The Conglomerates sector appears to be a major decliner. Let's have a sneak peek at three major Conglomerates scheduled to report second-quarter 2017 earnings tomorrow to see how things are shaping up for the upcoming results.
Dave Wheeler for HBR The idea of incentivizing CEOs and senior executives seems reasonable to most people. Yet the large executive bonus is a relatively recent phenomenon. Executive pay grew more slowly than the average worker’s income during the 50s, 60s and part of the 70s. It was in the 1980s that the ratio of CEO to average-worker pay grew dramatically. It “exploded” in the 1990s. The astronomical rates of CEO fixed pay and bonuses that we are so familiar with today are only about 20 years old. Some researchers have argued that they’re a failed experiment. At the organizational level, they can decrease morale and fuel cynicism, especially if CEO pay climbs while average wages stall or grow more slowly, as they have in countries like the U.S., UK, and Australia. Growing inequality has contributed to the decline in several social phenomena, including mental health, and has been cited as a threat to democracy itself. Is it now time to redesign the experiment? If so, how? One approach can be seen playing out in Australia. On July 1, 2011, the Australian Government amended the Corporations Act introducing the “two-strikes” rule. It works like this: If 25% or more of shareholders vote “no” in approving a company’s remuneration report at two consecutive annual general meetings, then the second meeting will determine if all directors need to stand for re-election. If this occurs then all directors (except the managing director) must stand for re-election within 90 days. This has given shareholders muscle and has changed the corporate environment around CEO bonuses. Further, it has provided boards with a rationale to act and the courage to do so. And is it working? Yes, so far. The country has witnessed numerous first strikes with boards quickly backtracking to save their skin. Among the crowd are some of the nation’s largest companies – CSL, Woodside Petroleum, AGL Energy, Boral, and Goodman Group. The mere threat of a first strike has had boards treading carefully. It’s clear that boards are starting to get the message from the national government, shareholders, the public, and the media that excessive executive packages are unacceptable. More than that, smart businesses are stepping forward to proactively embrace the changing culture. One business which typifies the change is Wesfarmers. The company is Australia’s eighth largest by market capitalization and an opinion leader in business circles. Highly diversified across food retailing, hardware, office supplies, department stores and industrial products, its current CEO, Richard Goyder, is stepping down to be replaced by an internal appointee, Rob Scott. Scott will earn up to $4 million less than his predecessor agreeing to a $1 million cut to fixed pay and a $3 million cut to bonuses. This shift is clearly coming from societal pressure. As Wesfarmers chairman, Michael Chaney, told the Australian Financial Review (AFR) “We recognize changes in the market that have seen downward pressure on fixed pay levels for CEOs and reductions in overall reward opportunities…[We] believe that this package and those of other senior executives in the Group are appropriate and in line with contemporary market practice of peers.” And the pressure continues. The current Australian Government, importantly from a different party to that which introduced the “two strikes” legislation, has gone in hard on Australia’s “big four” banks. In its May 2017 Budget, the government proposed a bank tax, like that in the U.K., and has clamped down on CEO pay. The banks, which enjoy a government-guaranteed status and owe much to the government for their security and profitability, have come up short in responding to a variety of customer issues. With the full backing of the public, the government announced a clampdown on how bonuses are paid and greater scrutiny of bank executives. Even the Prime Minister, Malcolm Turnbull, has waded into the issue. He was quoted in the AFR calling it “almost a cult of excessive executive CEO remuneration.” It’s also important to note that the mood in Australia is not exactly “anti-wealth.” No one is arguing that CEOs and entrepreneurs don’t deserve to be highly paid – provided they pay their fair share of taxes. These individuals have often taken huge risks, and very few succeed. Moreover, their wealth is often derived from the ownership of shares in the enterprise they founded. If someone wants to literally bet their house on the success of their business and ends up a billionaire, then most Australians would say good luck to them. The public’s concern is with professional managers who have risked little, but who think they have a right to earn Bill Gates money. That sentiment seems to be rising in other countries, too. Regulators and policy-makers in those countries can look to the Australian model for one example of how CEO pay might be reined in without heavy-handed regulation, and smart boards can get out ahead of the curve to satisfy shareholders, improve internal morale, and win the trust of the public.
