Showing posts with label management. Show all posts
Showing posts with label management. Show all posts

Wednesday, December 07, 2016

Subscribe to blog posts by John Hunter

I have added an RSS feed to the blog posts I add to JohnHunter.com. I add items there for some, but not all of my posts, from my various blogs.

There is a list of blogs I author on my Curious Cat blog site. I write on several topics including

  • Management and Leadership
  • Money, Investing, Lifestyle and Personal Finance
  • Travel
  • Technology, Computer Programming, Engineering and Science
  • Society

I am currently in the process of adding items for the past few years (as I stopped updating this part of the JohnHunter.com website for awhile).

I believe RSS feed readers are one of the most valuable tools for those learning online. I wrote about what RSS feed readers are and how to use them previously.

Tuesday, October 06, 2015

Utopia (Dreamland in the USA) is an Amazing TV Program

Dreamland (USA name) is an Australian TV show (called Utopia in Australia) that is available on Netflix. It is completely awesome. It is an amazing, biting, satirical look at modern office life at the Nation Building Authority of Australia.



Even after a second tweet to my followers emphasizing how awesome this show is they failed to appreciate the importance of going to watch this show immediately. I am very disappointed in them.

Go watch this show. It is on the level of the British version of the Office (and Dilbert - the comic strip not the TV show) for sheer greatness. And while I enjoyed that a great deal I think Utopia is a significantly superior experience. As far as a TV comedy goes the only thing I can think of in this class is Seinfeld and the level the Simpson's has reached at times. But Utopia has been universally awesome from what I have seen so far, without lots of the less compelling Simpson's shows.

Better off Ted, also available on Netflix, is also quite excellent and somewhat similar Utopia.



Utopia is something no one who works in an office should miss.

The embedded videos unfortunately barely give any indication of how special this show is.

Once you watch this, if you haven't seen Better off Ted go watch that.

Related: Curious Cat Management blog - Create a System That Lets People Take Pride in Their Work

Tuesday, April 15, 2014

HP Leaders Once Again Caught in Corruption Scandal

Hewlett-Packard seems destine to continue to have extremely bad behavior by those chosen to lead the company. At some point they need to appoint a board with the ethics and moral compass to take the proper actions and the competence to take effective action.

Hewlett-Packard Admits to International Bribery and Money Laundering Schemes
Hewlett-Packard has admitted to creating and using slush funds for bribes, money laundering, and clandestine “bag of cash” handoffs in order to profiteer off of lucrative government contracts in Russia, Poland, and Mexico, according to court documents.

HP’s guilty plea carries with it a $108 million penalty — a combination of SEC penalties, as well as criminal fines and forfeitures paid out to the Department of Justice. Thus far no criminal charges have been brought against American HP executives. The multi-agency investigation, which was conducted by multi-national law enforcement partners, the FBI, IRS, and SEC, has revealed kleptocracies in the three foreign governments and corruption and dishonesty among HP corporate fat cats.
I have written before about the corruption on the HP board and other bad behavior. Such a shame for a company that once was ethical and produced value for society.

Related: Geo-obsolense from anti-global HP (in addition to planned [coded-in] obsolescence HP breaks customers products based on geography - HP Poor Service – Industry Standard? (2006) - $8,000 Per Gallon Ink from HP (2007) - Another Year of CEO’s Taking Hugely Excessive Pay (in 2008 HP CEO took 7.4% of corporate profits personally before being tossed due to ethical failings). - Bad Behavior at HP (2006)

Wednesday, March 05, 2014

Banks Failed Management Practices Never Seem to Stop

I can't believe how constantly there are news stories about corruption and bad practices so deep that banks have to hand over hundreds of millions of dollars. To say nothing of crashing the world economies and requiring bailouts from taxpayers across the globe not just to stay in business but to limit the damage their immoral and unethical consequences of their practices. All the while the executives continue to act just as kleptocrates surrounding tinpot dictators - as everyone else is horrified by both groups behavior each dips into the treasury they have access to and takes all they can. And consumers suffer due to the failure to adopt sensible security practices in the USA for credit cards that the rest of the world has adopted.

