January 10, 2012

President and CEO

In these difficult economic times should we be looking for a Presidential candidate that has CEO type qualities? The duties of a CEO of a business does not come close to the responsibilities of the President of the United States.

Per a textbook used by many colleges for their introductory course in finance , it is the objective of the CEO to "maximize the wealth of the corporations shareholders". Foundations of Financial Management, Page 12, by Stanley B. Block, Geoffrey A. Hirt,  Bartley R Danielsen

The more shares an individual owns, the larger his share of the corporation he owns. For every share of stock owned you have one vote.

This is the primary mission of the Board of Directors and Officers of the corporation. The corporation is expected to operate within the law while pursing their mission of shareholder wealth maximization.

The role of The President of the United States can be drawn from the Preamble of the Constitution that says;

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

Doing a good job as CEO does not guarantee to make one a leader of a Nation.

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