Does It Matter? Shareholder Capitalism Capital is allocated to firms that can use it well and is kept away from firms that are likely to waste it Practiced in the United Kingdom and United States Entrusted to CEOs and other professional managers Cost:monitoring cost.How to solve:disclosure,management pay,prohibitions Problems:good managers are penalized and poor ones rewarded if investors get things wrong,and this seems to happen with some regularity.• Capital is allocated to firms that can use it well and is kept away from firms that are likely to waste it • Practiced in the United Kingdom and United States • Entrusted to CEOs and other professional managers • Cost: monitoring cost. How to solve: disclosure, management pay, prohibitions • Problems: good managers are penalized and poor ones rewarded if investors get things wrong, and this seems to happen with some regularity. Shareholder Capitalism Does It Matter?