The Horse Race and Corporate Governance

horse race

A horse race is a contest of speed among horses that either are ridden by jockeys or pulled by sulkies and their drivers. The horses that compete in horse races are usually Thoroughbreds. The horse race has a long history in human culture and continues to have a major impact on many industries, businesses, and societies today. It is a popular sport that is highly competitive and often lucrative for those who bet on it.

Despite the romanticized veneer of horse racing, a great deal of abuse and cruelty is prevalent in the sport. During a race, horses are forced to sprint at speeds that can cause serious injuries and even death. Many horses are given cocktails of illegal and legal drugs in order to mask injuries and enhance performance. A lot of horses die during the course of a race, often from gruesome breakdowns or by bleeding from their lungs (exercise-induced pulmonary hemorrhage). In addition, horses are frequently subjected to the cruel practice of being drugged to death.

Behind the scenes of horse racing is a world of drug abuse, injury, and slaughter. However, some companies use the classic succession “horse race” approach to select their next CEO. This method, which pits several recognized candidates against each other in a competition to become the company’s next chief executive officer, is often seen as an effective way to find a leader who will drive growth and success for the organization.

While some governance observers are skeptical of the effectiveness of the horse race, others are firm believers that a well-run horse race can provide the leadership and strategic direction that a company needs to continue to prosper. The key to a successful horse race is to make sure that the board and management team have the proper structure and processes in place to minimize disruptions to the company’s operations. In addition, a strong horse race can also serve as an incentive to other senior-level executives who may see a path to more senior positions within the organization.

While the critics of horse-race coverage are still sounding their cries, it is hard to deny that this type of reporting is a vital part of the democratic process. By providing voters with a window into the closed world of insider politics, election handicappers can help to focus attention and keep the political press from becoming an endless series of policy white papers that nobody reads.