Alignment Quote by Aubrey McClendon
“American business would be run better today if there was more alignment between CEOs' interest and the company. For example, would the financial crisis of 2008 have occurred if the CEO of Lehman and Morgan Stanley and Goldman and Citibank had to take a very small percentage of every mortgage-backed security... or every loan they made?”
About This Quote
Aligning CEOs' personal stakes with company risk could prevent crises.
In simple terms: CEO risk sharing may avert disaster.
Key Takeaway
Promote equity in executive compensation.
Themes
corporate governance
risk management
accountability
Mood
analytical
pragmatic
Type
business
economic
When to use this quote
- board oversight
- investment policy
- regulatory reform
- shareholder activism
Key Concepts
agency theory
financial ethics
Questions to Reflect On
- What structures ensure true alignment?
- How to balance risk and innovation?
A Different Perspective
Complex incentives may still fail.
