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Archive for the ‘Corporate rules’ Category

Republican takes aim at your right to know how high CEO pay is compared to typical workers

Friday, February 10th, 2017

As of January 1, companies will have to make public how much their CEOs make compared to what their average workers make. They don’t like that rule so much — enacted thanks to Dodd-Frank — and they might be able to get it killed.

On Monday, the acting chairman of the Securities and Exchange Commission (SEC), Michael Piwowar, called for reconsideration of the rule that went into effect on January 1, hinting that it could be reversed.

“[I]t is my understanding that some issuers have begun to encounter unanticipated compliance difficulties that may hinder them in meeting the reporting deadline,” he wrote. So he called for a new period of public input over the next 45 days, after which he will direct the SEC staff to “reconsider the implementation of the rule based on any comments submitted and to determine as promptly as possible whether additional guidance or relief may be appropriate.”

Translation: Companies don’t want people to know how much more their CEOs make than the median worker, and rather than admitting that they don’t want people to know that, they’re calling it “unanticipated compliance difficulties.”

This rule isn’t something Republicans can just kill off immediately, but that’s clearly the direction they’re headed. Businesses have a lot to hide, after all. Like how CEOs make 276 times more than typical workers, while the corporate world lobbies against policies that benefit workers, like paid sick leave, paid family leave, or increased minimum wage.

Meanwhile, Donald Trump is stocking his cabinet with former CEOs.

This article originally appeared at DailyKOS.com on January 28, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Women Haven’t Gained A Larger Share Of Corporate Board Seats In Seven Years

Wednesday, December 12th, 2012

In addition to grappling with a persistent pay gap, working women also have to deal with extreme difficulty ascending to powerful corporate positions, according to a report by the research organization Catalyst. As Bryce Covert explained at The Nation:

Women held just over 14 percent of executive officer positions at Fortune 500 companies this year and 16.6 percent of board seats at the same. Adding insult to injury, an even smaller percent of those female executive officers are counted among the highest earners—less than 8 percent of the top earner positions were held by women. Meanwhile, a full quarter of these companies simply had no women executive officers at all and one-tenth had no women directors on their boards. […]

Did this year represent a step forward? Not even close. Women’s share of these positions went up by a mere half of a percentage point or less last year. Even worse, 2012 was the seventh consecutive year in which we haven’t seen any growth in board seats and the third year of stagnation in the C-suite.

Overall, more than one-third of companies have no women on their board of directors. But economic evidence shows that keeping women out of the board room is a mistake. According to work by the Credit Suisse Research Institute, “companies with at least one woman on the board would have outperformed in terms of share price performance, those with no women on the board over the course of the past six years.”

This post was originally posted on Think Progress on December 11, 2012. Reprinted with Permission.

About the Author:  Pat Garofalo is the Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

When Your Hat is Gray, Not Black or White

Monday, December 13th, 2010

Image: Bob RosnerThe arbiter of all things popular, Google, last Saturday said that Internet search was dominated by three topics: the suicide death of ponzi scam king Bernie Madoff’s son, the 2010 Army Navy football game and Santacon 2010 in New York City.

Okay, I probably weakened my point about Mark Madoff by bringing up the football game and Santacon, but how do you ever pass on a Santacon reference? I certainly couldn’t.

Mark Madoff’s life is simultaneously, something that very few people can relate to and also an amazing prism for everyone trying to navigate to choppy waters of today’s workplace. Before I explain, let me give a quick refresher course.

Madoff’s dad created a sink hole that eventually swallowed relatives, friends and some top charities. The more you think about what happened, the more you think that Bernie could be nominated as the top sociopath of this century. Okay, it’s early in the century, but you don’t see evil like that very often.

But remember, it was Mark who turned in his dad to authorities. Okay, some could argue that he saw it all coming and called the cops earlier, but at least he finally put an end to any additional financial bleeding.

The narrative immediately after Mark’s suicide is that it was timed with the second anniversary of the scam being discovered and by the inclusion of Mark’s kids in the lawsuits to recovery money from people who profited from Bernie’s evil finally pushed him over the edge.

Unemployable, disgraced and facing the prospect of years of litigation for everyone who shared his family name and friends you can understand the desperation. But the goal of this blog isn’t to make you feel sorry for Mark. It’s to make you aware of the ever present law of unintended consequences.

