breakingviews.com - cisco’s run of spending - nytimes.com
Published at: www.nytimes.com
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Dangers And Limitations Of Shareholder Value - Cisco And The Fate of Lucent
November 5, 2009
The ideology of shareholder value has dominated the thinking of many U.S. companies for at least two decades, to the detriment of longer-term strategies and internal investments, and often in practice mostly to the benefit of management's compensation packages. This article questions whether even Cisco will ultimately suffer the sad fate of other former U.S. icons (Lucent, GM), following a relative neglect of investment in internal development and excessive reliance on financial maneuvering.
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