Tom Gosling writes: So what is a CEO really worth, and can that ever be £4m a year? Two rather morbid papers shed light on the question by looking at the market reaction to sudden CEO deaths. Many methods for looking at the impact of CEOs on company performance suffer from the problem that it…
Lloyds faces shareholder revolt as CEO’s pay is 95 times that of average worker | Business | The Guardian
Lloyds Banking Group is facing the prospect of a shareholder rebellion after giving its chief executive, António Horta Osório, a pay packet that is nearly 100 times larger than the average worker’s at the bank.The advisory group Institutional Shareholders Services (ISS) has recommended a vote against the bank’s remuneration report at the annual general meeting…
IRRCi Research Paper Competition 2018
The Investor Responsibility Research Center Institute (IRRCi) has opened its seventh annual competition for research that examines the interaction between the real economy and investment theory. Practitioners and academics are invited to submit research papers by Friday, October 19, 2018, for consideration by a blue-ribbon panel of judges with deep finance and investment experience. Two…
Can Corporations Be Held to the Public Interest, or Even to the Law? by David A Ciepley :: SSRN
We support other options including replacement of the board (and debarment of directors from serving on any other boards), adoption of governance improvements including proxy access, majority vote requirements, and separation of CEO and Chair. We are not persuaded that the German system (which has so far shown no advantage over the US system) would…
To Absolutely No One’s Surprise, Directors Think they Are Doing Fine in Setting CEO Pay
We are shocked, shocked, at the findings of a completely superfluous new study showing that directors think they are paying CEOs fairly because it is a really, really challenging job. Fortune 250 directors strongly agree that CEOs in their industry have “specific skills that are extremely hard to replicate,” rating this statement a 7.5 on…
Rewarding or Hoarding? Representative Keith Ellison on the Pay Ratio Disclosures
For the first time this year companies have had to disclose the pay ratio, comparing the salary of the CEO to the median of the workforce. [See our previous post on the charge by Ralph Nader and Steven Clifford that the gap is far wider than these disclosures indicate.] Representative Keith Ellison (D-Minnesota) has issued…
Do Institutional Investors Drive Corporate Social Responsibility? International Evidence
Honnes F. Wagner writes: We test for a relation between share ownership and firms’ E&S performance. It is hard to dismiss the hypothesis that E&S investments are beneficial to shareholders if they are a driving force behind firms’ E&S choices.We examine whether shareholders drive E&S performance for firms around the world, since pressure for E&S…
Tronc pays Ferro $15 million for unfulfilled consulting work – Joe Cahill Business Blog – Crain’s Chicago Business
There are excessive executive compensation packages, and then there are outright giveaways. Put Tronc’s recent payment of $15 million to former Chairman Michael Ferro in the latter category.The publisher of the Chicago Tribune and other newspapers disclosed last week that it accelerated payment of $15 million in fees under a three-year consulting agreement with Ferro…
Netflix Revolutionizes Board Meetings
Beyond PowerPoint — making meetings meaningful, and integrating the board with the company’s operations and executives at Netflix: At most companies, directors have a less complete understanding of the company than executives because of their limited exposure to day-to-day activities. The format of the information they receive does little to overcome this information deficit. The…
CEOs should disclose their real wages. The real pay gap is [even more] maddening.
This year’s first pay ratio disclosures are not entirely accurate, according to Ralph Nader and Steven Clifford in USA Today, because they omit the biggest category of CEO pay, stock and option grants. Apity reported that CEO Kevin P. Clark’s total compensation was $13,800,347. He also received $17,699,452 from exercising stock option, an amount not…
McKesson Board Can’t Dodge Opioid Shipment `Red Flags’ Suit – Bloomberg
Some McKesson Corp. directors must face an investor lawsuit accusing them of failing to honor promises to ensure internal systems for spotting suspicious opioid shipments functioned properly. Two shareholders of the San Francisco-based company can press claims the distributor’s board was asleep at the switch when it came to overseeing such shipments after a 2008…
Carillion bosses drove construction firm off a cliff, say MPs – BBC News
The UK firm Carillon has collapsed, declaring bankruptcy as its share price is just above zero. The “integrated support services business” held about 450 governmental contracts, from school meals to maintenance, construction, and traffic control. Last year, it issued three profit warnings in five months and wrote off more than £1 billion. In a damning…
