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Governance/Compliance

CEOs Worry that the Government Shutdown Will Have Serious Impacts

CEOs at companies ranging from Honeywell to JetBlue Airways said that a prolonged shutdown of the U.S. government has the potential to jeopardize the economic rebound, according to a report from Bloomberg. In addition CNNMoney reports that more than a dozen Wall Street bank chiefs warned President Obama at the White House that the financial system would suffer if the shutdown and debt limit aren't resolved.

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Straight Talk About Minimum Wage Laws

California Governor Jerry Brown just signed a bill that will gradually raise the state’s minimum wage from $8/hour to $10/hour by 2016, saying it is a long overdue measure to raise the income of working families. Yet earlier in September Washington DC Mayor Vincent Gray, also a Democrat, vetoed a City Council bill that would require large retailers [read Wal-Mart] in the city to pay higher wages, a measure that had drawn national attention. Gray called the bill a "job-killer," saying it would result in the loss of thousands of jobs in Washington. So who’s right?

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Why 9 Years Is a Lucky Number for Board Director Tenure and Effectiveness

Grumbling about corporate boards -- about long-tenured directors too cozy with management, for example -- may be inevitable among investors, but new research by a young accounting scholar suggests surprisingly that at least one aspect of corporate organization suits Wall Street fine. Company performance actually rises with board tenure—but only up to a point--indicating there’s a tradeoff between knowledge and entrenchment.

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After Ballmer, What?

Since he announced his intention to step down as CEO of Microsoft Steve Ballmer has triggered a world wide betting game as to who will succeed him. Microsoft’s board has appointed a special committee to help decide if the next chief executive will be an insider like Julie Larson-Green, or the prodigal Stephen Elop of Nokia. (Ladbrokes, the London betting agents give Elop a 5 to 1 advantage.) But the central issue of concern is what the company needs to do to transform since it lost its dominate position in computing. Microsoft once ruled the tech world. Now it’s one player among many. Will the new CEO have his or her options foreclosed?

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