Presumably corporations would not want to overpay their CEOs, which is why they hire “compensation consultants.” The consultants study the publically available information on comparable CEO compensation so that they can benchmark their peers.
But it doesn't seem to work. Read More
An accident on the internet last month exposed a hidden form of political corruption known as “dark money.” It allows corporations to donate funds to “social welfare groups” set up specifically to support their political interests while circumventing legal limits.
What does it mean?
“Since the 1970s, economic orthodoxy has argued for low tariffs, free capital flows, elimination of industrial subsidies, deregulation of labor markets, balanced budgets and low inflation.” But does it work? Read More
The proliferation of celebrities in our culture is relatively recent. In the past, writers and actors sometimes became celebrated, well-known, even famous, but it was seldom something they aspired to. But now, what does this mean? Read More
Hedge funds have been cloaked in mystery from the start, starting with the name. “To hedge” means to protect or limit, but in fact the funds have been among the more risky and obscure investment vehicles Wall Street has to offer. Read More
Economists are beginning to question their jobs data. They had been focusing on the percentage of workers looking for work, and that news has gotten slightly better. But now they realize that the work force itself has been shrinking. That’s troubling and strange. It also changes their conclusions. Read More
We can usually handle two sets of opinions, without having to conclude that one is wrong. But what about two truths, two conflicting sets of facts? We have that with employment figures and corporate taxes. Read More
It’s a crude idea, an inelegant metaphor, but it makes a lot of sense. At a time when the financial industry appears to have a lock on mergers and acquisitions, the technology industry is taking another path. Larry Page calls in the "Toothbrush Test". Read More
In the aftermath of the violence in Ferguson, Missouri, we have the beginnings of a long-overdue national discussion about the militarization of local police forces. But what is the difference between the police and the military? Read More
Mergers are hot again: According to Thompson Reuters, “so far this year, $2.2 trillion in deals has been announced globally.” But nothing brings home the irrational frenzy of today’s Investor Capitalism so much as the impressive scale of some of the failures. Read More
The powerful don’t empathize with those less powerful, according to new research reported in "The New York Times." The reason offered is that, “when people experience power, their brains fundamentally change how sensitive they are to the actions of others.” Read More
It seems that the easiest people to scam are those who have been scammed. According to Doug Shadel an expert at AARP: “It’s pretty well known in the fraud world that the best list to get is the list of people who have already been taken.” Read More
What would you say to someone who tried to avoid taxes by registering as a resident in a state where he had, say, just a mailbox? Better yet, what would that state’s department of taxation say? Read More
A team of psychologists set out to study the resilience of high achieving disadvantaged youths, starting with the assumption that their “success stories also translated into physical health benefits.” Read More
The conventional argument against high speed trading is that it gives an advantage to those with faster technology, not better judgment. It’s unfair. It’s analogous to insider trading, using information not generally available – in this case, milliseconds before it is available to others. Read More
Social responsibility costs money, so how do corporate boards reconcile the demand to increase shareholder value with the price of protecting the environment and concern with the safety of workers. Most don’t try very hard, according to the Harvard Business Review. Read More
“The overall share of Americans who express consistently conservative or consistently liberal opinions has doubled over the past two decades from 10 percent to 21 percent. And ideological thinking is now much more closely aligned with partisanship than in the past.” Pew Research describes this as politics, but it's also psychopathology. Read More
It certainly goes against conventional wisdom, but according to a new study, reported in The Wall Street Journal, we experience more stress at home than we do at work, measured by cortisol levels in the blood. Read More
A French economist “has put creditable numbers on tax evasion, showing that it’s rampant–and a major driver of wealth inequality,” according to a story in The New York Times. What some have long suspected has proved to be true. Read More
A professor of management practice at Harvard Business School recently asked a provocative question about the drug industry: “Is the role of leading large pharmaceutical companies to discover lifesaving drugs or to make money for shareholders through financial engineering?” Read More