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5 - The Buccaneers

Published online by Cambridge University Press:  19 June 2025

Michael Aldous
Affiliation:
Queen's University Belfast
John D. Turner
Affiliation:
Queen's University Belfast
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Summary

By the 1970s, Britain’s economic malaise had become chronic. This chapter shows how a group of business outsiders sought to cure the malaise by unleashing market forces. These buccaneers, including Jim Slater, Jimmy Goldsmith, James Hanson, and Gordon White perfected the art of the hostile takeover to shake up poor-quality incumbent management. They believed they were liberating assets and improving the performance of management by focusing their attention on shareholder value. This resulted in high-profile and acrimonious takeover battles. Their critics named them corporate raiders, and incumbents such as Denys Henderson of ICI fought back through accusations of asset stripping and sweating. Although few tangible elements of the buccaneers’ empires survived their fall in the 1990s, they had a profound impact on business strategy, the role of the CEO, and the British economy. They empowered CEOs, their demands for improved corporate leadership were followed, and a growing number of CEOs were sacked for poor performance. Their business model influenced the growing financialisation of companies and Margaret Thatcher’s economic reforms.

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Chapter
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The CEO
The Rise and Fall of Britain's Captains of Industry
, pp. 132 - 169
Publisher: Cambridge University Press
Print publication year: 2025

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