In David Gelles’ new book, The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America―and How to Undo His Legacy, he chronicles how Welch’s laser focus on maximizing shareholder value by any means necessary - including layoffs, outsourcing, offshoring, acquisitions, and buybacks - became the new playbook in American business.
The book demonstrates how this shareholder maximizing version of capitalism has led to the greatest socioeconomic inequality since the Great Depression and harmed many of the very companies that have embraced it.
I recently discussed the book with Mr. Gelles.
00:00 David Gelles introduction
00:13 Question 1: Why does Jack Welch stand out among CEOs?
02:12 Question 2: How did Jack become THE celebrity CEO?
03:56 Question 3: Was the Boeing 737 MAX disaster related to toxic leadership?
05:53 Question 4: How does the "financial engineering" culture lead to Boeing crashes?
08:00 Question 5: Did Welch turn his back on "shareholder value" being his top value and priority?
11:08 Question 6: How do attitudes championed by Welch contribute to income inequality?
13:23 Question 7: Why this book, why now?
14:39 Question 8: What's the antithesis to Welch's ideology?
17:47 Question 9: What lessons can early-stage founders can take from Welch?
21:03 Wrap-up