What is the disclosure today of pointy haired boss banking behavior? 95% of ATMs rely on Windows 95 which is a poor security risk to begin with and Microsoft ends support for it on April 8th, 2014. How do we even allow these executives to remain in positions of authority (in businesses where security is so important)? And we go beyond that and allow these people to lavish cash upon themselves out of the funds held by the bank?
security experts have chastised the financial industry for putting ATMs on a PC operating system in the first place. They argue ATMs should be using software that is scaled down and less buggy, such as Linux.
No kidding, plus Linux versions are much more secure from the ground up.
Ironically, bank customers have less to worry about from those nondescript ATMs found in malls, bars and tiny convenience stores. Those 208,000 independently-run kiosks, built by Triton, Genmega and Nautilus Hyosung, make up the other half of the nation's ATMs. And nearly all of them run on an even older, simpler operating system called Windows CE -- which Microsoft still supports.
Jeez I don't know what to say about this. It is better I guess, but hardly any good, but maybe it is less horrible (I am not really sure).

Dealing with criminals attacking credit cards, ATMs, banking web sites and banking apps is a challenging business. The governments are not doing consumers any favors by lavishing funds on spying when those funds would be much better directed to stopping financial crimes (of this sort - and also the sort engaged in by banking executives - from which those continuing avalanche of fines for hundreds of millions of dollars stem). But since governments are choosing to spy while neglecting crime prevention it is even more important for banks to make credit card, ATM and online security a priority. Instead they are making a priority buying special favors from governments of straight welfare and subsidizing/allowing risk taking (and subsidizing any failed risk taking with taxpayer funds) to give lavish gifts to executives so they can build castles and the like. It is quite a sad system.

Related: CEOs Plundering Corporate Coffers for Personal Gain - Losses Covered Up to Protect Bonuses - Obscene CEO Pay - The Best Way to Rob a Bank is as An Executive at One

Friday, July 13, 2012

If You Create a System That Includes The Perfect Conditions for Scandals, Expect Scandals to Happen

Massively overpay people for taking huge gambles with other people's money and they will do so (ethical people won't, but you only need a few unethical people and their is an oversupply - county on running out of unethical people is an extremely foolish "strategy").   Make it even worse by creating a culture where everyone sees lots of people getting massively overpaid for the times when the roulette wheel lands in the right spot and you create a culture ripe for claiming good results (no matter what the truth is).  Add in a very smart strategy (for those seeking to siphon off billions from the productive economy) of creating massively complicated schemes that allow for all sorts of false claims and you have what the leaders of our country (and a few other countries leaders) have created.

Other leaders abolished child labor, created universal education, sent us to the moon.  Ours are busy justifying massively unjust payments to a few at the cost of the well being of the country and the citizens of the world.

The too big to fail welfare banks have been practicing this behavior for a couple of decades.  And, like clockwork, huge scandals occur.  It seems like we have a huge spike in scandals in the last couple of years.  The scandals are entirely predictable given the systems created to try and justify paying unjustifiable payments to executives and gamblers.

The reason for the spike in scandals being discovered now is probably 2 fold.  First the unjustified pay has increased massively and thus increased the irresponsible behavior and rewards for being irresponsible.  Also, fraud often remains hidden in boom times and becomes uncovered when the ability to hide that the roulette wheel hasn't actually been providing the returns used to claim the unjustifiable payments taken by the executives and gamblers.

The quote of the latest massively overpaid CEO overseeing yet another scandal is just the same as all the other mindless "explanations": 

'But he stressed that it was an “isolated” incident and that JPMorgan had already cleaned house'

They then pay those we elect enough to have those we elect continue to grant them massive favors and continue to allow the undermining of our economy by the continued scandalous practices.  The process will continue, as it has for decades, until we refuse to elect those that sell out the country to pay back those giving the politicians lots of cash (or for the politicians that can't understand what is happening).

