Executive Greed: Examining Business Failures That Contributed to the Economic Crisis

This book explores the contribution of corporate CEOs and their top lieutenants toward business success and failure. By looking at the three most recent economic crises, the S&L crisis, the dot-com bubble, and the recent subprime mortgage disaster, the author explains why and how corporate managers led their organizations toward disasters in the long-run, and explains the recent destructive collaboration within the organization, across the industry, and between business and government.

“I find the book highly relevant, scholarly and well-written.”--Dr. Subhash C. Jain, Professor & Director of Center for International Business Education and Research, University of Connecticut“An indispensable companion for any aspiring leader in today's globalized economy.”--Nicholas Grigoriou, Principal, Monash College Guangzhou Program, Peoples Republic of China

“Executive Greed is an excellent and thought provoking read. It is a reality check, and a must read for CEOs, corporate leaders, managers and business school academics. It analyses the short-termism of todays corporate leaders and delivers numerous strategic business-for-tomorrow success tools for CEOs. The books innovative and competitive customer-focused solutions are highly suitable for corporate long-termism, and for the ongoing growth in shareholder value.”—John Hamilton, Associate Professor and Director of E-Business, James Cook University“The author courageously points his finger at one of the worst illnesses of modern capitalism. He builds a bridge between the theoretical models taught in business schools and the daily practices of business life, where top executives seem to have ‘forgotten the basics of good management in favor of their greed for personal financial gain. His considerations help the reader understand where executive greed originates and how it hurts all stakeholders. The book also provides valid suggestions on how to control executive greed and limit its dramatic consequences, with no fear of shaking up the corporate executive establishment. Something which, nowadays, is well worthy of consideration!”--Riccardo Spinelli, Post-doc Research Fellow, Department of Economics, University of Genoa

“Dr. Kothari delineates the cozy incestuous relationship between the boards and senior executives for mutual gain that perverts the interests of individual shareholders.  The horrific impact of executive greed on both companies and countries is explicitly explored.  Practical solutions for corporate governance reforms are advocated.  All board members, executives, and legislators should scrutinize this study to understand and to avoid the ‘dark side of the free enterprise system which triggers cataclysmic economic crises.”--William Bradley Zehner II, PhD, Fellow, IC2 Institute, and Associate Professor of Management at St. Edwards University

“Executive Greed is a fast paced read on "doing the right things" in corporate America instead of "doing things right...for stockholders, that is."  From short sighted, short-termed strategy to treating humans inhumanely, Executive Greed seeks to explain the causes, effects, and cures for placing stockholders over an organization's stakeholders.  A good read for today's business student to grasp the current business and economic situation facing America and the world.”--Charles Fenner, PhD, SUNY

“Dr. Kotharis work is an academic masterpiece of our time- very insightful and thought provoking-. His brilliant narrative encourages the reader to think deeply on how management has directly contributed to the success/failure of business organizations. Executive Greed will definitely engage the reader to reflection on misguided management practices & the uncertain future that lies ahead.”--Dr. Juan C. Barrera, Center for Business & Economics, Elmhurst College

Vinay Kothari is Regents' Professor Emeritus in the College of Business at Stephen F. Austin State University.

Preface * GENERAL OVERVIEW * Introduction * Nature of Management Failure * ROLE OF MANAGEMENT LEADERSHIP: REALITIES & MYTHS * Realities of Leadership Contribution * Leadership Myths * UNDERLYING ROOT CAUSES OF MANAGEMENT FAILURE * Executive Compensation - Unsound & Unjustifiable Practice * Corporate Board Governance - Fiduciary Neglect * Regulatory Climate - Power of Money * Management Club - Collusive Team Playing * FAILURE OF STRATEGIC MANAGEMENT * Absence of Strategic Thinking & Outlook * Slanted Management Intelligence Acquisition * Lack of Marketplace Competitive Excellence * Inadequate Product & Market Innovations * Unhealthy Work Environment * Reckless Strategic Financial Behaviors * CONCLUSION & RECOMMENDATIONS * Concluding Remarks & Recommendations * APPENDIX * Suggested Readings * Some Organizational Profiles & Shortcomings in Product & Market Developments * Bad Economic News - Some Recent Examples & Facts