Robert A G Monks. Hardback. 252 pages. Wiley. £15.99/$29.95
This book is a call for action to restore fiduciary responsibility and expunge lip-service accountability from US corporations.
Monks begins with a depiction of today’s chief executives as emperors or ‘philosopher-kings’, rather than stewards of shareholder property. They control their own compensation schemes, manipulate stock options, and determine their successors – an entrenchment of power he compares to the Russian oligarchs. Executive pay should be directly linked to company performance, Monks argues, and shareholders should be able to make governance changes where needed.
Corpocracy then systematically traces the history of the corporation to show the mistakes and the greed that Monks believes have corrupted an entity originally modelled on the democratic principles of US government. A common theme running through the book is the argument that regulatory bodies neglect their mandate and instead serve the hand that feeds them. The author links this malaise to the ascendancy of cost-benefit analysis, which determines that if something doesn’t feature on the balance sheet it doesn’t exist.
It’s not all Big Brother conspiracy. Monks does celebrate shareholder democracy heroes and can’t resist including a fantasy conversation between the US president and chiefs of staff that paves the way for the return of corporate accountability in short order.
Generally though, this book doesn’t make cheery reading, even if it does say what needs to be said – and with admirable honesty.
Jonathan Bain
