Half a century ago, the ratio of CEO-to-worker pay was around 20-to-1, according to the Economic Policy Institute. In 2013, it was 295.9-to-1. CEO compensation has increased by 937 percent just over the last three decades (since 1978). The rise compares with a dismal 10.2 percent hike for the average U.S. worker over the same period, putting into stark contrast the relative fortunes of the superrich and everyday employees in an increasingly economically divided America.
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Article by Dr Dicky Els and Terrance M. Booysen
With the accelerated pace of global development, fuelled by South Africa’s socio-economic and political uncertainty, there are obvious knock-on business implications that increase business risks, not least of which includes dampening the mood for local investment. It is therefore not surprising to see many organisations downsizing, restructuring and even being forced to shrink their trading operations in the face of declining revenue and higher cost pressures. Since the 2007-2008 global financial market crisis, organisations are operating in turbulent markets and have to constantly adapt to increasing business uncertainty and changing circumstances. Whilst there may be numerous economic challenges the organisation’s leadership must deal with in order to remain a sustainable and profitable concern, they also have to be acutely aware of the manner in which these severe economic stressors impacts their workforce.
When the United States entered World War I, the U.S. Army boosted recruitment with a poster. Uncle Sam, symbolizing the federal government, pointed to the viewer: “I want you.” So it is with the many federal agencies that today have oversight over major companies and their directors and officers (D&O). If you or your organization have run afoul of a federal regulation, intentionally or not, the “war” is on. These agencies want you—in court.
The fish rots from the head, Chinese expression that stands out that the Board of Directors, as head of the organization is key to have a culture that promotes compromise among people working their; on the contrary, the company will not stand for long. Commitment is the result of a tacit or formal agreement among people agreeing on a given delivery in a specific timing and form. Commitment is what he or she (or they) asks for or offers and he or she (or they) accepts to receive what is committed in the right time frame and form and that appraisal judgments will be made reciprocally in relation with what is committed by both parties. The commitment involves both parties, since who asks for or who receives the offer must state his or her judgments in time as well, and reward the fulfilling or compensate for and repair should he had not kept in force the validity of the request. As a result of these judgments there may be compensations and the trust capital for future commitments of the company will improve or decrease. For this process to occur, the commitment of the interlocutors required:
The Franco British Chamber of Commerce
Founded in 1873 and with a membership network of over 700 companies, the Chamber’s objective is to lead the Franco-British business community in France.
By Terrance M. Booysen and peer reviewed by David Loxton (Partner: Dentons)
Directors and officers of all organisations are facing an increased risk of personal exposure. Their roles and responsibilities have become progressively more onerous in recent years, mainly as a result of new legislation and regulatory requirements, stakeholder pressure and increased governance and social responsibilities, as well as the complexity of trans-continental and macro-economic trading conditions.
By Terrance M. Booysen and reviewed by Megan Grindell (Director: Carter DGF Risk Management)
In today’s heightened times of public scrutiny and calls for ethical leaders, it’s not surprising that many concerned citizens have become far more demanding for good governance and transparency. Social media has been a major contributor to this call, such that a person’s privacy — including matters such as their social pleasures and behaviour — are broadcasted in seconds to almost any corner of the world. For example, if a work colleague is an avid user of Facebook or Twitter, it’s not too difficult finding out what that person’s likes and dislikes are, what gyms or sport clubs they attend and how often, right down to discovering their dream car or accommodation.
In our previous article dated 09 June 2016, BIA proposed a novel addition to the global investment lexicon by suggesting we add the term Vestor. According to BIA, the definition of a Vestor is “any person who has any personal stake in the outcomes produced by an organization.” A Vestor has a vested interest, synonymous with being a stakeholder.
The precise principles of Corporate Governance are published globally through assigned local government regulators within their respective countries. These fundamentals are put into place in order to adequately regulate and manage the behavior of large-sized corporations whom are publicly listed on the stock market. This ideology is primarily set to protect the rights and interests of the shareholders from more than one standpoint.
By Terrance M. Booysen and peer reviewed by David Loxton (Chief Executive Officer: Africa Forensics & Cyber)
Theory and practice can be worlds apart, and unsurprisingly, in the realm of morality and ethics, the divide between the two is often clearly pronounced. While it may be easy for employees to claim that they would without question report any observations of fraud, corruption, or other impropriety being perpetrated in the workplace, it may not be that easy for them to do so in practice. Would their job be jeopardised? Would they lose their means of supporting themselves, their family and extended family? And what implications would it have for their chances of securing future employment, not to mention the social implications and, in more high-profile cases, the media and social media interest?