One of the many problems that defenders of America's free market system fail to address is the severe dysfunction at the top of the nation's big public companies. Cases in point include some of the biggest bankruptcies of the last decade: Lehman Brothers, General Motors, WorldCom, Enron and many more. And at the core of the problems that led to these bankruptcies is a failure of directors to act on behalf of shareholders -- at least in part because they have more of an incentive to work for the CEO than for public shareholders.
I was reminded of this again as I read a report in The New York Times on directors who glide from serving on the boards of failed enterprises to those of surviving ones.
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