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Tag Archives | Corporate Leadership

Stock buybacks can be a harmful ‘sugar high’

By Mickey Kim (originally published by Indianapolis Business Journal) - CEOs are routinely bashed for their outsized pay, but companies are under intense pressure from Wall Street to produce steady, predictable gains in earnings per share every calendar quarter (i.e. 13 weeks). Pity the poor CEO who becomes the target of an “activist” investor who might […]

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How ‘short-termism’ is hurting the US economy, in 3 charts

By James Pethokoukis (originally published by American Enterprise Institute) - Earlier this year, BlackRock boss Laurence Fink wrote an open letter to Corporate America bemoaning its short-termism: “Too many companies have cut capital expenditure and even increased debt to boost dividends and increase share buybacks.” Economist William Lazonick (h/t to Joshua Brown) cites Fink in his Harvard […]

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The Financial Times slams ‘the world’s dumbest idea’

By Steve Denning (originally published by Forbes) – Good news! The Financial Times has come out forcefully against maximizing shareholder value. The article declares that we have made a mess of the way companies are run. “Almost nothing in economics is more important than thinking through how companies should be managed and for what ends. […]

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Happy irony day

By Bob Dunn (originally published by BobDunn.com) – Thirty-five years ago I was a newspaper reporter covering events surrounding the United Steelworkers Union and the American steel industry in Wheeling, W.Va. and Pittsburgh. Steelworkers had physically demanding, dangerous jobs, but their union was powerful and extracted (especially in today’s terms) very attractive wages and benefits for […]

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Stock buybacks surge: Is that a good thing?

By John Waggoner (originally published by USA Today) – According to Wall Street legend, a speculator named Daniel Drew got his start by driving cattle into Manhattan, back when there really were cattle drives there. Just before they got to the market, he’d let his skinny, rangy cattle drink as much water as they wanted after […]

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One of CEOs’ most powerful tools is starting to look dull

By Rana Foroohar (originally published by Time Magazine) – A lot has been made in recent years of the record amount of corporate cash on the balance sheets–around $2 trillion in U.S., and the same amount in firms’ bank accounts abroad–as well as the fact that companies aren’t spending it. But the latter isn’t totally […]

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Why Buffett should vote ‘no’ on coke

By Rana Foroohar (originally published by Time Magazine) – The discussion over inequality is all the rage these days, and it’s been given a new wrinkle with the hoopla over Warren Buffett’s abstention from a vote over Coke’s new compensation plan, which would award billions of dollars to Coke managers in Coke stock if they […]

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