Financialized CEOs cashing out the ranches

After the trusting relationships among the engineers and developers and the marketing people and the operations people, all of which relationships are necessary for the building up of a productive enterprise, have done their job and fulfilled their purpose and the profit-maximizing firm has completed the task of building a productive enterprise a new phase of the capitalist's objective will begin. The firm, ready to betray those operational trusts, will turn to the financial officers and financialize corporate relationships. The objective of the financialization would be to use up all the built-up the trust while the executive management engages in a process of cashing out the embodied and stored value in the enterprise.

When the financial officers take over the enterprise, the cashing out will have begun. Then the chief executives of the enterprise become members of the financial sector rather than the operating sector. Then they begin to demand financial sector-style compensation packages as pay-offs for their willingness to sell out the trust of the material-economy-based enterprises.

The financial officers accomplish this betrayal by introducing the element of time. They demand speed in the returns of the enterprise rather than allowing for the respecting of the natural rhythms of the operating company. When the operational managers fail to live up to the unreasonable demands for speed in the development of returns the financial managers are able to replace them with managers who are willing to draw down the stored up value in the interests of achieving short run returns. That drawing down of stored up value is what makes the enterprise more fragile, and ultimately leads to its collapse; but typically not before the managers have wrung all the value out of the enterprise not through equity participation but through salary and the rights to sell their equity holdings.