Investor Capitalism : How Money Managers Are Changing the Face of Corporate America

A behind-the-scenes look at today's kingmakers: institutional investors. Out of the public eye, a small group of professionals--investment experts who handle other people's monies--are exerting ever-greater control over corporate managers, firing CEOs and pushing through 'restructurings' that cost thousands of jobs. Michael Useem's "Investor Capitalism" portrays the quiet, veiled nature of this dance of elephants, and portrays the enormous implications of its results. --John Rekenthaler, Publisher, Morningstar, Inc.

Michael Useem, a professor of management at the Wharton School of Business, explains an economic transformation that is not only changing corporate America but is having profound effects on the rest of society. Namely, that the managers of mutual funds now command so much power that corporate CEOs practically plead to have their stocks included in the fund. In turn, to make their stock appear attractive, CEOs are downsizing and restructuring companies in any way Wall Street deems favorable. And, strikingly, we approve of this action by supporting mutual funds. A revealing work.