Problem 1. Do officers and directors in public companies place their own self-interest above those of its shareholders? Explain your answers.
Problem 2. Is shareholder value the only proper concern for corporate management? Should the interests of other stakeholders (employees, customers, community, etc.) be considered independently or only to the extent necessary to enhance the long-term interests of the shareholders?
Problem 3. Mechanically speaking, the shareholders elect the directors who elect the officers. In small businesses, this is the way it really works. However, in big business, the officers have practical control over the nomination and proxy solicitation process. Discuss the distribution of power between the Board and Management. Is increasing the power of the Board at the expense of the power of the Chief Executive always in the best interest of the shareholders?