Before wayward executives like Bernie Ebbers, Jeff Skilling, and Dennis Kozlowski were making headlines, there was Al Dunlap, the man nicknamed "Chainsaw Al" for his willingness to slash jobs to bolster his reputation as a cost-cutter.

Dunlap built a strong reputation turning around companies including Scott Paper and then selling them, but it all fell apart when got to Sunbeam. While the stock soared on the news of his hiring, Dunlap's egomaniacal style and obsession with short-term performance ultimately led to his his firing and the collapse and bankruptcy of Sunbeam.

He was charged with accounting fraud, and settled with the SEC for the paltry penalty of $500,000, and was also permanently barred from serving as an officer or director at a public company. He paid out millions more to settle class-action lawsuits brought by shareholders.

BusinessWeek journalist John Byrne was among the first to catch on Chainsaw Al's shenanigans, and it hardly made Dunlap a friend. Dunlap once said about Byrne that he "wouldn't piss on him if he was on fire".

Byrne has written an immensely enjoyable book about corporate malfeasance, greed, ego, and the dangers of turnaround artists obsessed with short-term performance. Tragically out of print, Chainsaw should be required reading for all investors looking to understand corporate governance, shareholder rights, and just plain horrible management.

Happily, you can pick up a copy used on Amazon.com starting at 1penny.

Book review: "Chainsaw: The Notorious Career of Al Dunlap in the Era of Profit at Any Price originally appeared on BloggingStocks on Tue, 16 Oct 2007 19:39:00 EST. Please see our terms for use of feeds.