Sure, Mark knowingly or unknowingly profited from his father’s business ventures for years. He held high positions in the company. And yes, some can argue that there were actually legitimate, money making components of the Madoff business, in addition to the ponzi scam.

But once the enterprise started to crumble, the guilty, the innocent and everyone in between got painted by the same broad brush of shame and retribution.

I actually applaud the attempts to recover money for the people who lost everything. And I understand the scorn that people feel who never had anything to lose but who were asked to feel sorry for these rich people who are crying over their loss of stature and sustenance.

What’s the point for the rest of us? The importance of avoiding questionable financial dealings whenever you see them. From Enron to Lehman, the rule of too good to be true still applies.

About The Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via bob@workplace911.com.

The Entitlement Poster Child for 2010

Monday, August 9th, 2010

Image: Bob RosnerHave you heard about Mark Hurd, the superstar who turned around HP? He was on track to earn $100 million payday for his efforts. Until he was shown the door last week.

Turns out that he had falsified payments to a contractor. Corporate sleuths determined that approximately $20,000 of expenses reports relating to this contractor were in question.

Okay, here is a guy earning millions of dollars in annual compensation. Millions. We’re still not exactly sure the nature of the relationship with the contractor, but I’m guessing she’s cute.

Hurd is married. Strike one.

Hurd clearly has some boundary problems between what’s work related and what isn’t. Strike two.

But the strike three is still hard to fathom. Hurd fudged and faked it so the company would pick up the expenses for wining and dining his contractor BFF.

Why does a guy earning millions of dollars fake expense reports that amount to chump change given his salary?

Entitlement.

To me this exemplifies everything that’s wrong with corporate leadership today. These are not people who are upholding a corporate trust. These are people who believe that their needs should be taken care of by their corporate benefactor.

Who have such an exalted view of their own contributions that there is nothing that they’d be too squeamish about charging to the company.

The best part of all of this? Hurd was repeatedly described by the press as being a “button downed” kind of guy. If this is the button-downed one, imagine the corporate swingers.

I don’t really care what Hurd did. But I find it interesting how many corporate executives talk about entitlement as a problem for their employees. But I think this could lead to a great new catch phrase for executive malfeasance, “Have you Hurd?”

About The Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via bob@workplace911.com.

What do you believe about work that is wrong?

Monday, June 14th, 2010

Image: Bob RosnerAfter fifteen years of writing Working Wounded/Workplace911, I’ve concluded that there are a lot of myths about work. I thought it would be fun to tackle some of the bigger ones in this week’s blog. Check out my list below and send me some of your favorites.

It’s impossible to be overpaid when someone else signs the paycheck. Let me offer a short translation of this rule—as long as someone is willing to pay you a ridiculous amount of money to work for them, then you aren’t overpaid because they have established a market for your services. I disagree. Corporate salaries are absurd. Cost cutting, layoffs and a myriad of other organizational sacrifices should float more than just the boats of the CEO and a few top executives. I’m no Marxist, CEOs do deserve a big paycheck when they are successful. But this escalator only seems able to go up.

Greed is good. The biggest problem here is that when Oliver Stone came up with this mantra for his Gordon Gekko character in the movie Wall Street it was meant as parody. Yet I hear some variation of it whenever I talk to traders, salespeople, etc. Henry Ford, hardly a commie himself, once said that only a fool holds out for the last dollar. I think wretched excess is a terrible way to run a company.

The bigger the jerk, the better the boss. Probably my favorite quote on management came from President (and General) Dwight Eisenhower. He once said, “Hitting people over the head isn’t leadership, it’s assault.” Sure jerks do get your attention and possibly results over the short term. But most employees will flee at the first chance they get. There are just too many sane bosses out there to continue to slave away for a jerk.

You’ve got to be first to market. Microsoft seems to me to be the only company that consistently puts second-rate products on the market and lives to tell the tale. It worked for a long time until Apple recently passed them in market capitalization. The rest of us have to pick our spots and often the first to market position can’t justify launching a crappy product. So it often pays to wait.

