Despite recent stock market jitters related to the coronavirus, the U.S. economy is doing well. Wages are growing, especially for lower-income workers, and unemployment is low. Yet calls are intensifying for the federal government to implement paid leave, which may unwittingly hurt those whom the program claims to help. Supporters often resort to the same misleading notions to make their case -- misperceptions that must be continuously debunked, lest they lead to unnecessary harm to working families. READ MORE
A New Framework for Executive Compensation
The nature of change in business today differs from the past in both magnitude and pace: Technology is disrupting fundamental business models, forcing transformation across whole industries. According to a 2019 Accenture study, 71 percent of 10,000 companies in 18 industry sectors are “either in the throes of or on the brink of significant disruption.” Similarly, McKinsey concluded a major study of automotive, electronics, aerospace, and defense industries, saying, “The industrial sectors will see more disruption within the next five years than in the past 20 years combined.” READ MORE
More CEOs are under pressure to do better by the world. But it's complicated.
That means doing all of the following and more: Go green. Do business more ethically, humanely and sustainably. Treat employees well and pay them fairly. READ MORE
Why the average male can no longer cover basic expenses for his family
CBO: Raising the federal minimum wage would lift millions out of poverty — but there's a downside
Amid all of the changes in the U.S. over the last decade, one thing has remained steady: the federal minimum wage, which has sat at $7.25 since July 2009. READ MORE
2019 Wage & Hour Developments
A Year in Review - State Updates READ MORE
When it comes to raising the minimum wage, most of the action is in cities and states, not Congress
The federal minimum wage has stood at $7.25 an hour since July 2009. Given the partisan split between the House and Senate, it seems destined to remain there for the foreseeable future, despite broad public support for raising it. But in some ways, Congress’ deadlock is almost a side issue to the main debate: For the past decade or so, most of the action on minimum wages has been in states, counties and cities. In Virginia, for instance, lawmakers recently approved legislation to raise the commonwealth’s minimum wage, though the Senate and House of Delegates need to reconcile their differing versions. READ MORE
More pension funds, managers targeting excessive CEO compensation
More pension fund officials and asset managers are holding companies accountable for excessive compensation but could be doing more, according to "The 100 Most Overpaid CEOs" report issued Tuesday by advocacy group As You Sow. READ MORE
The facade of a minimum wage increase
The current Democratic front-runners in the 2020 presidential race, Amy Klobuchar, Elizabeth Warren, Bernie Sanders, Joe Biden, and Pete Buttigieg, each hold common ground on one particular policy: Raising the minimum wage to $15 an hour. READ MORE
If Bloomberg is so rich, why does he steal workers’ wages?
Michael Bloomberg has been pummeled over the treatment of women at his media and data company. Yet that is not the only blemish on the employment record of Bloomberg L.P. The company also has a serious problem with wage theft. READ MORE
Nonprofit Staff Are Getting Performance Incentives
Nonprofit executives might have been a bit tentative about leaving their jobs or retiring in the wake of the Great Recession a decade ago. Their retirement plans and stock portfolios were decimated. They were probably faced with difficult organizational decisions about staffing and cutting expenses. READ MORE
Warren Buffett and the Problem of Executive Compensation, Pt. 1
Regular GuruFocus readers will no doubt be aware that Warren Buffett (Trades, Portfolio) published his latest annual letter to shareholders of Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) over the weekend. It contained the usual - highly illuminating - insights regarding his investment philosophy, the importance of insurance float to Berkshire’s continued success and a rundown of the performance of its subsidiaries for the past year. READ MORE
Warren Buffett and the Problem of Executive Compensation, Pt. 2
In my previous article, I used Warren Buffett (Trades, Portfolio)'s latest Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) shareholder letter as a starting point to talk about some of my reservations regarding the explosion in executive compensation that has taken place over the past several decades. I now want to look at some comments that Buffett himself made about this issue, and at some possible solutions to what he sees as a problem for corporate America. READ MORE
Top U.S. index fund firms backed 'overpaid' CEOs
Large U.S. companies accused of overpaying their chief executives faced few critical proxy votes from top index fund firms last year, a new report found on Tuesday, even as other asset managers got tougher with their ballots. READ MORE
Here were last year’s most overpaid CEOs
Warren Buffett explains why CEOs prefer ‘cocker spaniels’ over ‘pit bulls’
A company’s board of directors is supposed to look out for the interests of shareholders. Or something close to that. READ MORE
A Modest CEO Pay Proposal
In no way am I in favor of the government creating limits to C-suite pay, access to the amount of stock they get or other forms of executive benefits and compensation. Owners, CEOs and other high-level executives should drive to make as much money as they want. However, it's high time for the very highest-paid executives to voluntarily take notice, give back and get a perspective on the disparity in compensation between themselves and the workers at their companies. READ MORE
Wells Fargo Reaches Settlements to Resolve DOJ, SEC Investigations
Wells Fargo & Company announced it has entered into agreements with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) to resolve these agencies’ investigations into the company’s historical Community Bank sales practices and related disclosures. As part of this resolution, Wells Fargo has agreed to make payments totaling $3 billion. READ MORE
Long-Smoldering Nonprofit CEO Compensation Issue Catches Fire
As bizarre as it may be, Florida lawmakers have finally allowed themselves to acknowledge (and express belated outrage over) the exorbitant executive pay at the state-funded Florida Coalition Against Domestic Violence (FCADV). This issue was surfaced in 2012, but just because they have been sitting on their hands for eight years even as the information has been publicized and millions in excessive compensation has walked out the door doesn’t mean they can’t act like they mean real business now. READ MORE