A Long Time In Finance
Overpaid and Unaccountable
Jul 26, 2024
Dan Davies, economist, discusses the unaccountability of managerial elite creating terrible business outcomes. Topics include blame shifting to systems, financial markets as measure of accountability, challenges of borrowing large sums of money in businesses, and the shift towards corporate purpose beyond profit.
27:18
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Quick takeaways
- The 'Unaccountability Machine' shields decision-makers from consequences, fostering irresponsible decision-making practices.
- Corporate governance shift towards shareholder value has led to prioritizing debt over long-term investments, raising concerns.
Deep dives
The Unaccountability Machine and Organizational Crises
The podcast delves into the concept of the 'Unaccountability Machine' outlined in the book, exploring why big systems often make detrimental decisions without clear accountability. Examples like the Royal Bank of Scotland and the financial crisis are cited to demonstrate how organizations can become criminogenic. By discussing past management practices and complex organizational growth post-World War II, the episode highlights the challenges faced by modern systems in handling increasing complexity.
