The Supreme Irony: To Be a “Relatively” Good Manager, Make the Company “Too Big to Fail” !

(PDTI has received this apt comment from a viewer who prefers to remain anonymous)

If I consider the TEPCO issue ironically, shareholders equity of the company mounts to 1.6 trillion yen, but the damage TEPCO should pay is told to be 5 to 10 trillion yen. TEPCO's shareholders should have lost all of their investment. But, though they lost 85 percent of their wealth, they still have 15 percent. One of the reason for this is that TEPCO is too big to fail. Getting a status of too big to fail may be good way to preserve the shareholders' wealth. In this context, TEPCO's board has done a good job.

– Anonymous

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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