From VEA Vice-Chair Nell Minow: I’ve been a big fan of Bennett Stewart’s approach to evaluating the financial performance and health of companies for a long time, so I was delighted when his company, evaDimensions, made a free version of its Corporate Performance Index available for investors, executives, board members, academics, and anyone else who is…
Tag: risk
Corporate Secretary | Regulators pushing more personal liability for senior officers, Thomson Reuters says
A pervasive belief that regulators have not held senior executives accountable for conduct and events that led to the financial crisis is fueling an increased emphasis on personal liability in the financial services industry. As a result, compliance officers at several financial institutions have faced fines, banishment, suspension, or firing for their alleged roles in…
Safety Suffers as Stock Options Propel Executive Pay Packages – The New York Times
Outsize executive pay packages have frequently been a flash point for stock market investors. Lavish executive compensation at publicly traded companies should be a significant concern for consumers, too. That’s the message of a new study by three academics at the University of Notre Dame. Their research focuses on companies that rely heavily on stock…
Adam Turteltaub’s Insightful Comments on Group Dynamics and Compliance-Think
It’s a good reminder of what happens whenever group dynamics take over. As individuals we tend to be attuned to those around us. But when we’re in a group, we tend to get drawn into the dynamics of the group and lose track of other people, and even resentful when others intrude. We’re too caught…
Remarks by Thomas J. Curry, Comptroller of the Currency, Before the Prudential Bank Regulation Conference
Comptroller of the Currency Thomas J. Curry emphasized the importance of Dodd-Frank and of active, engaged, and informed boards of directors. The second component of our heightened standards guidelines pertains to the responsibilities of large banks’ boards of directors. It provides that bank boards should have at least two independent directors and that all board…
How Does Executive Compensation Affect Bank Risk Taking: Evidence from FAS 123R by Yongqiang Chu, Tao Ma :: SSRN
We examine how executive compensation affects bank risk taking in mortgage lending using exogenous variations in stock option grants generated by the FAS 123R, which requires all firms to expense options. Using a difference-in-differences approach, we find that banks that did not expense options before FAS 123R (treated firms) significantly decreases their approval rates of…
