Archive for January 24th, 2012

Let’s play Obama Bingo during tonite’s State-of-the-Union Address …

January 24, 2012

Irish bookies are  laying odds on which clichés President Obama will drop first and say most often in tonite’s State of the Union address.

Why not turn it into a game …. like students do with boring profs.

Randomly post the most likely clichés to squares on 5 x 5 game cards.

First player to score a row, a column, a diagonal or the 4 corners with “he said it” marks wins the game.

Below are the official odds on what Obama will say first.

Note My “lock” prediction isn’t even on the list: “Let me be perfectly clear” … a couple of my other favorites are bolded.

Odds   Cliché

8/1     We have more work to do
10/1     Health care reform
10/1     As I stand here today
12/1     Fundamental belief
12/1     God bless America
12/1     Crossroads of history
12/1     Defining moment
12/1     Make Washington work
14/1     Common purpose
16/1     Pursuit of happiness
16/1     Building a better America
16/1     Reduce the deficit
18/1     War on terror
18/1     It won’t be easy
18/1     Hungry for change
18/1     My civil liberties
20/1     Honor for me
20/1     I have a dream
20/1     Willing to listen to each other
20/1     Yes, we can
20/1     Don’t get me wrong
25/1     Hard to believe
25/1     I’m fired up
25/1     Withdraw our troops
25/1     There are better days ahead
25/1     Do-nothing Congress
25/1    We’ll have to make hard choices
25/1     We can be one people
25/1     A new direction
33/1     For far too long
33/1     Safe from harm
33/1     Jobs to the jobless
33/1     Reshapes our economy
40/1     Deepest gratitude
40/1     Greatness of our nation
40/1     Possibilities of this nation
40/1     Florida primary
50/1     Believe in what this country can be
50/1     Unity is the great need of the hour
50/1     In the face of despair, you believe there can be hope
50/1     We can work together to keep our country safe
50/1     Abiding faith
66/1     Brighter day will come
66/1     Publish tax returns
66/1     Washington has a long way to go
80/1     Overcome the adversity
80/1     Bloated federal government
100/1     Diversity of my heritage
100/1     Yes, we might
250/1     Life is like a box of chocolates

Source: Washington Times

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Why is exec comp so far out of whack?

January 24, 2012

Most folks seem to agree that executive compensation – especially CEO’s pay – is wildly excessive.

How did it get that way?

As partial explanation, I think that two well-intended legislative actions started the ball rolling with unintended consequences.

The first is Item 402 of  SEC Regulation S-K:

Item 402 – Executive Compensation. The SEC regulations governing disclosure of information about executive compensation are contained in Item 402 of Regulation S-K. Pursuant to Item 402, a public company must disclose to its shareholders information concerning compensation paid to its CEO and its four most highly-compensated executive officers (its “named executive officers”) during the last fiscal year, as well as its directors, in certain registration statements, its annual proxy statement, and certain other filings under the Securities Exchange Act of 1934, as amended (“Exchange Act”).

The motivation for the regulation is clear: provide shareholders with transparency into the way that top execs were being paid.

Sounds like a right thing to do, right?

The unintended consequence: For the first time, top execs had factual benchmarks re: how they racked up relative to their peers.

Underpaid execs used the data to get pay boosts; highly paid execs used the data to maintain their spreads against their less deserving peers.

For many (most?) execs, compensation became a manhood issue … and of course, bigger is always better.

Executive comp wars broke out and escalated.

A second legislated driver was Section 162(m) of the Internal Revenue Code:

Section 162(m) of the Internal Revenue Code generally limits the corporate tax deduction for annual compensation paid to executive officers named in the Summary Compensation Table to $1,000,000, unless the compensation satisfies the requirements for performance-based compensation. Stock options, performance shares, and cash-equivalent performance shares granted under the Company’s stock incentive plans have generally been entitled to the full tax deductions available because the compensation has been considered performance-based and not applied against the $1,000,000 limit.

Again, well intended.

Why should taxpayers subsidize over-sized exec comp?  If companies want to pay execs more than $1 million, they can … they just can’t take a tax deduction for the amount over $1 million.

So, what’s the problem?

We,, it’s the qualifier: “unless the compensation satisfies the requirements for performance-based compensation

To circumvent the rules, companies shifted to performance-based compensation tools … think bonuses and stock options.

So, bonuses became a larger part of comp packages and stock options became the major mechanism for “rewarding” execs.

In 1970, stock based compensation was less than 1 percent of compensation.

By 2000, it was around half of compensation.

Source

The heavy emphasis on stock options certainly provided some motivation to execs to boost share prices (that’s good), sometimes by focusing too aggressively on short-term results (that’s bad).

More to come …

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From typos to tardiness … how ‘bout some attention to detail?

January 24, 2012

Excerpted from EVERYTHING COUNTS! 52 Remarkable Ways to Inspire Excellence and Drive Results by Gary Ryan Blair

From typos to tardiness, many people and organizations act as if details just don’t matter much

Nothing could be further from the truth.

We must do little things correctly …  When each detail is attended to, and each step in the process is given careful attention, the result will inevitably be of the highest quality.

Successful people in many walks of life understand the importance of detail.

  • Doctors and nurses understand that the slightest mistake or loss of focus can result in tragic consequences that carry massive liability.
  • Engineers and architects know that the stability of the most gigantic structure depends on the integrity of its smallest element; a failed bolt or a misplaced pin can have huge consequences.
  • Computer programmers spend their careers tightly focused on detail, as one incorrect digit in a code of millions can create an operational nightmare for the end user.

The magic behind every outstanding performance, exceptional meal, and fine piece of furniture or jewelry is found in the smallest of details.

No matter what business you are in, you will be continuously challenged by larger problems that could have been prevented if you had paid closer attention to the details at the beginning.

Think about it …

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