Rakesh Bhandari wrote: >Front page story in today's WSJ is pretty darn lucid. > >Doug, in Wall Street, you chart the shifting relations between >rentiers and corporate insiders. > >Does this Enron case indicate that the relations have shifted again? >An anomalous case? It seems that the rentiers have been juked for >the sake of a narrow band of insiders? > >I need to re-read Wall Street.
And I need to update it! Yeah, it looks like the rentiers were screwed - at least some of them, those that didn't get to play with the SPVs. But now they're pissed, and there's going to be a big fight to reassert their power. They're also going to have to rethink the use of stock options as a mechanism for aligning management & board interests with those of stockholders. Who wants to be too sharp-eyed when the stock is rising 60% a year? There's a positive disincentive to be responsible. Doug
