Best in brief: A matter of trust

Douglas West

This 'Best in Brief' item is a synopsis of a paper from Harvard Business Review, and looks at the dramatic lack of trust that many in the West have of senior executives' commitment to looking after shareholders interests.

Best In Brief

Harvard Business Review: A matter of trust

Charles Handy

Summary: Douglas West University of Westminster

A Gallup poll has shown that 90% of Americans feel that people running corporations cannot be trusted to look after employee interests, and only 18% believe they look after their shareholders a great deal. Some 43% think senior executives are in it for themselves, and in Britain the figure is 95%. What has gone wrong? The stock option shoulders most of the blame. In 1980, only 2% of executive pay was tied to stock options, but now it is thought to...

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