Day: October 31, 2013

The Center for American Progress (CAP) report, “The State of Women in America,” uses 36 different health, economic, and leadership factors to measure disparities between states and rank the best and worst states for women." Delaware women don't have it so bad (relatively speaking). We are fifth overall and our gals make $0.81 for every dollar men make for the same job. The national average is $0.77 - so not too shabby ladies. Maryland is number 1 by that measure. They pay their daughters $0.85 for every dollar their sons make doing the same job. The worst states in which to be a non-man are predictably, more often than not, in the south. Louisiana's Mesdames et Mesdemoiselles take down a measly $0.67 compared to their Messieurs. [...]

When I was getting my MBA 10 years ago, the manifold virtues of shareholder primacy were so ingrained in the culture of business academics that, while they informed every bit of the curriculum, they were only discussed in passing. There was no more attention paid this foundational concept than you would pay attention to the concept of addition in a calculus class. Fortunately that is changing. Lynn Stout, the Distinguished Professor of Corporate and Business Law at Cornell Law School, helps move shareholder primacy into a coffin and provides some coffin nails for the myth that has wrecked our economy in her most recent book, The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations and the Public. This abstract of the book explores the logical connections between the 40 year rise of shareholder value thinking and subsequent declines in investor returns, numbers of public companies, and corporate life expectancy. It also shows that shareholder primacy is an bullshit economic theory, completely lacking in support from history, law, or empirical evidence. [Set aside a few minutes to read the whole thing.]