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tsuomela : ceo   16

Omniorthogonal: The Great Man Theory
Second: boy, do Americans love them some CEO, especially an arrogant one. For a bunch of freedom-loving rebels there is certainly a strong streak of servility in the national character.
JobsSteve  death  macintosh  apple  ceo  power 
october 2011 by tsuomela
The Business Platform | The American Prospect
Their [Meg Whitman and Carly Fiorina] candidacies rest on two things: the copious amounts of cash each are willing to spend (Whitman has already dropped a remarkable $71 million of her own money into her campaign, before the general election has begun), and the claim that business leaders will perform better in political office than "career politicians." This is a remarkably common assertion, but one that is almost never scrutinized. Give it a few moments of thought, however, and you realize that it's almost entirely bogus.
politics  business  leadership  ceo 
june 2010 by tsuomela
Superstar CEOs - MIT Press Journals - Quarterly Journal of Economics - Abstract
Compensation, status, and press coverage of managers in the United States follow a highly skewed distribution: a small number of “superstars” enjoy the bulk of the rewards. We evaluate the impact of CEOs achieving superstar status on the performance of their firms, using prestigious business awards to measure shocks to CEO status. We find that award-winning CEOs subsequently underperform, both relative to their prior performance and relative to a matched sample of non-winning CEOs. At the same time, they extract more compensation following the awards, both in absolute amounts and relative to other top executives in their firms. They also spend more time on public and private activities outside their companies, such as assuming board seats or writing books. The incidence of earnings management increases after winning awards. The effects are strongest in firms with weak corporate governance.
economics  research  ceo  income  pay 
november 2009 by tsuomela / Comment / Opinion - How bank bonuses let us all down
Here you can see that this mismatch between the bonus payment frequency (typically, one year) and the time to blow up (about five to 20 years) is the cause of the accumulation of positions that hide risk by betting massively against small odds. As traders say, they have the “free option” on their performance: they get the profits, not the losses. I hold that this vicious asymmetry is the driving factor behind investment banking.
economics  crisis  bailout  finance  financial-services  incentives  talent  rewards  ceo  income 
february 2009 by tsuomela
Stumbling and Mumbling: Bonuses, power and inequality
why have banks paid [giant bonuses] for so long?
The popular answer is that banks need to attract the best talent. Yeah, right..... Traders must be bribed not to plunder the firm. If you don’t pay them millions, they’ll sell the banks’ assets cheaply to rival firms for which they then go and work. They are paid fortunes not because they have skill, but because they have power.
economics  ceo  executives  principal-agent  money  pay  corruption  gloom-and-doom  power  bonus 
february 2009 by tsuomela
SSRN-Executive Compensation as an Agency Problem by Lucian Bebchuk, Jesse Fried
This paper provides an overview of the main theoretical elements and empirical underpinnings of a managerial power approach to executive compensation. Under this approach, the design of executive compensation is viewed not only as an instrument for addressing the agency problem between managers and shareholders but also as part of the agency problem itself.
economics  money  labor  work  ceo  pay  principal-agent  executives  bonus 
february 2009 by tsuomela
naked capitalism: New York Times Pulls Punches On Wall Street Bubble Era Pay
Re-read the key phrase: "pay themselves more than their firms are worth and then default on their debt obligations." This has happened en masse in what formerly were investment banks who have now become wards of the state.
finance  crisis  2008  capitalism  fraud  money  ceo 
december 2008 by tsuomela

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