Musings

ThosStew@aol.com ThosStew@aol.com
Sun, 14 Oct 2001 14:04:05 EDT


John Kenneth Galbraith's the new Industrial State takes the Berle/means 
argument into the 50s and 60s

stock options were supposed to eliminate the "manager/agent problem" that 
berle and means identified by giving them something that would make them 
think like owners. For industrial-era (or maybe I should say corporate-era) 
companies, where the capital WAS tthe stockholders and a few senior leaders 
made most of the decisions about allocating it, that made sense. Where the 
cpaital is largely human, invested by the employees, the model breaks down--a 
chapter in my forthcoming book (shameless plug) The Wealth of Knowledge will 
wander into this briar patch. 

Tom 

Tom