The failure of the corporation
In light of recent events, it would benefit all CEOs to be aware of who they are in fact working for: their shareholders. Management are, after all, only meant to divert the companies capital in such a way as to provide a maximum return for their shareholders for as long as they remain shareholders. Therefore, when any decision is made the management should consider whether the most dire of consequences will cause a loss of capital. If there is a possibility for such a crippling loss, then the decision should automatically be rejected with no further consideration required.
There is an old maxim that states “with greater risk there is a greater reward” but I no longer feel that is fundamentally sound. In cricket the safest shots are the ones where the bowler has strayed the most and with that safety comes the ability to collect oversized rewards. Similarly with companies the greatest rewards are gained when others have strayed the most; when the failures of the over-leveraged and unintelligent decision makers leads to their destruction and the ultimate rewards for the safe and strong competitors who are left standing in a now less competitive market.
Management should therefore focus on growing at a rate that never puts the company in a position where their shareholders may end up with worthless paper the next day. Ultimately the rewards, while not as thrilling as the quick growing over-leveraged companies will be bountiful, while at the same time allowing shareholders and management to sleep soundly at night.