Innovation is the middle name of American corporations. Despite rising productivity, I believe that corporations in the U.S. are running on fumes. Don’t believe me? Listen to most people talk about the management of their companies. It’s not a pretty sight. I see far more innovation right now coming from abroad and from the not-for-profit sector and I think it’s time that corporations started walking their talk.

Corporations are drowning in regulation. Tyco, Enron, WorldCom, etc. left in their wake Sarbanes Oxley and a host of other regulations. Undoubtedly Lehman, Goldman Sacks, etc. will leave their mark too. There is a lot of talk now about how corporations are being held back by senseless regulations. I hate filling out government forms as much as the next guy, but these laws came into place because of abuse by corporations. And in order to maintain the trust of the average investor these regulations need to remain in effect, no matter how much whining you hear from big business.

The bottom line isn’t just the bottom line. If I’ve learned one thing as an observer of business and the founder of four corporations, it’s that there are many bottom lines for a business. In addition to economic there are also social and environmental considerations. The financials really only are a part of the picture. The sooner that corporations take a broader view of the bottom line, the sooner they’ll begin to fully reach their potential.

About the Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via bob@workplace911.com.

How to Date a Corporation: Dating Rules for a Post-Citizens United World

Thursday, January 28th, 2010

The Supreme Court recently determined that corporations are entitled to freedom of speech because they are legally persons. The ramifications of this decision, Citizens United v. Federal Elections Commission, cannot be overstated: it introduces an entirely new and untapped population into the dating pool.

Chances are you’ve never dated a corporation before. But don’t be intimidated. This can be a fun and exciting opportunity… as long as you follow the corporation-dating rules.

1. Consider your options. There are a lot of corporations out there. Is this really the best corporation out there? Is this corporation “the one?” Or should you keep looking?
2. Don’t seem too eager to get involved. Remember, corporations are predatory by nature and enjoy a chase.
3. Do a background check. What kind of relationships has this corporation had in the past? What is the corporation’s history
4. Investigate the company the corporation keeps. Who is on its board of directors? Have any been indicted?
5. Check out the corporation’s assets and figures. How do they look? Are they appealing to you?
6. Say that you’re fiscally conservative but socially liberal. Corporations find this very sexy.
7. Make sure you wait before you give up any of your assets. Corporations lose interest when you give it up right away.
8. Don’t over invest. Nothing hurts more than giving without getting.
9. Resist the “urge to merge.” Mergers often look appealing but they tend to be messy and almost always hurt party.
10. Assume the worst. Corporations have a one track mind and they can’t wait to get their hands on your goods.
11. And last but not least…Protect yourself. Corporations can be very reckless and you never really know how many people this corporation has screwed.

*This post originally appeared in Working Life. Reprinted with permission.

About the Author: Katie Harper is a co-founder of Laughing Liberally, a political comedy group, with whom she performs regularly at venues including Netroots Nation (the convention formerly known as Yearly Kos). Katie blogs for Huffington Post, TakePart, 23/6, Nerve, Culture Kitchen, and Campus Progress. Katie is also an Artistic Director and Comedy Curator at The Tank, a non-profit performing arts space for emerging artists. Her award winning documentary, La memoria es vaga, about historical memory in Spain, has been screened throughout Spain and the U.S. Katie is currently developing a one-woman show and a documentary film about her summer camp, Camp Kinderland, and their “peace Olympics” games. For more information, check out http:// katiehalper.com

How Things Really Get Done

Monday, December 14th, 2009

Image: Bob RosnerOne of the most creative bits of problem solving I’ve ever heard of came during Hurrican Katrina. In the French Quarter, Addie Hall and Zackery Bowen found an unusual way to make sure that police officers regularly patrolled their house. Ms. Hall, 28, a bartender, flashed her breasts at the police vehicles that passed by, ensuring a regular flow of traffic (from the New York Times).

I’m a fan of New Orleans. And let’s face it, if you had gone through the hell of hurricane Katrina, would you be able to draw on years of experience at Mardi Gras to get the police attention you needed? Ms. Hall, like so many residents of the Big Easy, has the most creative problem solving skills I’ve ever seen.

Ms. Hall also reminds us that there are the ways that things are supposed to get done and the ways that they actually get done. I’m not suggesting that flashing is a career enhancing move for most of us. But there are times at work, and in life, where creativity and bold action are not only called for, they’re a requirement.

