Giving non-executives ultimate authority . . . and then holding them accountable
In five years – maybe sooner — Boards of Directors in the US are going to govern their companies much more freely than they do now.
Today, more than half the companies in the S&P 500 combine the roles of Chairman and CEO.When those two positions are held by the same person, the CEO listens only to himself.He also basically gets to handpick all the other members of the board and senior management.
Deutsche Bank just took its most daring step yet to reprogram its workforce. It adopted a policy denying the bank’s top-performing traders plum promotions and fat bonuses if they’re deemed to be “disruptive” or non-team players.
Taking a high-potential start-up to the next level
Angels are investors who finance start-ups after the entrepreneurs have put up their own capital and raised additional funding from so-called friends & family. Angels only invest in new businesses which they believe can return big numbers.
Whose fault is it when your job is to make as much money as possible?
Back in 2008, it certainly looked as if rogue trader Jérôme Kerviel was acting alone.
He had built up derivative positions in the astronomic amount of €50 billion ($68.5 billion) – way beyond his trading limit – and had admittedly concealed them from his employer, Société Générale, by creating fake, offsetting trades in its computer systems.
It all depends on your investment time horizon . . .
Statistically, hedge fund activism was off the charts in 2013. It was the top-performing hedge fund strategy by far and its practitioners won more proxy contests, attracted more capital and targeted bigger fish than ever before.