Wednesday, May 24, 2006

An independent board?

Home Depot is an example of today's modern corporation which seems to exist more for the benefit of management rather than the stockholders. This seems to be a classic case of the problems of an interlocking board where the principle is to be "you scratch my back, I'll scratch yours". In this case, as in most of the others, the CEO walks away with a very large bundle of money and perks while the stockholder sees little or no appreciation in the value of his shares.

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