When Shareholder Groups Complain, Management Would Do Well to Listen

With the annual-meeting season getting underway, corporate executives can once again expect to be publicly targeted by shareholder groups unhappy over recent stock returns. Just how effective are shareholder activists and how constant is the pressure they exert on non-performing managers?

New Research Measures Positive Impact of ESOPs in Private Companies

Professors Joseph Blasi and Douglas Kruse of Rutgers University have recently completed a new study of the long-term performance of closely-held companies that implemented ESOPs. Key findings of the study show that ESOP companies had better long-term survival rates than comparable non-ESOP firms; had higher employment growth and higher growth in annual sales per employee; and that the introduction of the ESOP resulted in a … [ Read more ]

Surprise – your finances are now public!

Spring so far has been full of surprises, not the least of which is the SEC’s relief for private companies with at least 500 option holders that, under Section 12(g) of the Securities Exchange Act of 1934, might have had to fulfill public company disclosure requirements, such as 10-Qs and 10-Ks. It could be extremely harmful for a private company to have to expose its … [ Read more ]

Are Stock Option Rescissions an Unfair Benefit?

When the tech-stock bubble burst in 2000, a number of companies allowed key employees to cancel previous options-based stock purchases that had left them with deep losses. The implications of such favoritism are troubling enough that the SEC – not to mention shareholder activists – are taking a closer look.

Poison pills are no shareholder panacea

Article examines stockholder rights plans, also called poison pills.

The CEO Trap

Article examines the trend toward viewing the CEO as a superhero and putting him/her in a position to satisfy Wall Street or be fired.

A. Paladino

When we enter a board meeting, we only ask two questions. One, are we going to fire the CEO today? If not, then how can we help?

The Corporate Library

This excellent site is intended to serve as a central repository for research, study and critical thinking about the nature of the modern global corporation, with a special focus on corporate governance and the relationship between company management, their boards and their shareowners.

Repricing of Stock Options

As the stock markets have begun to pull back from their historically high levels, the boards of directors of corporations that have used stock options to attract and retain employees have found themselves under increasing pressure to modify or replace previously issued stock options that have gone “underwater.” (i.e. options whose exercise price is above the current market price of the corporation’s stock). To address … [ Read more ]

Unbuttoning the Board

In the New Economy, established companies are looking to the techno-literate to help them stay in the game.

How Family Firms Can Improve Their Long-run Survival

One of the potential advantages that successful privately-held companies have over their public competitors is their ability to make long-term strategic decisions based, in part, on what has been called “patient capital.” It means not having to answer to securities analysts and outside investors who tend to favor short-term results and short-sighted strategy. But firms can find this advantage only if they have a unified … [ Read more ]

Encyclopedia of Corporate Governance

Encyclopedia of Corporate Governance, or encycogov for short, is created and maintained by Henrik Mathiesen, a PhD candidate at the Department of International Economics and Management at the Copenhagen Business School. Content on the site is divided into two sections: Specific Topics and General Topics. Topics in both sections begin with a paragraph explaining the overarching definition of the principle, and link to a variety … [ Read more ]

Should senior executives hold shares, or be granted share options, in the companies they manage?

Few in the boardroom would answer this question other than with an unequivocal “Yes” – which is why recent comments by Wendelin Wiedeking of Porsche merit closer attention. His and some other Europeans’ attitudes offer a contrast to the very one-sided opinion run across in the U.S. press.

Ecomp Executive Compensation Database

The Ecomp Executive Compensation Database allows users to research the compensation and net-worth of executives. Users may search the database by company name or ticker symbol, as well as by state, sector, and industry pull-down menus. Search returns list compensation summaries for the top executives, including salary, bonus, and total compensation. Clicking on the executive’s name will give a more detailed summary, including restricted stock, … [ Read more ]

Executive PayWatch

This AFL-CIO site bills itself as a working families’ guide to monitoring and curtailing the excessive salaries, bonuses and perks in CEO compensation packages. Obviously this is a biased site, but still interesting – especially the CEO Pay Database – find out how much various CEOs are making.