This reminds me of a story that I heard as a graduate business student. Our professor told us that he wanted to talk to people who actually implemented programs in corporations. So he arranged a meeting with no consultants, authors or other hangers on. He only allowed corporate doers in the room. He asked them to tell success stories and he marveled at how the techniques for getting things done in the real world had little resemblance to what was being taught in MBA programs.

For example, there was the change agent who tried to get his program implemented for years with no success. He’d long since given up. Then one day he was having lunch with his friend, the company speechwriter. The topic of his failed program came up. He told the sad story of defeat after defeat on the corporate battlefield. Cut to the CEO two weeks later announcing his latest initiative, the change agent’s program. One conversation with the speechwriter breathed more life into his program than years of banging his head against the corporate hierarchy.

For every rule of how things should get done in organizations there are often at least two exceptions. That’s why it’s so important to get to know the network of doers in your organization. They’re in there, but chances are that they’re operating beneath the radar. So you’re going to have to go looking for them. Once you get their confidence, they’ll have many stories that will both surprise you and teach you new ways to get from point A to point B within your organization.

About the Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. If you have a question for Bob, contact him via bob@workplace911.com.

What Do You Believe About Work That Is Wrong?

Monday, October 12th, 2009

After fifteen years of writing Workplace911 and its predecessor Working Wounded I’ve concluded that there are a lot of myths about work. I thought it would be fun to tackle some of the bigger ones in this week’s blog. Check out my list below and send me some of your favorites.

It’s impossible to be overpaid when someone else signs the paycheck. Let me offer a short translation of this rule—as long as someone is willing to pay you a ridiculous amount of money to work for them, then you aren’t overpaid because they have established a market for your services. I disagree. Corporate salaries are absurd. Cost cutting, layoffs and a myriad of other organizational sacrifices should float more than just the boats of the CEO and a few top executives. I’m no Marxist, CEOs do deserve a big paycheck when they are successful. But this escalator only seems able to go up.

Greed is good. The biggest problem here is that when Oliver Stone came up with this mantra for his Gordon Gekko character in the movie Wall Street it was meant as parody. Yet I hear some variation of it whenever I talk to traders, salespeople, etc. Henry Ford, hardly a commie himself, once said that only a fool holds out for the last dollar. I think wretched excess is a terrible way to run a company.

The bigger the jerk, the better the boss. Probably my favorite quote on management came from President (and General) Dwight Eisenhower. He once said, “Hitting people over the head isn’t leadership, it’s assault.” Sure jerks do get your attention and possibly results over the short term. But most employees will flee at the first chance they get. There are just too many sane bosses out there to continue to slave away for a jerk.

You’ve got to be first to market. Microsoft seems to me to be the only company that consistently puts second-rate products on the market and lives to tell the tale. The rest of us have to pick our spots and often the first to market position can’t justify launching a crappy product. So it often pays to wait.

Innovation is the middle name of American corporations. Despite rising productivity, I believe that corporations in the U.S. are running on fumes. Don’t believe me? Listen to most people talk about the management of their companies. It’s not a pretty sight. I see far more innovation right now coming from abroad and from the not-for-profit sector and I think it’s time that corporations started walking their talk.

Corporations are drowning in regulation. Tyco, Enron, WorldCom, etc. left in their wake Sarbanes Oxley and a host of other regulations. Undoubtedly Lehman, Goldman Sacks, etc. will leave their mark too. There is a lot of talk now about how corporations are being held back by senseless regulations. I hate filling out government forms as much as the next guy, but these laws came into place because of abuse by corporations. And in order to maintain the trust of the average investor these regulations need to remain in effect, no matter how much whining you hear from big business.

The bottom line isn’t just the bottom line. If I’ve learned one thing as an observer of business and the founder of four corporations, it’s that there are many bottom lines for a business. In addition to economic there are also social and environmental considerations. The financials really only are a part of the picture. The sooner that corporations take a broader view of the bottom line, the sooner they’ll begin to fully reach their potential.

About the Author: Bob Rosner is a best-selling author and award-winning journalist. His web site, workplace911.com, contains a comprehensive archive of strategies for surviving today’s workplace. He is a fan of Workplace Fairness and can be reached via bob@workplace911.com.

