8. David Paul ran his Miami CenTrust Bank in the heady 1980s with an
appetite for personal luxury subsidized with dubious junk bonds and
shareholder money. Along with his extravagant home (monthly
mortgage payment: $60,921), he built the CenTrust Tower on Miami’s
skyline. The building was complete with gold-plated plumbing
fixtures in the executive suites, a single staircase that cost $1 million,
tons of green marble, a health club with mahogany lockers and a
reflecting pool on the 11
th
floor sky lobby, the first elevator stop above
the ground floor. Expensive painting adorned his office walls. Was Mr.
Paul acting in a manner pleasing to his shareholders? Explain his
behavior and a potential solution to this behavior.
