3.1 Out of Crisis: Innovations in the 1980s and Beyond

What role do CEOs play in leading corporations? As a follow up to our earlier video, Professor Kochan interviews the former chairman of CitiBank and the NY Stock Exchange, John Reed, for his perspective on the roles and responsibilities of corporations and corporate leaders. 

Video: The Changing Role of the Corporation: Interview with John Reed

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Attentiveness Question

John Reed provides a rationale for why companies have become increasingly focused on short-term stock returns. According to Mr. Reed, which of the following factored into this change?

Explanation

John Reed cites greenmail as a crucial factor in the shift toward companies' focus on short-term stock price.

Exercise 1