New business theory shows compensation plans can make or break a firm
Envy is at the root of the financial sector’s problems according to a new study. Greed has been blamed for most of Wall Street’s woes and the banking sector’s recent collapse, but two professors at Washington University in St. Louis say envy is really to blame. And, they warn, envy is driving top talent from the financial sector and could wreak even more havoc on the economy in the months to come.
What happens in the boardroom doesn’t stay in the boardroom
Corporate governance has been in the forefront of public debate lately, thanks to such high-profile events as options backdating, the awarding of inflated CEO compensation packages and efforts to augment shareholder empowerment. These larger scandals have implications that reach beyond the boardroom into every aspect of an enterprise. Ultimately, the transgressions take their toll on all of society, according to Stuart Greenbaum, former dean of the business school at Washington University in St. Louis.