"Back in 1990, Michael Jensen wrote a landmark HBR article arguing that "It’s Not How Much You Pay CEOs, But How." He wanted boards to adjust pay according to company performance as shown by stock price. V.G. Narayanan’s recent post in this debate goes a step further, arguing that executive pay should be tied aggressively to a company’s specific strategy..."
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Source: HarvardBiz Blog
"A promotion plan for an employee is usually the responsibility of the promoter, not the promotee. That’s because a promotion means a role with greater responsibility — managing a new project, replacing someone who has left, or expanding a current job with more staff or tasks. The need for that new or bigger role is decided by the higher-ups as part of solving a business problem in line with the company’s goals. Since it’s not typical for the goals of the organization to be set by an employee, we know your boss is playing some kind of game by making you guess what it will take to get promoted..."
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Source: HarvardBiz Blog
"Universum’s annual rankings are out on the Top 100 Companies that MBA grads long to work for. Who’s who this year? Well, Google takes #1 spot as usual (3rd year in a row) but there have been some interesting shifts this year.
First, the top 15:
- Google
- McKinsey & Company
- Bain & Company
- Goldman Sachs
- Apple Computer
- The Boston Consulting Group
- Walt Disney
- Nike
- J.P. Morgan
- Johnson & Johnson
- The Blackstone Group
- Microsoft
- General Electric
- Morgan Stanley
- IDEO
Now, on to some analysis: Gone, of course, is investment bank Lehman Brothers (which collapsed last fall); Merrill Lynch (no longer an independent firm after being bought by Bank of America in September)plummeted to no. 55 from no. 18 last year..."
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Source: MBA Podcaster
"The Tuck School of Business at Dartmouth College hopes to give its first-year students an advantage by offering private equity firms that hire them for the summer an added bonus in the form of a salary subsidy, the Wall Street Journal reports. With private equity firms focused on trimming expenses, and in some cases personnel, finding a summer internship in this economy can be tough going. This special program will pay up to half of a student intern’s salary if a private equity firm or portfolio company takes them on as a summer associate, according to Colin Blaydon, who mentioned the program at a recent event sponsored by the Association for Corporate Growth’s Boston chapter, WSJ reveals..."
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Source: Stacy Blackman
"Compensation for top management should and will fall over the next two years, board members predict...
Amid shareholders’ mounting rage over what they see as wantonly excessive compensation for under performing executives, defenders of high pay have had one steadfast rebuttal: It’s needed to retain top management talent. But corporate boards, it seems, aren’t buying it. In a survey of board members released Tuesday by consulting firm Watson Wyatt, relatively few of the 85 participants were worked up over the prospect of losing company leaders..."
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Source: CFO
"Dramatic shifts in the global economy have caused many MBAs to reassess their career options upon graduation, according to a recent article in the Boston Globe. MBAs who in the past would have given little thought to jobs any where but on Wall Street are now instead considering launching business of their own, shifting to consulting or exploring emerging industries once considered a gamble..."
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Source: ClearAdmit
"Female MBA graduates earn less than their male colleagues, a gap that grows even greater over time, according to a recent paper from the National Bureau of Economic Research. The results of the paper were published last week in the Economist. The authors tracked the earnings of 1,600 MBA graduates from the University of Chicago Graduate School of Business (now Chicago Booth) between 1990 and 2006. According to their findings,males edged out females only slightly in income in their first year out of school. But the pay discrepancy increased steadily over time, with males earning as much as 90 percent more than their female counterparts 10 years after graduation..."
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Source: ClearAdmit
"It might seem a peculiar time to talk about talent. Aren’t most people these days happy just to have their jobs? Aren’t employers more concerned about outplacement than recruiting? And what company has the budget to fund expensive training programs? Even these questions indicate a dated view of where talent is and how to get the most out of it. Sure, no one disputes the importance of talent, even in a recession. But, as a Deloitte report contends (.pdf link), companies spend entirely too much time focused on attracting and retaining talent. Moreover, as they do, they often lose sight of what appeals to and keeps hold of talent in the first place..."
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Source: HarvardBusiness
"Enrollment in business schools is booming as would-be chief executives and entrepreneurs sit out the worst of the economic slowdown with a year or two of invaluable study...
But what of those finishing their MBA this year? For them, it’s currently a slightly more gloomy picture, one highlighted by a new survey warning that some business school graduates could struggle to find their dream job when their program ends in a few months..."
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Source: CNN
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