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

The New MyRA - From the Department of Bad Retirement Ideas

The New MyRA – From the Department of Bad Retirement Ideas

By The Banker | Investing, Personal Finance, Taxes

The federal government – following an idea proposed during Obama’s January 2014 State of the Union address – will role out a new simplified IRA plan later this year, designed as a starter retirement account, known by the catchy name MyRA. Geared to lower- and middle-income earners, the accounts will have the following features: 1. Automatic deduction [&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

Book Review: Words and Money by Andre Schiffrin

Book Review: Words and Money by Andre Schiffrin

By The Banker | Book Reviews

Somewhere on my Top 5 thematic topics on Bankers Anonymous is a hard-core media critique – which I refer to in kinda-joking-kinda-not joking shorthand as the “Financial Infotainment Industrial Complex.” When I read the Wall Street Journal or listen to financial news on the radio I find myself talking back – usually although not always [&hellip