Eventually the delaying game of those operating these phony systems to extract big payoffs for themselves will no longer be tolerated.  But so far we seem happy to continue to support leaders doing all they can to support this system.

It doesn't appear, even now, we are going to demand change.  And it is completely obvious the too big to fail welfare banks are just increasing the scandalous behavior and the politicians are just increasing their support for these institutions.  Oh the politicians will say silly things to claim they don't like the bad things being done to the country and then run right back and do the bidding of those at the too big to fail welfare banks that give them cash.  Those giving cash know it doesn't matter what politicians say only what they do.  And the too big too fail banks couldn't ask for any better lackeys.

It will change when we throw out the politicians that are (and have been for decades) making this possible.  Until we do it won't change.  The executives and politicians have shown no amount of suffering is enough for them to behaving honorably.  As long as they get their cash they don't care what it does to the country or the economy of the world.

Sunday, March 18, 2012

Employee Benefits: Concierge Services

I would have to say actually good concierge services would rank very high up on my list of benefits I would actually care about a company providing.  If the services are lame then it is probably more trouble than it is worth.  But good concierge services would be a great benefit.

Some services help you fight the HMO nightmare.  That would be another useful service (though one I guess companies would be less willing to provide.  A great basketball gym would be high on my list also.  As would flexible work schedules and telecommuting.


My Personal To-Do List? The Concierge Has It

When Jonathan Swanson, a warehouse associate at Mercedes-Benz USA, was planning his honeymoon, he didn’t log on to a travel Web site or start a Google search. Instead, he picked up the phone and called Circles, a 24-hour personal concierge service that is a free benefit available to Mercedes-Benz USA employees.

The biggest thing I want now it to pay someone to do the stuff that is a bother for me.  My attempts (to get this myself) so far show it isn't as easy as it sounds.  Getting service that is actually good enough is tricky (often you waste so much time trying to explain what is needed you save none).  Also I can't fit a huge cost in my budget so the services have to be fairly cheap (the larger companies tend to be hugely expensive).

Tuesday, November 01, 2011

Netflix is Well Managed - People are Overreacting to Short Term Issues

Netflix and the Data that Lied

This past summer, high-riding Netflix announced an increase of 60 percent in the price of a combination of data streams and DVDs. Netflix subscribers were upset. Then, the company trumped that by announcing that, henceforth, DVDs and streaming would be handled by two different companies, requiring subscribers to use two different web sites.
The result was a net loss of 800,000 subscribers in the third quarter. Netflix stock was trading at close to $300 in mid-July. Today it's trading around $80.


I didn't get the idea of splitting up the company. And that logic seems even more questionable now that they reversed it.  But I still think Netflix is very well run.  I tend to believe we make a mistake when jump all over short term issues for companies that have long term positive track records.

Now I don't have a huge number of companies that I think have long term positive management track records.  But I think Netflix is one of them.  And just like all those jumping on Toyota a few years ago were mistaken (as I said at the time and still believe) I believe those thinking Netflix made huge errors are wrong.  Toyota made some mistakes.  They still were and are better managed than 98% (or more) of companies.

Netflix has made some mistakes.  My belief is the underlying business realities forced difficult choices.  Just sitting around doing nothing (and not "angering customers" was not an option.  They could have handled it better.  But once again I think they are better managed than most all companies - I don't trust them as much as Toyota.

Their stock price (given the business) seemed insane to me.  I liked the management wanted to invest with them.  Couldn't see doing it based on the stock price.  I will be looking at them again.

Today Amazon falls into that camp for me.  I love the management and business for Amazon.  The stock price just seems way to high given the risks (and limited profits so far).  I sold my shares in the last year (below where it is at now).  I hope I can buy again, but at these prices I just can't see it.  If the business improves a lot and the stock price even increases I could buy (it isn't the absolute price it is the price given everything I know and believe now).

