economics

Are CEOs really overpaid and mostly not worth it? Part 2

Posted by on Jan 16, 2012

Last week, in Part 1 of this topic, we introduced the following questions: Are the highest paid CEOs really worth what they’re being paid? And does paying top dollar for a CEO add to the bottom line, where it really matters? The answers, supported by studies cited last week, are that the Fortune and FT 500 firms with the highest paid CEOs experienced negative abnormal returns over the subsequent 5 year period. (See details in Part 1 of this report.) This week we’ll explore more data and review opinions from some of the top researchers in the field of executive pay. We’ll answer 2 key...

Read More

Potential for a banking crisis in China – planning for risk

Posted by on Apr 26, 2011

Predictions are for suckers . . . Let’s start with a confession and a caution.  This article includes a discussion about the risk of a banking crisis in China. But we aren’t predicting China will experience a banking crisis in the next few years. Nor are we predicting it won’t. We’re not in the business of making predictions. That was the confession.  And now for the caution. We don’t think strategic planning teams should be in the prediction business, either. The conditions that could lead to catastrophe often don’t, and predictions about economics and society are notoriously...

Read More