NEWS TIP SHEET
When jurors found Joseph Nacchio guilty of insider trading, they served notice that senior executives must learn to better manage their egos, according to Mathew Hayward, an assistant professor of management at the University of Colorado at Boulder's Leeds School of Business.
"In today's political and legal environment, executives are kidding themselves if they believe that their greed will escape notice and consequence," Hayward said. "Whenever executives engage in inside trading, they are exploiting selling shareholders who lack their knowledge. When executives backdate options, they are taking wealth from other shareholders who buy their shares at market price. Hopefully, this decision will curtail the disturbing tendency for senior executives to needlessly and egregiously enrich themselves with shareholder money."
Hayward studies market and business psychology, particularly the impact of CEO hubris. He is the author of the book "Ego Check: Why Executive Hubris is Wrecking Careers and Companies and How to Avoid the Trap."
Hayward can be reached at (303) 735-6515. For assistance, contact Doug Nogami at the CU-Boulder Leeds School of Business at (303) 492-0786, or Greg Swenson in the CU-Boulder Office of News Services at (303) 492-3113.