Isn't it all stealing? I mean for real. Bonuses. Golden Parachutes. Claw Back. Building in 'self serving' priorities. Isn't that all stealing?
Agency Risk
The risk that the management of a company will use its authority to benefit itself rather than shareholder. For instance, managers may elect to pay themselves higher salaries, which increases overhead, rather than to pay out extra profits as dividends. In a more sinister example, managers may steal the business' money.
Take it one step further. What if Board of Trustees, Chairpersons, and Board of Directors are all carrying out their own agendas in these major financial institutions.
Financial sector politics.
Agency risk is realized by stockholders in definition. But, don't human frailties often demand personal satisfaction when making decisions? Don't people bring their own values to a capacity? Aren't folks measuring their resumes and cirriculum vitaes?
In the way others have personal influence in decision making in the financial sector, magnify that by 1000 or more and you might come close to the Agency Risk within the federal government. While money is power, the USA federal government is a hub of power and influence. There is huge Agency Risk within the federal government.
Ethics.
Ethically, should any member of Congress bring their own agenda or that of their financial backers to the floor of the House or Senate? Is the Agency Risk doing damage too great that it seeks to topple the sovereignty of the USA?
Agency Risk
The risk that the management of a company will use its authority to benefit itself rather than shareholder. For instance, managers may elect to pay themselves higher salaries, which increases overhead, rather than to pay out extra profits as dividends. In a more sinister example, managers may steal the business' money.
Take it one step further. What if Board of Trustees, Chairpersons, and Board of Directors are all carrying out their own agendas in these major financial institutions.
Financial sector politics.
Agency risk is realized by stockholders in definition. But, don't human frailties often demand personal satisfaction when making decisions? Don't people bring their own values to a capacity? Aren't folks measuring their resumes and cirriculum vitaes?
In the way others have personal influence in decision making in the financial sector, magnify that by 1000 or more and you might come close to the Agency Risk within the federal government. While money is power, the USA federal government is a hub of power and influence. There is huge Agency Risk within the federal government.
Ethics.
Ethically, should any member of Congress bring their own agenda or that of their financial backers to the floor of the House or Senate? Is the Agency Risk doing damage too great that it seeks to topple the sovereignty of the USA?
