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Books by Michael UseemInvestor Capitalism: How Money Managers Are Changing the Face of Corporate America
by Michael Useem

Published by Basic Books
Released 11/1/1999
paperback | US$33
ISBN: 0465050328

Read Pre-publication comments
Buy the Book: Amazon | 800CEOREAD | B&N.com


Michael Useem, a professor of management at the Wharton School of Business, explains an economic transformation that is not only changing corporate America but is having profound effects on the rest of society. Namely, that the managers of mutual funds now command so much power that corporate CEOs practically plead to have their stocks included in the fund. In turn, to make their stock appear attractive, CEOs are downsizing and restructuring companies in any way Wall Street deems favorable. And, strikingly, we approve of this action by supporting mutual funds. A revealing work. (from Amazon.com)

Pre-publication comments:

Amazon.com
Michael Useem, a professor of management at the Wharton School of Business, explains an economic transformation that is not only changing corporate America but is having profound effects on the rest of society. Namely, that the managers of mutual funds now command so much power that corporate CEOs practically plead to have their stocks included in the fund. In turn, to make their stock appear attractive, CEOs are downsizing and restructuring companies in any way Wall Street deems favorable. And, strikingly, we approve of this action by supporting mutual funds. A revealing work. 

The New York Times Book Review, Joseph Nocera
That this transformation is important strikes me as beyond question.

From Booklist
In recent years, individuals have placed their collective wealth in the hands of institutional investors, such as pension plans, investment companies, and bank trusts. Institutional investors now wield financial power over the management of large, publicly held companies, unleashing a set of forces that is greatly changing the face of American business; Useem calls this "investor capitalism." He describes and analyzes the foundations of investor capitalism, tracking its impact on managerial careers, corporate restructuring, and investor fortunes by using interviews with executives of 20 large corporations and 58 institutional investors who agreed to participate if they were not identified. Investor capitalism has set forth new rules of engagement as powerful institutional investors, unhappy with management's performance, elect to exercise stockholder power rather than sell their stock holdings at a loss, which has resulted in the restructuring of corporate organizations, removal of CEOs, and reorganization of boards of directors. The shift in the balance of power from professional managers who often had little accountability to powerful institutional investors affects corporations, their management, and their employees in profound ways. Mary Whaley 

Midwest Book Review
Investor Capitalism documents the struggles among interested parties that have transformed the way in which business goes about its business. Michael Useem talks the reader inside the boardrooms and into the proxy battles to track the origins of this shift in corporate power and analyze what it has meant for corporations, shareholders, employees, and the American economy. Investor capitalism is creating a new world for those whose lives are shaped by executive decisions, and it calls into questions traditional theories of how corporations make decisions and operates in the U. S. and abroad. If the principles of family capitalism dominated industrialization at the turn of the century, and if the concepts of managerial capitalism rose to dominance by mid-century, the rules of investor capitalism are coming to prevail by century's end. Shareholder canons have changed. Management principles are different. Governance is no longer quite so passive. Investor capitalism is changing the face of American business and American society. Investor Capitalism tells the story of those changes. Investor Capitalism is readable and accessible, a perfect introduction for the non-specialist general reader to the complex issues which shape the economic headlines of today's national and international discussions of trade and commerce. 

Rosabeth Moss Kanter, author of World Class: Thriving Locally in the Global Economy
"Michael Useem's insightful book documents a major shift in American business: toward shareholders as change agents. His in-depth insider interviews provide a unique, eye-opening view of the pressures on executives as activist investors and large financial institutions turn up the heat. Managers of the future must heed the message of Investor Capitalism."


 


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