Episode 6 - The Illusion of Risk Management: How Corporate Boards Fail Shareholders

Episode 6 — The Illusion of Risk Management: How Corporate Boards Fail Shareholders In this episode, Franz breaks down one of the most persistent myths in investing: the belief that corporate boards protect shareholder interests. Through personal experience, historical examples like Bonneville Pacific and Enron, and a deep look at board incentives, Franz explains why boards often fail — and what investors should focus on instead. Topics Covered: Why boards are structurally incapable of true oversight The Bonneville Pacific fraud and what it taught about board “prestige” How Enron’s highly credentialed board approved disaster Information asymmetry between management and directors The social culture of boards and why dissent dies Boards approving executive compensation — and their own Why no one is held accountable when boards fail What real oversight would look like (but will never be) What investors should watch instead of governance “theater” Next Episode (in two weeks): Why internal corporate forecasts fail — and why companies keep producing them anyway.