus, yet the worst that can happen is they lose their job.
Case in point, it took a small team at AIG only 6 weeks of selling a financial product to bankrupt the 90-year-old company and contribute to the 2008 crash, ultimately leading to a Fed bailout.