The businesses Amazon and Netflix are in are challenging and full of risk.

Netflix stock price Nov 1, 2011 (when this was posted): $80.09.
Updates: Jan 19, 2012 stock price: $103.46.
March 10, 2004: $440

Related: Amazon Keeps Spending, Sales Growing But Not Income - Reacting to Product Problems

Saturday, August 06, 2011

Society is being shaped for us while we are busy making other plans

I am disheartened by how our society is being shaped in ways that I don't think most people agree with. The problem is the system that shapes society is not some wonderful system that collects and synthesizes the wants, desires, hope, dreams and hard work of individuals to create an ideal system for peace and prosperity of all mankind. Too bad. But that has never been the case. However, the level to which society is being malformed today by special interests manipulating things for their favor at the expense of society is disheartening.

One of those areas is the legal system that inhibits many positive things for society and encourages many negative things. It is within our power to shape society. But it is not within our desire.

Society is being shaped for us while we are not paying attention.

Here is one small example, of how we have somehow reached a place where honestly providing your opinion of an employee is dangerous to you (this harms: employees [not being able to get references that will speak], companies [not being able to get references on potential hires], society [the inefficiency added to the market is a negative cost with no benefit - just a reduction in everyone's standard of living] and the person not allowed to give an honest reference [not being able to be honest, help those that helped them...]):

What Employers Can Say About You When Giving References

This is why many employers have neutral reference policies, where they only give out dates of employment and job title. This is obviously safe information to give. I would caution employers who have neutral reference policies to apply them evenly. If you give positive or negative references to some employees, you could get socked with a discrimination claim.


Don't you think the huge negative externalities of limiting honest discussion of people's strengths and weaknesses is a sign of the sickness of the legal system? The reason we have a legal system to to help society function. Unfortunately it often does the opposite and makes society avoid activity that is good for society. There are good reasons for things like defamation suits when someone is behaving egregiously. When we force people to self sensor in order to avoid the hugely overreaching legal system that does great damage to our society.

People seem to think bad societal repercussions are inevitable. They are not. If we didn't roll over for run away legal activism we wouldn't have to put up with it. Not being able to be honest is not a good outcome for society. And, in fact, is against the moral code most people would subscribe too. Unfortunately we more an more are concerned not with what is moral, right or good but what is a bother and what pain the legal system will inflict on us for being honest.

Society is being shaped for us while we are busy making other plans.

We need the rule of law. The problem I see is that today the way that is being done (and not done) is harmful to our society. It is not that we need to eliminate the legal system. We need to fix it so it works to make society better and not so often to do damage to society instead.

Life is what happens to you while you're busy making other plans. - Beautiful Boy, John Lennon, 1980
Life is what happens to us while we are making other plans." to Allen Saunders, 1957

Related: Bikinis For Liberty - Librarians Standing Up to the Madness - Copywrong - Freedom Increasingly at Risk - Bad Behavior - CEOs Plundering Corporate Coffers

Wednesday, June 15, 2011

Agile Software Development and Customer Delight

Agile is about customer delight

If @jeffpatton's point is to emphasize the need to consider the customer more fully in Agile projects, then I am in total agreement. But one thing is for sure, Agile methods are much more directed at Customer Delight than many of the other methods available today


Jeff Patton might be right. I would say though, my belief is it makes customer delight more likely. Having a system of development that is more responsive is more likely to do so. In the agile context it would have a lot to do with the product manager - but I think the agile mindset would make it more likely the product manager could prioritize tasks to delight the customer (for various reasons - such as not having to spend so much time fighting over specs decided 9 months ago, having a mindset focused on what is most important now [rather than following what we promised somebody 6 months ago])... Agile might not directly lead to delight, but it sets a stage where that is much more likely - not only because of system improvements but changes in what people spend focus on.

