Expert Perspective
by Garry Rogers
|
Share/Save
March 22nd, 2010
Expert Perspective by Grahall’s OmniMedia Editorial Board
The March 12, 2010 article “Closer Look at Berkshire’s Executive Compensation Policy” author Ravi Nagarajan says: “Berkshire Hathaway’s 2010 Proxy Statement was released yesterday and… Mr. Buffett’s total compensation remained at $175,000 which included $100,000 of salary and $75,000 in director’s fees from the Washington Post… The $100,000 salary for Mr. Buffett and Mr. Munger has remained constant for 29 years, during which time inflation has eroded over 60 percent of the purchasing power of a dollar… Mr. Buffett has over 98 percent of his net worth in Berkshire while Mr. Munger’s family has over 80 percent invested in the company. Both men wish to set an example by ensuring that their fortunes move in lockstep with the results for investors…”
Although this stance is very admirable on the part of Messrs: Buffett and Munger, it is a formula that would be neither commendable nor wise in most other companies.
Continue reading “Walking on Water For the Rest of Us Mortals” »
Filed under: Expert Perspective
Tags: CEO Pay
Expert Perspective
by Garry Rogers
|
Share/Save
March 22nd, 2010
Expert Perspective by Grahall’s OmniMedia Editorial Board
The March 11, 2010 article from The Economist print edition (Cheques and balances: Efforts to reform how bosses’ salaries are set are unlikely to work) begins: “SPRING is in the air, bringing with it angry thoughts about executive pay. This year the economic downturn is adding extra emotion to the season’s familiar fury…There is even a new fad nicknamed the “pity bonus”, paid to bosses who failed to qualify for a big enough payout under the established bonus scheme due to the unforgiving economy. Mark Hurd, the boss of HP, was given an extra $1m bonus on top of the $15m he received under the firm’s annual incentive scheme to reflect the board’s view that he had not been “fully rewarded” for relative outperformance against competitors…”
(The article also bashed IBM, GE, Starbucks, BP and Goldman Sachs for their executive bonuses.)
Yes, the bonus numbers are very big, and with millions of Americans still unemployed, it appears there is a lot to be angry about. But on the other hand it is important to consider a few facts that might provide a more balanced perspective.
Continue reading “The Hurd Locker” »
Filed under: Expert Perspective
Tags: CEO Pay
Expert Perspective
by Garry Rogers
|
Share/Save
March 22nd, 2010
Expert Perspective by Grahall’s OmniMedia Editorial Board
In her MARCH 10, 2010 article for the Wall Street Journal (AIG’s Rankings Will Weigh on Pay) author Serena Ng says: “American International Group Inc. is basing its upcoming round of bonuses and incentive pay on its new “forced ranking” system that measures the performances of about 10,000 employees… to demonstrate to the public and the government that AIG is paying employees for their performance and not just for staying at the company.”
As US taxpayers and therefore part owners for the company, we hope AIG has carefully thought this through. Forced ranking systems are not “plug and play” type tools. The success of this methodology is highly dependent on how it is implemented. And when implemented improperly, it can create or exacerbate human resource problems. AIG has a boat load of those problems in that arena.
Continue reading “Rank and Yank… or Not” »
Filed under: Expert Perspective
Tags: forced rankings
Ask the Expert
by Robert Cirkiel
|
Share/Save
March 22nd, 2010
10:47 PM Sunday March 21st, 2010 Health Care Reform Passed the House with a Vote of 219 to 212. About 10 minutes later the “fixes” to the Senate bill pass by one vote more. As Yahoo News Blog “House Passes Second Historic Healthcare Vote” says:
“While the senate still has to weigh in on an amended bill, most observers think that shouldn’t be much more than a formality especially at this late stage of the process. At the very least, the House vote ensure that there will be a health care bill on President Obama’s desk, perhaps as early as the end of this week. And the president’s signature will set I motion the most dramatic change to American health care since Lyndon Johnson signed Medicare into law in 1965.
The bill, which the Congressional Budget Office says will cost $940 billion over the 10 years, is expected to cover 32 million Americans who are presently uninsured”
Now what? We asked Grahall’s Robert Cirkiel what’s next for employers. Here are Robert’s recommendations.
Continue reading “Now that Health Care Reform has Passed, What’s Next for Employers”” »
Filed under: Ask the Expert
Tags: Health Care Reform
The March 12, 2010 article “Closer Look at Berkshire’s Executive Compensation Policy” author Ravi Nagarajan says: “Berkshire Hathaway’s 2010 Proxy Statement was released yesterday and… Mr. Buffett’s total compensation remained at $175,000 which included $100,000 of salary and $75,000 in director’s fees from the Washington Post… The $100,000 salary for Mr. Buffett and Mr. Munger has remained constant for 29 years, during which time inflation has eroded over 60 percent of the purchasing power of a dollar… Mr. Buffett has over 98 percent of his net worth in Berkshire while Mr. Munger’s family has over 80 percent invested in the company. Both men wish to set an example by ensuring that their fortunes move in lockstep with the results for investors…”