Why I am Pro-Corporate

Wednesday, July 29th, 2009

I am pro-corporate. I’ll go a step further with that and proclaim that I believe that there are no bad corporations, and that I haven’t seen any corporations do anything wrong.

I see the way you are looking at me. I’d better explain.

The reason I say there are no “bad” corporations is because corporations are not sentient beings that can “do” things or that can be good or bad. They can’t make decisions. Corporations are just a bundle of contracts that allow groups of people to more easily raise capital and amass resources. Corporations are things, like chairs, and things do not make decisions, any more than a chair does. Corporations are tools and tools are neither good nor bad.

When I say I am pro-corporate, this is what I mean: The things that the corporate legal structure enables people to do are good for society. This is why We, the People decided to enact the laws that created corporations. If we want to be able to accomplish things on a large scale, like build a railroad or airports and airplanes or skyscrapers – or solar power plants to replace coal power plants – we want to enable people to more easily raise the necessary capital and amass the resources needed to get the job done. The legal structure of the corporate form of a business accomplishes this.

Corporations, a bundle of contracts, don’t “do” anything, people do. And that is why this discussion is important right now. We are looking here at how to restructure our economy, but before we can do that, we have to correctly identify what went wrong. We have to understand who the good and bad actors were.

So what are some of the things that companies have been doing that we as progressives think should change? Let’s use the highly-publicized example of Wal-Mart and their low wages and benefits and Chinese imports. Wal-Mart always complained about being cast as the bad-actor. They said that if Wal-Mart raised wages and benefits and their competitor Target didn’t, then they would be at a competitive disadvantage and Target would take over the business. And, by extension, any company that tries to “do the right thing” is immediately at a disadvantage to a company that does not.

Looked at this way, if we make Wal-Mart raise wages and Target doesn’t, then not only is Wal-Mart in trouble as a company but now we’re starting all over again trying to get Target to raise wages. And if THEY do so, then along comes K-Mart or Costco or a new company X-Co to pay the low wages, charge lower prices and take away the business. This feels like it is going around in a circle, trying to fix a problem in one place and the pressures of the system immediately make the problem appear somewhere else.

I think blaming companies for the things they “do” also places a lot of stress on people inside of them who might agree with us, and even can alienate them from otherwise supporting progressives. People in the corporate world often feel trapped because the rules of the game require them to engage in what we think of as bad behavior. These are good people who would be very helpful to us in making the correct changes but they feel forced by the system to do the things they do. They are pulled two ways. Executives at Wal-Mart on the one hand can be want to raise wages, and on the other hand have a responsibility to compete with Target.

So what am I getting at here? The companies are not the problem, the rules we set up for them are. Companies operate on a playing field on which the rules of the game are supposed to be decided by US. We, the People are supposed to set up the ground rules and then the companies are supposed to follow those rules. Wal-Mart followed those rules. If we didn’t like the wages and benefits that companies pay, why don’t we change the rules and tell them they all have to pay higher wages and provide better benefits?

Now we’re getting somewhere. Many progressives have been trying to get companies to “behave” in better ways, and haven’t been getting much done — I think due to not correctly identifying the problem. The real problem is that we haven’t set up the rules of the playing field to require these companies – all of them – to provide good wages and benefits, etc. It is our job to regulate what these corporations do. So why didn’t we, through our government, change the rules for all the companies, so they all had a level playing field and clear rules? Identifying why we have not fixed the rules is the path to fixing the larger problem.

What has been happening is that a few people in the bigger companies have been using the resources of those big corporations to influence our system and set the rules of that playing field to give an edge to their companies. They do this so they can personally gain.

This is where we need to focus to fix the corporate system. There should be no way for people in companies to have any say whatsoever in how the playing field on which they operate is set up. How to accomplish this is a subject for future posts.

As I said above, corporations are just a tool, like a hammer. But a hammer can do a lot of damage if a person hits you upside the head with it. That is what we have to stop: a few people using corporate resources and hitting us upside the head.

Oh, and for the record, I am pro-chair, too, though my wife will probably insist I am a pro-couch partisan.

Dave Johnson:Dave is at Fellow at Campaign for America’s Future and a Fellow at the Commonwealth Institute.

This article originally appeared at Blog for Our Future and is reprinted here with permission from the author.

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