Professor Sudhakar Balachandran argues that by not choosing to forgo bonuses they were scheduled to receive, executives at AIG missed a chance to boost economic morale.
"We're missing a great opportunity here," Balachandran says. "This is the time for business to lead, not for business to sit there and say, 'We're contractually entitled, so this is what we do.' We have to restore people's confidence. The same thinking that got us into this mess isn't going to get us out."
Sudhakar V. Balachandran
Professor Sudhakar Balachandran is interested in performance measurement, corporate governance and valuation. These three subjects are sometimes referred to collectively as shareholder value management. Specifically, he studies how firms use performance measures to align the interests of managers and shareholders and create shareholder value.
Balachandran, who has more than 10 years of business experience, is a former management consultant at Ernst & Young and manager at Baxter Healthcare Corporation. He teaches the core course on managerial accounting, for which he was given the Dean's Award For Teaching Excellence in 2006.