Related: Curious Cat Management blog posts on customer focus - Involve IT Staff in Business Process Improvement

Sunday, November 28, 2010

The TSA doesn’t give a hoot about security

Jobs I am Glad I Don't Have

So, it appears that the TSA has a choice. Be vigorous in its inspection and be blasted for invasion of privacy, or use less rigorous methods, and face the consequences of missing dangerous materials.


I think you raise the wrong question. I think your question is similar to a CEO saying to Taiichi Ohno:

I care most about quality - providing excellent products to the customer. Either add more inspectors or tell me we have enough inspectors and tell me who we need to replace. The answer Taiichi Ohno would give is to change the way we work to be better, not just add more resources to try and cope with a bad system. More of my thoughts on the topic the TSA doesn't give a hoot about security.

There is another choice - find effective methods to improve quality (better security), reduce waste ($ spent by TSA, people wasting time in line...), respect people. There are many bad things about the current situation at airports they include:


  • poor security measures (not well designed to reduce risks), and

  • far too intrusive



Both should be fixed. As well as reducing waste. And the way to do so is to change the system - not either add to or take away from what is done now.

The front line TSA people are in a horrible situation. This is the classic situation where Dr. Deming would empathize with the employees and blast the senior leadership who have failed their customers and their employees.

Related: Bikinis For Liberty - Freedom Increasingly at Risk - Exposing Bad Behavior

Saturday, August 07, 2010

Suicides: Foxconn, Cornell and the Golden Gate Bridge

Wrong on So Many Levels

Foxconn Installs Antijumping Nets at Hebei Plants. Anti-jumping nets?

Having built safety nets along its employee dormitories after a series of jumping suicides at its Shenzhen production plant, Taiwanese electronics manufacturing giant Hon Hai Precision Industry Co., which uses the trade name Foxconn, is now installing the same sort of nets at some of its inland factories

...
If things are so bad that people would rather hurl themselves off of tall buildings than work in a Foxconn factory (or even just go find a factory job down the street) it seems like Foxconn should put the nets on the doors of their factories to catch people from going in.
...
The 42,000 employees in the Shenzhen plant assemble nearly 70% of the iPhones and iPads for Apple. There have been 10 factory workers who jumped to their deaths in the first 5 months of 2010 at the Shenzhen plant



It is wrong on many levels. I do think Apple has some responsibility. I do think human psychology around suicide is complex and confusing and cause and affect can be confused by correlation not cause.

Putting the nets there sure looks lame, and like non-root cause problems solving. But if they actually save lives then what? There are nets below the Golden Gate bridge (also to reduce suicide deaths) after quite a bit of debate. It sure takes a long time for them to act. 2 years later and still barely moving forward.

Cornell University has a long term problem with suicide jumpers, 6 this year - and they have installed suicide prevention fences:

Several suicides clustered in a close proximity of time and location, such as what Cornell experienced in late winter, are known to cause an "imitation" effect on vulnerable members of the community, elevating their risk of suicide. No one knows for sure how long the elevated risk can last, but the mental health professionals Cornell consulted said that it is very likely to continue for the foreseeable future and strongly recommended that temporary barriers remain in place while permanent means restriction measures are explored and designed.


I am not at all sure the suicide prevention nets at Foxconn are a bad idea. They certainly "look" (visually, and the image they convey is not being very root cause problem solving like) bad.

If we examine Cornell and Foxconn together what answers might we find? I think there are things to fix at Foxconn, but it is very easy for those of us the USA to just paint management as villainous. I don't think we will paint Cornell professors as villainous. Foxconn absolutely needs to do much more than put up nets. But whether putting up nets is good short term fix (like Cornell's) I think is at least debatable.

