Gretchen Morgenson: From Wall Street to Journalism
Masters in Business
00:00
The Origins of Piracy and Looting
Private equity firms often put people on the company's board and sometimes those board memberships will deliver earnings to those board members. The monitoring fees had this really kind of abusive element to them. They were typically structured as 10-year contracts. Regardless of profitability or how they're doing, they did it every year. So if the private equity firm sold the company after five years, the company still had to pay.
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