Archive for March, 2009

Corporate Inbreeding

Monday, March 23rd, 2009

Nell Minow has an interesting commentary piece on CNN (“Boards are real culprits in AIG mess“) that looks at the equivalent of inbreeding among the boards of directors of the companies in the middle of the financial mess, and the effects of their serial failures. Turns out we’re really not focusing on the bodies that are supposed to provide effective oversight of corporate overstepping, and in the process to revamp, revise, and review corporate governance at failing companies, we tend to leave them in place.

Favorite quote:

People say that the definition of insanity is doing the same thing over again and expecting a different result. In this case, insanity is allowing the same people to continue to serve on the board after massive failure and expecting them to produce a different result.

Now, tell me, why do we keep re-electing the losers in Congress?