In review: Golden parachutes reward risk or moral hazard?

September 2010 in review. A roundup of blogs from the previous month: Golden parachutes reward risk or moral hazard? — No matter the solutions recently suggested, like England’s Cadbury and Hampel codes for public companies, America’s recent financial-reform act, or clawback clauses, there remains one conflict:  business ethics will never win over moral hazard. The bureaucrat and bureaucracy revisited — Organization that grow too quickly is risk in an ability to perform work in a repeatable consistent way.  As organizations grow, one-off solutions that may have been needed in the early days can now cripple an organization and increases risk to deliver quality goods and services at a good price.  Bureaucracy provides investors and customers accountability.  Bureaucracy is important to manage risk. What for-profits can learn from non-profits — The organizations that maximize efficiency of either are free to deliver great value to their …

Golden parachutes reward risk or moral hazard?

The July 31st Economist wrote an article called The wages of failure and brought an interesting perspective to those CEOs dismissed because or PR disasters.  Do golden parachutes reward bad leadership or reward risk crucial for a firm to rebuild, re-imagine, and compete within capitalism? The article acknowledges the outrage many have to folks like Tony Hawyard, former CEO of BP who famously uttered, “I’d like my life back”, when pestered about BP’s response to the Gulf of Mexico oil leak. The Economist brings up that the golden parachute payout is not a reward for leadership incompetence, but a payout for past services, in Mr. Hayward’s case, 28 years of successful work at BP. The blood lust to condemn and punish CEOs, like Mr. Hayward, for receiving millions in compensation leaves out crucial blame for the board of directors who, …

In review: A key to why so many companies blow it in social media?

August 2010 in review.  A roundup of blogs from the previous month: A key to why so many companies blow it in social media? — Do companies blow their social media efforts because they are afraid to fail, preferring to fall back on old marketing rules?  The comments section offers a chance for Jonathan Salem Baskin and Hank Wasiak to debate my point. Business as a foreign language for HR professionals — A recap of the Human Resource Executive Online article title “Is Business a Foreign Language for HR?” Evaluating risk: financial models versus competency models, part 1 — Models are a way to understand the key decisions you may need to face and hedge the bets you’re placing.  Ultimately, investment risk is a risk for a team to deliver as much as it is a market or financial projection. The intervention …