"[Management] though their ownership is normally negligible, are solidly in control of the enterprise. By all visible evidence the power is theirs... Some observers have sought to maintain the myth of stockholder power... it is hoped that incantation may save what the realities."
"The typical stockholder does not identify himself with the goals of the enterprise; he does not expect to influence these goals. He has a share in the ownership; normally his only concern is that it return him as much money as possible. If he can get more income or capital gain with equal security elsewhere, he sells and invests there. No sense of loyalty - no identification with the goals of the enterprise - normally prevents his doing so."
Thursday, 3 October 2013
JK Galbraith vs shareholder power
From The New Industrial State