MiddleGround Capital’s Post

Corporate incestocracy. Where bad business hiring and compensation practices for C-level executives, esp CEO's who seem to know everyone as those on the boards of directors know everyone in the overcompensation club, driven by large investors. So many failures that, in the end, heavily reward the failed CEOs as they laugh all the way to the bank, the corporations and communities that these businesses operate in pay the price. Obviously investors are not hurt enough to stop the practice of golden parachute payouts. Is that because our tax structure is socialist enough to publicly fund business failure? David Calhoun, leaving Boeing in tatters, gets a golden parachute of around $32 million. Boeing loses brand identity, untold billions in business. Other notable failures. Former Pfizer CEO Hank McKinnell Jr.'s five years in charge led to the company's market value falling by $140 billion. He was fired from Pfizer in July 2006 with a severance package worth nearly $200 million. I guess if you have a #StanfordMBA this makes you a winner because in 2007 McKinnell was the Arbuckle Award winner. Well, it is #Stanford and the incestocracy. https://lnkd.in/g2UrBiBa

Re-industrialization means big investments, challenges, and important decisions. Will America commit to recruiting, educating, and training a new industrial workforce? Explore the risks and rewards, and learn about the exciting investment opportunities that come with rebuilding America's manufacturing. 👉 Read our new blog here: https://lnkd.in/eFh9-vB9 #reindustrialization #investing #manufacturing #manufacturingindustry #investingnews Sharon Condon-Duffy

The southern region running from Texas to Virginia is attracting major investments, driving economic growth, and redefining the industrial landscape. Discover how the South is rapidly transforming into America's new industrial heartland in the thought-provoking article from The Economist below. https://lnkd.in/gbp6NVhZ #industrialinsight #cre #industrialrealestate #thoughtleadership

The Business Roundtable made headlines almost 4 years ago with their effort to “Redefine the #Purpose of the Corporation to Promote an Economy that Serves All Americans.”  In the statement, signed by its 181 CEOs, including the CEOs of Apple, Walmart, Amazon, Bain & Company, The Coca-Cola Company, Gap, HP, KKR, Mars and more….the BRT reversed its allegiance to “#shareholderprimacy.” Instead, the statement read, "While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our #stakeholders.” In order, the statement then committed to deliver for customers, employees, suppliers communities and the environment and, finally shareholders.” The statement was hailed and received enormous press. The The New York Times wrote: "It was an explicit rebuke of the notion that the role of the corporation is to maximize profits at all costs — the philosophy that has held sway on Wall Street and in the boardroom for 50 years.” Really? 💰Almost 3 years after the BRT statement, Harvard Law professors Lucian Bebchuk and Roberto Tallarita studied what changes BRT signatories had made with respect to governance, compensation and bylaws. Here is what they found: "pledges by corporate leaders to use their discretion to serve stakeholders” have resulted in nearly no changes.  🛢️Yesterday, POLITICO reported that the BRT is actively lobbying to kill the SEC rule that would force companies to disclose (not remediate) their #carbonemissions. This, notwithstanding the fact that a number of BRT Board members (including Apple, Cisco, Citi…) have come out in support of the rule. How is that for “purposeful?” Trust action not words. Auden Schendler Adam Rome Bill Weihl Joel Makower Lawrence Heim John Elkington Judy Samuelson Lisa Sachs Maxine Bédat Dominique Chantale Alepin Tim Mohin John Elkington Andrew Winston Alan Schwartz AO Mindy Lubber Bill Baue Desiree Fixler Andrew King Tariq Fancy Alison Taylor Gil Friend

How are well do voluntary pledges work? So far, not so well. Like Carbon Offsets, pledges might serve a purpose in the “on ramp” phase of organizational maturity. but we are past that phase and this research by Ken Pucker shows that the BRT pledge had zero positive impact (except a great PR opp). There are countless pledges in the built environment: architects, manufactures, designers, all have multiple pledges they can join. Are the doing any good? Is anyone accountable to check up on them? I’d love to see a report card on this. Maybe pledges are for flags, not existential threats?

An interesting perspective by adrian wooldridge on how multinational companies respond to global tensions by unpicking organizational structures that have served them for the last four decades.  Bloomberg Opinion #deglobalization #multinationalcompanies #organizationalstructure #politics https://lnkd.in/dncgi3_Y

Great to release the new family business case in INSEAD !! we talk about how the professional management does not work after the outsiders win the ownership right over a 3rd generation-led family business in Taiwan. Bennedsen, M., Chung, H.-M., Lu, Y.-C., & Henry, B. 2024. Tatung: Lin Family Ousted in Third Generation, Outsiders Win Control. INSEAD Case, No.6900. https://lnkd.in/ghGHAcb2

"Delve into the fascinating world of corporations with my latest article on Raza & Associates. In Understanding Incorporation, I explore the ever-evolving landscape of corporate strategies, governance, and their impact on the global economy. Discover the latest trends, challenges, and opportunities shaping the corporate world today. Read the full article here: https://lnkd.in/dtS3BcDj. #corporations #businessstrategy #corporategovernance "

I believe manufacturing can—and should be—a unifying force during this fraught election year. Read my latest piece in #forbes to find out why. #manufacturingsuccess #china #manufacturing #leadership

The U.S. economy has undergone a remarkable transformation, vividly illustrated by the shift in market capitalization. Once led by industrial kings like General Electric, Exxon, AT&T, and Coca-Cola, we've seen a groundbreaking overtaking by tech companies like Apple, Microsoft, Google and Amazon. These technology-driven firms have not only emerged as leaders in innovation but have also eclipsed traditional giants in market capitalization. It's a testament to how agility, forward-thinking, and embracing new technologies can lead to monumental success. The accompanying analytics showcase this phenomenal growth and the pivot in our economic focus. It's more than just numbers; it's a story of resilience, innovation, and a forward-looking approach that heralds a new era in our economy. Let's celebrate this shift and remain inspired by the endless possibilities ahead. Also ,track the changes across the timeline and provide me with your analysis and conclusions. #economy #innovation #technology https://lnkd.in/dKjzk86S