Problem solving can be quite complex. Especially with something like suicide where the causes are very likely to be varied and systemic. I doubt you will find one root cause. You may find at Foxcon: low wages (and the pressures that brings on as one factor - Foxconn doubled wages recently), lack of joy in work (to an extreme level - truly feeling like a cog in a machine with no hope), "imitation effect", homesickness (moving to the factor hundreds or miles from home and living in a dorm), youngness (hormones, lack of life experience, exaggerated importance... - similar at Cornell and Foxconn), perhaps abusive practices in the factory, perhaps other psychology in the factory (low light, long hours, painful work...), perhaps bullying of peers...

I think a good systemic solution will look at what I think all management should look at: practicing respect for people and creating joy in work. But that isn't an overnight solution, even if they wanted to pursue that strategy (which I don't see any evidence that they do). It will take time to change the system. It is something that I think can address the systemic root causes.

Related: Auto Manufacturing in 2009: USA 5.7 million, Japan 7.9 million, China 13.8 million - Motivate or Eliminate De-Motivation - USA, China and Japan Lead Manufacturing Output in 2008 - China’s Manufacturing Economy

Saturday, December 05, 2009

Interactions and Data Analysis

Re: Context Matters

Multivariate testing is great. And it a great way to determine interactive factors - which are essentially not possible to determine with one variable at a time testing (though a smart person can see indications within this type to view them).

Your example though seems to largely be about properly stratifying the data for optimization. While it is always difficult to tell with short examples it seems like it may well be that you have 2 different audiences and a solution that, for example, intercepts the search engine traffic and gives them some context might help a lot (you see this on many blogs where they say - "I see you find us search on X - you may also be interested in Y...

But the biggest point I think your story illustrates is the importance of the experimenter. They need to think. Their role is not just to calculate some numbers and whatever number is higher wins. George Box: "it’s not about proving a theorem, it's about being curious about things. There aren't enough people who will apply [DOE] as a way of finding things out."

Related: YouTube Uses Multivariate Experiment To Improve Sign-ups 15% - Using Design of Experiments - Statistics for Experimenters

Saturday, August 23, 2008

Media Company Fails at Web Again

Video has been supported on the web for years. Simple, know solutions exist. What does NBC do for the Olympics? Setup some complex solution that fails :(

Video is currently supported on the following browsers:

* Internet Explorer 6, 7 for Windows
(Vista, XP SP2 or greater and 2003)
* Firefox 1.5, 2, 3 for Windows
(Vista, XP SP2 or greater and 2003)
* Firefox 1.5, 2, 3 for Mac
(OS 10.4.8 or greater, Intel only)
* Safari 2 & 3 for Mac
(OS 10.4.8 or greater, Intel only)

How about just use solutions that are not operating system and browser dependent. It is like these people don't know that the web technology provides methods to just distribute your content and let the user access it however they want.

Related: What Kind of Management Does This? - VIP?

Saturday, August 02, 2008

Bad Customer Service

Response to: Comcast Called Me Back In Regards To My Post About My Outrageous Bill

I wouldn't agree everyone tries to rip you off. There are a few companies that get a huge portion of the complaints: Comcast, Verizon, several banks... You don't hear huge numbers people complaining about being ripped off by Southwest Airlines, Geico, Crutchfield, Toyota... Some companies chose to provide value to customers and take some profit in doing so. Others continually seek to rip off customers at every turn. Thankfully the internet is providing a medium to publicize those companies that do so.

Consumerist, is a great site, doing what it can to counter some of the horrible service

Related: Customer Service is Important - Incredibly Bad Customer Service from Discover Card - Is Poor Service the Industry Standard?

Saturday, June 09, 2007

Company Culture



via: Crunch Notes "Whatever company this is, they should use this as one of their primary recruiting tools." It certainly does show part of the culture of the company. The company? Connected Ventures, which is now part of InterActive Corp. Specifically, these are the teams from Vimeo, CollegeHumor, and Busted Tees.

Thursday, May 03, 2007

More Phone Company Fees

Once again Verizon shows the tendency to charge customers fees at every turn. Any wonder I have no interest in being a customer of them no matter how many junk mailings they send me with marketing claims? Yeah I am going to trust them to clearly disclose all the hidden fees they will charge - not.

