...is beginning to blow back. Editor and Publisher has a story on Peter G. White, Conrad Black's first business partner, writing an angry open letter to Hollinger Inc. management, blaming them for the near-total collapse of Hollinger Inc. stock.
Those whose eyes goggled at Conrad Black dismissing the corporate-governance movement as a "fad" can see the E and P article linked to above as evidence of how far that movement has spread. Those who saw the shareholder revolt in the 2002 Hollinger International annual meeting as a just comeuppance for Conrad Black, though, are beginning to see that more than one team can play the same game.
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As far as wind-sowing and whirlwind-reaping are concerned, Roger Martin in the Toronto Life "Business Brief" blog points to what the indirect consequence of two legislative measued designed to stifle CEO greed were. First of all, elimination of tax-deductibility for CEO salaries in excess of $1 million per year caused non-monetary compensation to explode. Secondly, the mandated disclosure of top executive pay encouraged competitive raises. He recounts these unintended blowbacks to support his argument that legislating away CEO greed will do little good. The only remedies to it, he concludes, are shareholder vigilance and potential shareholder inspection, of a public company's CEO, before putting any money into that company's stock.
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