WeWork Debacle: Why Corporate Governance Matters
The recent saga of WeWork—a stylish co-working concept—provides a stark reminder of the importance of adhering to proven corporate governance principals. The corporate form as a means of funding an enterprise works very well when the owners elect a board, the board hires and oversees management, and management adheres to metric-based goals. However, when a cult of personality grows around a founder who believes he or she always knows best, paired with hands-off investors and a passive board, the governance...