Board Betrayal: The Weirton Steel Story: Failed Governance and Management Hand in Hand with Arthur Andersen: An Esop Fable [Paperback]

Phillip Hartley Smith (Author)

Book Description

Publication Date: April 1, 2003

In 1983 the employees of Weirton Steel voted to take a 20% pay cut to save their jobs. Through an Employee Stock Ownership Plan, they purchased the ailing company. Full of hope and confidence, the workers believed their sacrifices would eventually secure their future.

Today Weirton’s stock is practically worthless, thousands of jobs have been eliminated, and the company’s officers and directors have been subject to multiple lawsuits. As members of top management made personal fortunes, the employee owners watched their net worth erode year after year. Long before Arthur Andersen’s incompetence became legendary, the firm’s auditors helped Weirton Steel’s management waste millions of the employee owners’ value.

Editorial Reviews

About the Author

Phillip Smith served on the Weirton Board for eleven years and publicly criticized its continual failure of prudent governance. In Board Betrayal, he shares a tale of irresponsibility, ignorance, conflict of interest, and deceit. Smith reveals what happens behind top management’s closed doors and self-serving corporate boardrooms and how the actions of a few in power can destroy the dreams of so many.

Product Details

• Paperback: 280 pages
• Publisher: Ladlesheet Press (April 1, 2003)
• Language: English
• ISBN-10: 0923568514
• ISBN-13: 978-0923568511
• Product Dimensions: 9 x 6 x 0.7 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #1,385,058 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

5 of 5 people found the following review helpful:

5.0 out of 5 stars Sad and Cautionary Tale, April 13, 2003

By A Customer

This review is from: Board Betrayal: The Weirton Steel Story: Failed Governance and Management Hand in Hand with Arthur Andersen: An Esop Fable (Paperback)

This story broke my heart. My family has served at Weirton Steel for over three generations from the ranks of the hourly to the in-house engineering staff, to the management team. The account of Phil Smith has been known for a while, but this is the first time I have seen it in print. Hopefully, business students will take these events to heart to prevent a future tragedy such as this.

3 of 3 people found the following review helpful:

4.0 out of 5 stars Sad, but true, June 8, 2006

By 

George J. Pandelios "Wow56" (Harrisburg, PA USA) - See all my reviews
(REAL NAME)   

This review is from: Board Betrayal: The Weirton Steel Story: Failed Governance and Management Hand in Hand with Arthur Andersen: An Esop Fable (Paperback)

I found Philip Smith's book to be a factual, detailed, and data-driven account of a promising company (and town) wrecked by unadulterated personal greed. While I have never met Mr. Smith, I do know several of the principles named in the book and Mr. Smith describes them accurately and honestly.

The book is a fascinating look at the behind-the-scenes behaviors of senior management. Unfortunately, it is not all that clear what lessons can be taken away from the event. Honesty and fair-dealing cannot be injected into scoundrels like a vaccine. And when a majority of board members decide to loot the corporation for their own gain, what can realistically be done?

I do know that the aftermath has been devastating to Weirton, and its future is very uncertain. And after living there during the glory days, it is very strange to come back and see the devastation that has become my little town.

2 of 2 people found the following review helpful:

5.0 out of 5 stars Phil Smiths courages book, November 19, 2008

By 

Bob Waskiewicz (Wintersville, Ohio United States) - See all my reviews

This review is from: Board Betrayal: The Weirton Steel Story: Failed Governance and Management Hand in Hand with Arthur Andersen: An Esop Fable (Paperback)

Phil Smiths courages book about the Betrayal of Weirton Steel is heartbreaking.
National Steel was one of the greatest Steel companys to work for in the 50's60's and 70's.
Most of my Uncles and cousins had a great life,with secure pay and early retirements.
Everyone thougth Esop would save the company,and for awhile it looked like it was,with profit sharing checks,and growing pay,untill the betrayal of the management hit the fan.