Not calling causes a fee:

Verizon last month introduced the $2 fee. It is charged to customers who could dial out for long distance, but don't subscribe to a long-distance service and don't make long-distance calls. Durham retiree Daniel Bius discovered the $2 charge on his April bill. He says he has no use for Verizon's long-distance calling plan because he makes long-distance calls on his cell phone.

"Even though I don't have a plan with them, they say I still have the ability to make a long-distance call if I ever need to, so I have to pay them $2 a month?" Bius said. "What am I supposed to do? Am I supposed to pay them $2 for no reason?"
...
State regulators require phone companies to provide basic local-phone service. The phone companies have to give customers a way out of the new monthly fee -- but they will charge another fee to eliminate the first fee. For instance, if Bius pays a $6.75 charge to have his long-distance access disconnected, Verizon will end the monthly $2 fee, but block his outgoing long-distance calls.


How ridicules, pay us a monthly fee. Or if you don't want to pay us a don't pay the monthly fee fee.

Related: Telephone Savings - Customer Service is Important - Verizon Limits Its "Unlimited" Wireless Broadband Service

Wednesday, September 06, 2006

Bad Behavior

Shining the light on the actions of those in power:

Robert Scoble, who rose to fame as Microsoft blogger and recently left for a small company, is adding his voice to those blasting HP:Corporate hypocrisy by HP

Check this out: testimony in front of the U.S. House of Representatives by HP's Scott Taylor, Chief Privacy Officer. What did he tell them? “First and foremost is that privacy is actually a core value at HP. As a company, HP is 100 percent committed to excellence in consumer and employee privacy…

Now compare that to what Patricia Dunn, chairwoman at HP apparently did. Lying. Breaking the law. And invading people's privacy.

If Patricia Dunn is ever hired to a company I'm working for I'm instantly quitting.


My comment on his blog post:

The best most of us can do is expose such bad behavior. It is up to those who control the votes of shareholders to act (which includes those representing most posting her probably - as anyone with an index mutual fund or large cap… probably owns some HP stock). If there are board members that were not in on it, they can either try and oust those that knew, or resign, or face the consequences.

Most likely the consequences won’t be much, but if the behavior is not accepted and publicity continues eventually action will be taken. As soon as most significant thought leaders turn away though the effort will likely stop. Keep up the good work publicizing such bad behavior.

One potential area for pressure against those who take such action is through other boards they sit on. And through places they might want to speak. If a business school brings her in to speak what does that say about their commitment to ethical behavior. I’m sure the school has classes on ethics but what do their actions say?

From HP's web site: "She also serves on the advisory board of the UC Berkeley Haas School of Business, as well as the conference board’s Center for Corporate Governance, and serves as the director and a member of the executive committee of Larkin Street Youth Services in San Francisco." You might ask the conference board’s Center on Corporate Governance how to oust a board chair that has broken the law and violated the policies of the company and see what they suggest. I can’t imagine they would respond to me. But they might get enough pressure if you ask them (and others take on your cause) to be compelled to respond. I think that question is exactly the type of thing they are in business to address.

And here discussion of the "anonymous hold" used to block a bill to provide the public a simple way (modeled on the search engine concept) to find out how tax dollars are spent:

Spokesman for Sen. Tom Coburn (R-OK) confirms that Stevens is the one with the hold and called the move "unexpected." "We met with his staff last week," he said, "and provided a detailed cost-benefit analysis of our bill. Senator Stevens then lifted his hold. Only Senator Stevens can explain why he reversed his position and reinstated his hold."

Wednesday, August 31, 2005

CEO Pay: Obscene

CEO pay: Sky high gets even higher:

In 2004, the ratio of average CEO pay to the average pay of a production (i.e., non-management) worker was 431-to-1, up from 301-to-1 in 2003


These levels are ludicrous. I could accept maybe Bill Gates, Warren Buffett and a handful of others getting these types of pay packages but those who you might think deserve such high pay don't receive such large pay.

