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33 J. Corp. L. 1 (2007-2008)
Toward Common Sense and Common Ground - Reflections on the Shared Interests of Managers and Labor in a More Rational System of Corporate Governance

handle is hein.journals/jcorl33 and id is 3 raw text is: Toward Common Sense and Common Ground? Reflections
on the Shared Interests of Managers and Labor in a More
Rational System of Corporate Governance
Leo E. Strine, Jr.*
I. FORCES BUFFETING AMERICAN PUBLIC CORPORATIONS .......................................... 4
A . Forced  Capitalism   ............................................................................................... 4
B. Shrinking Equity Returns and the Mountains of Money in the Markets ............. 5
C. The Corporate  Governance Industry ................................................................... 5
D. Academic and Journalistic Laziness ..................................................................  6
E. Professional Independent Directors .............................................................. 8
F. The Globalization of Capital and Product Markets Without the
Globalization of Externality Regulation .......................................................... 9
G. Despite High Wages, CEOs Are Not Enjoying Their Jobs .............................. 10
II. COMMON GROUND FOR MANAGEMENT AND LABOR? ............................................... 11
A. Settling the Continued Takeover/Corporate Election Hoo-ha .............................. 11
1. Abandon Classified Boards but Keep Traditional Poison Pills ................... 12
2. Create a Rational Corporate Election and Accountability System ............... 12
3. No  M ore  Pizza  on  the  W all ........................................................................... 13
4. Quiet the  CEO  Pay  Furor ...........................................................................  13
5. Give Managers and Directors More Time to Focus on Business ................. 14
6. Temper the Influence of Short-term Stockholders ........................................ 15
7. Reduce the Focus on Quarterly Earnings Estimates ................................... 16
8. Confront the Agency Problem Of Institutional Investors ............................. 16
9. Encourage Investment and Discourage Churning ........................................ 18
10. Eliminate the Connection Between Health Insurance Access and
* Vice Chancellor, Delaware Court of Chancery; Austin Wakeman Scott Lecturer in Law and Senior Fellow of
the Corporate Governance Program, Harvard Law School; Adjunct Professor of Law, University of
Pennsylvania Law School and Vanderbilt University School of Law; Henry Crown Fellow, Aspen Institute.
This paper was prepared for delivery as the keynote address at the annual spring banquet for the Journal of
Corporation Law and as The Dorsey & Whitney Foundation Lecture for the William Mitchell College of Law
Public Square Lecture Series. I am grateful for the help of Elane Boulden, Jeff Gorris, Adam Kestenbaum, and
Chris Szczerban in preparing this essay.

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