Blinded by the Light

How the “halo effect” distorts our view of company performance.

Star Search

Companies are increasingly looking in top MBA programs for finance talent.

Misgivings

Recent studies raise an uncharitable question: Is nonprofit accounting off track?

From Push to Pull: The Next Frontier of Innovation

In “push” systems the core assumptions are that companies and other institutions can anticipate demand and that mobilizing scarce resources in previously specified ways is the most efficient and reliable way to meet it. But the efficiency of push systems comes at a stiff price, for they require companies to specify, monitor, and enforce detailed activities and tasks. This rigidity necessarily restricts the number and … [ Read more ]

A Productive Debate

Is the link between pay and productivity broken?

Paul Volcker

When I look at stock options, I am more and more convinced that in a basic sense, the trouble is not whether you expense or not – stock options are just a bad instrument. They’re so subject to abuse, you want to get rid of them. There ought to be better ways of compensating people. There are better ways. Because the results are so capricious, … [ Read more ]

Pay Dirt

As the SEC shines a light on executive compensation, will companies clean up their acts or find new ways to hide excess?

Lowering the Bar

How market beta can make hurdle rates look artificially low.

(Don’t) Look Deep into My Lease

Terms can be mesmerizing, but companies get a rude awakening when leasing’s real cost is revealed.

Building the Healthy Corporation

The emphasis on quarterly earnings at the expense of longer-term corporate health sometimes reaches absurd extremes: in one survey, executives said they would scale back investments in R&D and marketing to meet their quarterly forecasts–even if these cuts would hurt the long-term prospects of their companies. Since the capital markets value both immediate and sustained performance, companies should embrace a portfolio of initiatives over three … [ Read more ]

Try Before You Buy

Companies are using alliances to take the risk out of acquisitions.

First, Forget What Works

The success of an innovative new business may depend on forgetting what makes the core business tick.

The Quest for an Environmental Metric

Gazing at weather systems, a ground-breaking scientist spawned an ecological accounting standard that Wall Street might one day embrace.

Editor’s Note: discusses emergy, a concept created by University of Florida professor Howard Odum, which is a blueprint for breaking down the world into basic, measurable energy components called solar emjoules. A joule is a unit of energy that is available now. An emjoule (“energy-embodied joule”) … [ Read more ]

Keeping In Touch

Corporate alumni networks are an increasingly valuable resource for employees and employers alike.