Archive for the ‘Blog Posts’ Category

Some Terrible Financial Advice: The

Some Terrible Financial Advice: The “Emergency Fund”

By The Banker | Blog Posts, Personal Finance

If you frequently read articles, books and blog posts about personal finance – as is my unfortunate wont – you quickly stumble upon one of the sacred cows of the genre: “The Emergency Fund.” “The Emergency Fund,” the grown-ups tell us (as in this post that showed up in my inbox yesterday,) consists of 3 [&hellip

Time out for Poetry: Ithaka

Time out for Poetry: Ithaka

By The Banker | Blog Posts

The students in my Personal Finance course took their final exam yesterday, and many of them will graduate from college very shortly. One of the themes of the course, of course, was ‘getting wealthy.’ In addition, that’s the theme of the book I’m trying to write.  One of my friendly early readers of my book proposal draft mentioned [&hellip

Executive Pay with Equity Awards: It Takes a Buffett to Push This Agenda

Executive Pay with Equity Awards: It Takes a Buffett to Push This Agenda

By The Banker | Blog Posts, Wall Street

I recently pointed out the absurdity of certain executive pay packages which result from stock or stock option awards. Rather than matching “pay to performance” as proponents claim, the equity awards to executives often create absurd payouts for bad performance, or substitute lucky timing for skill. If the stock goes up during an executive’s tenure, or even [&hellip

A Fascinating Executive Compensation Story - Yahoo!

A Fascinating Executive Compensation Story – Yahoo!

By The Banker | Blog Posts, Wall Street

Every once in a while – ok, every couple of weeks – we get hit in the head with a new example of how “executive compensation” and “executive performance” have close to zero correlation in practice. The key to this disconnect is typically “incentive pay” through company stock or stock options. This week’s story about Yahoo’s [&hellip

Mike Bloomberg: More Bucks for Less Bangs

Mike Bloomberg: More Bucks for Less Bangs

By The Banker | Blog Posts, Texas

I try to approach contentious political issues with an open mind, willing to be swayed by new evidence, or at least willing to acknowledge that the other side has some valid points. Surely my ideological opponent has logical thoughts, given their starting principles, right? I have no monopoly on good ideas, I remind myself, and [&hellip