RefBan

Referral Banners

Yashi

Thursday, April 17, 2014

Ditch These Wedding Traditions

There are some time-honored traditions that are probably best left in the past.

something old, something new

You might have missed...

From BuzzFeed Video...

This BuzzFeed email was sent to dwyld.kwu.yq4b5l8av2dw7@blogger.com | Unsubscribe

Did a friend forward you this email? Sign up to get BuzzFeed in your inbox

BuzzFeed, Inc. 200 Fifth Ave, 8th Floor, New York, NY 10010

ex-ecutive pay

View this email in your browser

In January, fifteen months after he joined Yahoo, chief operating officer Henrique de Castro was fired. SEC filings show that the company paid him $58 million to walk out the door, or around $130,000 per day of service, weekends included.

In a move unlikely to mollify critics, Yahoo's filing showed that had the company's stock not risen since de Castro joined the company, he would have exited with a mere $17 million. Bloomberg Businessweek's Joshua Brustein says that de Castro "got fired at the perfect time". The company's shares rose more than two and a half times while he was there. All of that rise is attributable to the rise in the value of Yahoo's stake in Alibaba.

Golden parachutes offend even Vladimir Putin's corporate governance sensibilities. The good news is that, despite de Castro's payout and former Time Warner Cable CEO Robert Marcus' $80 million parachute, severance packages are on the decline, at least by one measure. Fortune's Claire Zillman reports that a Thomson Reuters Journal of Compensation and Benefits study found that from 2007 to 2011, the number of randomly selected S&P 500 companies that paid three times salary in severance dropped from 58% to 38%. The number of companies paying two times salary as severance rose from 9% to 20% over the same time period.

The Washington Post's Jena McGregor reports that: "the professional services firm Alvarez & Marsal found that among the largest 200 US public companies, the value of golden parachute benefits have remained basically flat, going from $30.2 million in 2011 to $29.9 million in 2013."

Summarizing a study he co-authored, Harvard Law's Lucian Bebchuk writes that companies where executives had severance packages were more likely to receive acquisitions offers and be acquired. Matt Levine breaks out the data: golden parachutes "increase a company's 1-year chance of being acquired from ~4% to ~5.3%... increase shareholders' expected gains from being acquired... They do not, however, increase shareholders' expected wealth generally. Parachute-having stocks underperform non-parachute stocks by ~4.35% a year".

Looking at the same study, James Kwak thinks there's some adverse selection at work:

Companies are more likely to grant golden parachutes to their CEOs if they have: (a) CEOs who care more about maximizing their personal wealth than about their companies; (b) boards who are more concerned about doing favors for the CEO than about doing what's right for the company; or (c) both. Those are not the kinds of companies you want to be investing in.

– Ben Walsh

On to today's links:

Equals
"The evidence shows that prosperity and gender equality go together" - Chris Dillow

Alpha
Before he sends it to the government, Steve Cohen can not-insider-trade with his $1.2 billion settlement - DealBook

Charts
How Americans die - Matthew Klein
Goldman's shrinking FICC - Ben Walsh

Investigations
The re-segregation of American schools - Nikole Hannah-Jones

#Brands
Never interact with a brand on the internet - NYT

Oxpeckers
Empiricism is not politically neutral - Jonathan Chait

Crisis Retro
The government's P&L on the Fannie/Freddie bailout is somewhere between –$19 billion and +$181 billion - Wonkblog

Wonks
"VC for the people" is an argument for universal basic income - Steve Waldman

Remuneration
A $225,000 salary for Paul Krugman is more than fair - Reihan Salam

Niche Markets
The resurgent market for skywriting, thanks to Instagram - The Atlantic

Please Update Your Records
25- to 44-year-olds show remarkable judgement, don't want to live in the suburbs - NYT

Yup
The world's dumbest idea: Taxing solar energy - John Aziz

Click here to sign up for the email.

unsubscribe from this list    update subscription preferences 

 
Tweet
Share
Read Later

Business Today: For Goldman Sachs and Morgan Stanley, boring is beautiful

Click to View in Browser
04/17/2014
Reuters Election 2012 Daily round-up of the day's top news from the campaign trail, the White House and all the politics in between
For Goldman Sachs and Morgan Stanley, boring is beautiful
(Reuters) - Investment banks Morgan Stanley and Goldman Sachs Group Inc posted better-than-expected quarterly earnings on Thursday, helped by gains in merger advisory and stock underwriting.
S&P 500, Nasdaq rise after strong results
NEW YORK (Reuters) - The major U.S. stock indexes ended a holiday-shortened week with mostly gains on Thursday, giving the S&P 500 its biggest weekly advance since July as Morgan Stanley and General Electric rallied after strong results.
Jobless claims, factory data put some shine on economy
WASHINGTON (Reuters) - New claims for jobless benefits hovered near their pre-recession levels last week and manufacturing in the Mid-Atlantic region accelerated in April, suggesting an upswing in economic activity after a brutally cold winter.
U.S. judge declines to order 'park it now' notices for GM cars
(Reuters) - A federal judge on Thursday rejected a bid to compel General Motors Co to tell customers to stop driving millions of cars that have been recalled for defective ignition switches.
Ex-Goldman director Gupta to surrender June 17 in insider case
NEW YORK (Reuters) - Former Goldman Sachs Group Inc director Rajat Gupta is expected to begin his two-year prison term on June 17 for insider trading.
GE industrial profit boost underscores strategy, shares up
(Reuters) - General Electric Co posted a 12 percent rise in overall industrial profits on Thursday, as strength in its businesses selling gas turbines, jet engines and oil industry equipment offset weakness in healthcare and transportation.
Snack sales help PepsiCo beat profit estimates; soda steadies
(Reuters) - PepsiCo Inc beat profit expectations on Thursday as a booming snacks unit added pep to sales and its struggling North American soda business did better than expected, sending shares up more than 2 percent in premarket trading.
Ex-BP employee settles SEC insider-trading oil spill case
WASHINGTON (Reuters) - A former 20-year veteran of BP plc who oversaw the company's cleanup efforts from the Deepwater Horizon oil spill will pay more than $224,000 to settle civil charges alleging he used non-public information about the disaster to commit insider-trading, U.S. regulators said on Thursday.
BlackRock's quarterly profit climbs as investors pile into funds
NEW YORK (Reuters) - BlackRock Inc, the world's largest money manager, said on Thursday first-quarter profit rose 20 percent, boosted by strong performance fees and strength in its retail business as investors poured money into long-term funds.
DuPont expects farm business to pick up after severe winter
(Reuters) - Chemicals maker DuPont expects its agriculture business to grow this quarter as farmers buy seeds and insecticides after a delayed start to planting season in North America, which hurt the company's revenue in the first quarter.
Related Video
Business frustrates sanctions calls
Micro-organs to shape the future of personalised medicine
Economic News
Jobless claims, factory data put some shine on economy
U.S.-focused stock funds worldwide post $7.1 billion outflow: BofA
SUBSCRIBE TO OTHER REUTERS NEWSLETTERS
Counterparties
A daily digest of breaking business news, coverage of the US economy, major corporate news and the financial markets. Register Today  
 Money
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day. Register Today  
» MORE NEWSLETTERS
- 3 Times Square New York, NY 10036 USA © Copyright 2010 Thomson Reuters
Ensure delivery of Reuters Newsmails, add mail@nl.reuters.com to your address book. Details
Subscribe to other Reuters newsletters.
Unsubscribe from this newsletter.
Follow us on Twitter facebook Friend us on Facebook Forward this newsletter to a friend Forward to a friend

Yashi

Chitika