GE chief attacks executive ‘greed’
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"“We are at the end of a difficult generation of business leadership ... tough-mindedness, a good trait, was replaced by meanness and greed, both terrible traits,” said Mr Immelt, who succeeded Jack Welch, one of the toughest leaders of his generation, at the helm of the US conglomerate. “Rewards became perverted. The richest people made the most mistakes with the least accountability.”
Several executives, especially in financial services, have apologised for their companies’ role in the crisis but Mr Immelt’s remarks went further, linking bad leadership to growing inequality.
“The bottom 25 per cent of the American population is poorer than they were 25 years ago. That is just wrong,” he said. “Ethically, leaders do share a common responsibility to narrow the gap between the weak and the strong.”"
ft.com
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[Overcompensated players across the spectrum of commerce and finance have taken large numbers of vital enterprises down. The main driver for sub-par performance and risky behavior has been - you guessed it - increased compensation. We've created incentives for increased compensation, which in turn creates incentives for risk-taking. If the risk-taking fails, we pay anyway. Meanwhile, across the economy we overpay for mediocrity.]
Jim |