In 1990, for instance, CEOs made about 107 times more than the average worker, while in 1982, the average CEO made only 42 times more.

The cumulative pay of the top 10 highest paid CEOs in the past 15 years totaled $11.7 billion.

The report also compares the growth in average CEO pay - which was $11.8 million in 2004 - to the growth in the minimum wage. Had the minimum wage risen as fast as CEO compensation since 1990, the researchers calculated, it would now be $23.03 an hour instead of just $5.15. And the average production worker would be making $110,126 a year instead of $27,460.

Some might try to argue that these CEO's are being paid this due to the free hand of the market (supply and demand). I find it crazy for people to actually believe this. These pay rates are being made by board of directors who seem to be more interested in helping out the "Brooks Brother Bureaucrats" that they play golf with. Many of these companies are paying large percentages of what would otherwise be the companies total profit to their Brooks Brother Buddies who then support them (through high paid board seats, sitting on boards of their companies and approving similar exorbinant pay etc.).

I would love to see a report showing the executive pay of these overpaid CEO's compared to the net profit of the companies (showing what percentage of the profits are being paid to these individuals compared to the stock holders and other workers). At some point I will do this myself if someone else doesn't. Obviously unjustified practices suffer when those practices are publicized.

And I believe the more publicity of exorbinant packages the better. In my opinion, this harmful practice is due to a few people taking the profits owed to other workers and shareholders and giving it to their pals. You can certainly see example after example where these payments don't seem possible to justify as a wise use of companies money. However, this change will not be easy, the Brooks Brother Bureaucrats have an incentive to continue the current system where they can enrich themselves by enriching their pals.

My previous comment on Dan Gilmor's blog post (Mar 2005) on this topic:

Actually it probably didn't influence their decision much. They probably would get the same payouts whoever they sold to. That seems to be part of doing business in America.

Hopefully, at some point, the cry over the shareholders money going to the "brooks brother bureaucrats" (my name for high paid USA bureaucrats who pay huge amounts to their friends and colleagues) will greatly reduce this practice. I am glad to see you point out these payments to your readers.

I don't believe those payments are justified. It is especially disconcerting to see the people who claim competitive forces require those jobs filled by people who don't wear expensive suits, and play golf with them at their country club, have to be shipped overseas pay themselves huge amounts. It is amazing the ridicules payments that are made to so many high paid American executives. In my opinion, very few who are paid over $1 million are worth it (though some are).

Yes they are able to get someone to pay them such an amount in the marketplace. But I think those that authorize the payments, do so, not in the interest of those they represent but to make their own lives easier (so they can get reciprocal unjustified large payments). I believe we are slowly reducing the level of this behavior, but that may be more my hope than reality.

The 5 most Outrageously Overpaid CEOs


Wednesday, August 24, 2005

The 5 most Outrageously Overpaid CEOs

The 5 most Outrageously Overpaid CEOs

While the Ovitz payout may have been legal, it's the type of corporate behavior that costs investors millions of dollars every year. And it's not just a few spendthrift companies throwing good dollars after bad leaders. We scoured corporate regulatory filings and found plenty of examples of overpaid underachievers in executive suites. Ultimately, we came up with a list of the five most overpaid bad chief executives, and another of the five most underpaid good execs.
...
It’s getting worse, by some measures. The ratio of CEO compensation to pay for the rank and file was roughly 200-to-1 in the early 1990s. Now it's more than 450-to-1, says David Lewin, a professor at the UCLA Anderson School of Management. Worse, many average workers are now paid partly through bonus systems and stock options, meaning their livelihoods are tied to often-volatile company stocks. Many executives have similar incentives, but at a vastly greater scale. They win almost regardless of how their stocks fare.


It really is a disgrace.