Per Reuters, Apple Inc. (AAPL) is seeking collaboration with local internet services companies to establish its first data center in China, to ensure compliance with the country's newly implemented cyber-security regulations.
Is Carlisle Companies a great pick from the value investor's perspective right now? Read on to know more.
Centrica Plc во вторник объявила о планах прекратить хранение газа в единственном долгосрочном газохранилище Великобритании Rough.
Momenta Pharmaceuticals (MNTA) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
China’s much-anticipated Cyber Security Law (CSL) will come into effect on 1 June 2017. Deciphering exactly who is captured and what is covered is leaving companies unsure as to how they will comply with this vague and potentially onerous law.
Если вы читатель TomDispatch, то знаете кое-что о настоящей значимости этой страны, чего большинство американцев не знает. Никогда не существовало столь имперской державы, как США, если говорить о размещении войск по всей планете. Если сравнить, то римляне и имперские китайцы были просто трусами, Советский Союз в самый расцвет был самым жалким из занимавших второе место, даже британцы в то время, когда теоретически солнце никогда не заходило над их империей не идут ни в какое сравнение. У США — сотни военных баз размером от небольших американских городков до крошечных аванпостов по всей планете, и при этом вы можете потратить недели, месяцы, годы, внимательно следя за СМИ тут и там, и всё же понятия не будете иметь, что это именно так.
For all the nationalism and political will, China is ploughing millions into youth development and the intention is to win the World Cup within the next 30 yearsThis week I watched the Chinese Super League so you don’t have to, taking in the full, slightly wild 90 minutes of the champions Guangzhou Evergrande versus last year’s runners-up Jiangsu Suning, the most recent of the CSL fixtures being shown in dribs and drabs by Sky Sports.There was a vague point to all this beyond simple recreation. The lure of the Chinese Super League seems to lurk behind every story, every noise off, presented as a kind of gilded career-dustbin for every ageing star with a hungry agent to feed. Diego Costa and Radamel Falcao have been linked with moves this summer. Only this week Wayne Rooney has been implored not to go, reminded that he “still has so much to give”, like a man being talked down from the 27th-floor windowledge of a seven-star tower hotel. Continue reading...
Momenta Pharmaceuticals Inc. (MNTA) reported loss of 46 cents per share in the first quarter of 2017,which was narrower than the Zacks Consensus Estimate loss of $1.09. In fact, the company posted a loss of 35 cents in the year-ago quarter as well.
Leucadia National Corporation (LUK) reported solid first-quarter 2017 results with net income of $281.4 million or 75 cents per share
Despite a challenging macroeconomic environment, 3M Company (MMM) started 2017 on a positive note with strong first-quarter results.
Crane Co's (CR) first-quarter 2017 earnings of $1.05 per share surpassed the Zacks Consensus Estimate of $1.00, while net sales of $673.4 million came in above the Zacks Consensus Estimate of $652.5 million.
Honeywell International Inc.'s (HON) first-quarter 2017 adjusted earnings as well as revenues surpassed the Zacks Consensus Estimates by 2.5% and 1.7%, respectively.
Despite a challenging macroeconomic environment, sustained restructuring initiatives for a leaner firm with a re-focus on core operations enabled General Electric Company (GE) to report relatively strong first-quarter 2017 results.
С февраля 2010 года в России существует Доктрина продовольственной безопасности. Однако там нет задач селекции растений, а ВИР может решать только задачи селекции. Кроме того, Доктрина — это не закон! Четкое управление сельским хозяйством возможно только на основе специального закона и соответствующих подзаконных актов.