The Battle for the Soul of Capitalism.

• Author: Marshall, Jeffrey
• Position: BookSHELF

The Battle for the Soul of Capitalism. By John C. Bogle. Yale University Press, 260 pages. $25.

John Bogle--who founded the mutual fund giant Vanguard Group many years ago and is arguably the dean of the mutual fund industry--has not faded gently in his retirement. He's been a vocal presence in forums and op-ed columns, opining about mutual fund issues, investor concerns and corporate governance, always seeming to ask if those in authority can't act more wisely and nobly.

In the introduction to his new book, Bogle writes that recent "aberrations" like the quantum leap in CEO pay and earnings managed to meet inflated Wall Street expectations can be laid to "the gatekeepers we trusted to protect investors--legislators, regulators, rating services, attorneys, public accountants and, most importantly, corporate directors ... They failed to intercede appropriately on behalf of the shareholders."

Bogle divides the book into three principle parts--Corporate America, Investment America and Mutual Fund America. Each, he implies, went wrong in different yet related ways. While he excoriates corporate boards for too often failing to adequately exercise their responsibilities of managerial oversight, he blames...