You might think a corporate CEO's job is to maximize his or her firm's profits and create value for the shareholders, but in practice, say business researchers, it isn't always quite that simple. Depending on the types of compensation they receive, CEOs often act in ways that run counter to shareholders' interests, taking excessive risks, depressing profits and driving down stock prices. The woes — and horrendous PR — currently afflicting Wall Street may be a case in point. Even President Obama has joined in the chorus decrying executive compensation packages, calling the amounts given ... Read More
A Nation of Savers?
November 12, 2008 • By • Leave a Comment
If the 1946 film classic It’s a Wonderful Life depicts the conservative, community-focused financial ethos of an earlier generation, today’s overriding fiscal virtues — spending through debt and self-expressive consumption — might be defined best by the get-rich-quick TV game show Who Wants to Be a Millionaire. “Americans once had boundaries and standards of financial behavior imposed upon them by local banks and other community institutions. We don’t anymore, yet we need to re-instill in Americans the importance of thrift, of living more responsibly,” said Robert D. Manning, ... Read More
Tapping Academe to Avoid the Next Flailout
October 3, 2008 • By • 1 Comment
Two respected Washington, D.C. lawyers — tax expert, finance watchdog, media adviser and occasional Miller-McCune contributor Marty Lobel and Joseph Goldstein of the Mayer Brown law firm — are offering an intriguing way to prevent future financial meltdowns of the subprime sort: A team of academic experts would survey the financial field and warn government of impending problems before they happen. Here's the nut of the Lobel-Goldstein argument, presented on the Nieman Watchdog/Nieman Reports site: While everyone is uncertain about what is coming next, we ought to think about what we ... Read More
