Joshua Fershee on the End of Director Primacy
In this episode, Joshua Fershee, Professor of Law at the West Virginia University College of Law and Head of the Economic and Community Development Group in the West Virginia University Center for Innovation in Gas Research and Utilization, discusses his article "The End of Responsible Growth and Governance?: The Risks Posed by Social Enterprise Enabling Statutes and the Demise of Director Primacy," which was published in Transactions: The Tennessee Journal of Business Law. Fershee begins by observing the expansion of social enterprise enabling statutes and the decline of director primacy under law. He explains that these create perverse incentives to prioritize short-term financial gains for stockholders as the only function of the for-profit corporate form, rather than allow corporate directors to make the best long-term decisions from a variety of factors. He also reflects that these incentives would lead to unsustainable business practices and distort the normal market performance of corporations. He concludes by providing his insights and recommendations to address this concerning trend. Fershee is on Twitter at @jfershee.
This episode was hosted by Luce Nguyen, a student at Oberlin College and the co-founder of the Oberlin Policy Research Institute, an undergraduate public policy organization based at Oberlin College. Nguyen is on Twitter at @NguyenLuce.