The Evolution of Corporate Governance: From Managerial Capitalism to Shareholder Primacy
Corporate governance has undergone significant transformation over the past century. The mid-20th century era of managerial capitalism saw executives acting as stewards of institutions, balancing diverse stakeholder interests—often prioritizing their own. Excesses like RJR Nabisco's infamous "RJR Air Force" underscored the self-dealing tendencies of this model.
Shareholder primacy emerged as a counterpoint, championed by figures like Gordon Gekko in popular culture. This shift reflects broader debates about corporate purpose that continue to resonate in today's financial markets—including cryptocurrency ecosystems where decentralized governance models challenge traditional hierarchies.