ABSTRACT
The most persistent criticism of higher education is its rising cost compared to almost every other part of the economy. Between 1980 and 2014, average (nominal) tuition rates grew at three times the rate of the Consumer Price Index, and many institutions continue to have trouble making ends meet. Clark Kerr, the great oracle of higher education in the twentieth century, was once quoted as saying that the three major problems of university administration are “sex for the students, athletics for the alumni, and parking for the faculty”. The modern publicly held corporation is an effective means of organizing capital and talent toward a single purpose: maximizing the financial returns to shareholders. By law, directors, and managers of public companies are obliged to pursue the greatest possible profits available within the bounds of regulation and prudence. The modern publicly held corporation is an effective means of organizing capital and talent toward a single purpose: maximizing the financial returns to shareholders.
