Expert Perspective from Grahall’s Editorial Board
A couple of points in Gary Hamel’s sales pitch (for Umair Haque’s new book, “The New Capitalist Manifesto: Building a Disruptively Better Business”) disguised as a treatise on the threats to capitalism (Capitalism is Dead. Long Live Capitalism, September 21, 2010 Wall Street Journal) caught the attention of our Editorial Board.
Continue reading “The Business of Business is Business” »
Although more companies are insisting on clawback provisions in executives’ contracts, their effectiveness as a tool to recoup bonuses and other compensation when things go bad remains to be seen. Some critics view them as legally questionable and point to, among other obstacles, conflicts with state wage laws that could be used to stymie a company’s attempt to reclaim pay.
Pay czar Kenneth Feinberg disputed claims that limiting executive pay will push companies’ top talent to firms that have no restrictions on compensation, telling CNBC he’s seen no hard evidence of this phenomenon.
Similarly, he said that regulating pay has had no negative effect on states’ tax revenues, calling both arguments a form of “spin.”
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At least seven of the biggest global investment banks reduced the pay they doled out to their employees last year relative to revenue, according to their financial results.HSBC Holdings PLC cut its investment-bank compensation-to-revenue ratio to 22%, from 36% in 2008; JPMorgan Chase & Co. cut its to 33% from 62%, and Royal Bank of Scotland Group PLC’s shrank to 27% from 76%.