Executive Defense: Shareholder Power and Corporate Reorganization

Executive Defense: Shareholder Power and Corporate Reorganization

by Michael Useem
     
 

A quiet revolution came to corporate America during the late 1980s and early 1990s. Large shareholders - pension funds, insurance companies, money managers, and commercial banks - exercised new-found muscle, pressuring senior managers to improve disappointing financial results by reshaping their organizations. Michael Useem reveals how those investor pressures have… See more details below

Overview

A quiet revolution came to corporate America during the late 1980s and early 1990s. Large shareholders - pension funds, insurance companies, money managers, and commercial banks - exercised new-found muscle, pressuring senior managers to improve disappointing financial results by reshaping their organizations. Michael Useem reveals how those investor pressures have transformed the inside structures of many corporations, better aligning them with shareholder interests. Useem draws on numerous sources, including interviews with senior managers and intensive studies of seven large corporations representing a range of restructuring experiences and industries - including pharmaceuticals, transportation, chemicals, retailing, and financial services. He shows that organizational changes have affected many areas of corporate life: headquarters staffs have been reduced, authority has filtered down to operating units, and compensation has become more closely tied to performance. Change also extends to corporate governance, where managers have fought back by seeking legal safeguards against takeovers and by staggering board terms. They've also put significant resources into building more effective relations with shareholders. As Useem demonstrates, this revolution has reached beyond the corporation, influencing American politics and law. As increasing ownership concentration has caused companies to focus more attention on shareholders, corporate political agendas have shifted from fighting government regulation to resisting shareholder intrusion. This book will be important reading for managers, economists, lawyers, financial analysts, and all observers of American business.

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Product Details

ISBN-13:
9780674273986
Publisher:
Harvard University Press
Publication date:
01/28/1993
Edition description:
New Edition
Pages:
302
Product dimensions:
6.42(w) x 9.53(h) x 1.24(d)

Table of Contents

1The Restructuring of American Business1
2The Rise of Shareholder Power19
3Organizational Alignment57
4Intensified Management of Managers89
5Aligning Shareholders129
6Restructured Agendas for Political Action158
7Moving Alignment Up191
8The Paradoxes of Management and Ownership216
Appendix 1: A Note on Compiling Information247
Appendix 2: Tables Related to the Rise of Shareholder Power255
References260
Index279

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