The Financial Economist Who Tried to Fix Capitalism Twice

Michael Jensen spent much of his life asking one of the most important questions in modern business: What makes companies work well, and what causes them to fail? For decades, his ideas shaped how corporations were managed, how executives were paid, and how investors judged success. Some praised him as one of the most influential thinkers in modern finance. Others blamed his theories for encouraging corporate greed, soaring executive compensation, and an obsession with shareholder value. Few economists have had such a powerful influence on the financial world.