tag:blogger.com,1999:blog-5880610.post110429970331621091..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: Fannie Mae exits scandalousSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5880610.post-1104343978196564422004-12-29T13:12:00.000-05:002004-12-29T13:12:00.000-05:00It seems to me that most people who end up on corp...It seems to me that most people who end up on corporate boards *are* examples of homo economicus - with the possible exception of a few oddball academics, etc.<br /><br />Then you have a problem, because the future value of a good relationship with a powerful CEO (e.g., Carly Fiorina or Franklin Raines) far outweighs the negative consequences of being too soft in oversight.<br /><br />There was aSteve Hsuhttps://www.blogger.com/profile/02428333897272913660noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-1104342698763911442004-12-29T12:51:00.000-05:002004-12-29T12:51:00.000-05:00I think the biggest problem today in US corporate ...<I>I think the biggest problem today in US corporate governance is the cozy relationship between directors and management. It is obvious that directors are not incentivized properly to look out for the best interests of the company, but rather to maintain good relationships with the chief executive.</I>Reminded me of this:<br /><br />http://papers.ssrn.com/sol3/papers.cfm?abstract_id=519722<br />nickhttps://www.blogger.com/profile/06565599336652651542noreply@blogger.com