began to agree with Jensen that the legal and institutional structure of the leveraged buyout represented a new corporate form with the potential to correct long-standing problems in corporate governance.ConclusionAs the 1990s unfolded, U.S. business enjoyed a financial and managerial renaissance, in no small measure because of what corporations had learned from the leveraged buyout. The managerial corporation did not disappear, but institutional shareholders became more active, and boards of directors more attentive. Executive compensation became more tied to equity performance. Boundaries separating the interests of managers and owners, of shareholders and other stakeholders, began to blur in the outlook of corporate managers. With the apparent success American business was having after some fifteen years of structural reform, even European companies began tying managerial performance more closely to incentives to improve shareholder value.Word Count- 1,620 ...
