Have you ever wondered why some CEOs earn hundreds of times more than their employees? In recent years, the topic of excessive CEO compensation has gained widespread attention and sparked intense debate. While some argue that CEOs deserve high pay for their leadership and contributions to their companies' success, others believe that such compensation is unjustified and contributes to economic inequality. In this write-up, we will explore the justifications for and advances in the area of excessive CEO compensation, and discuss the impact it has on the economy and society at large. One common argument in favor of excessive CEO compensation is that it serves as an incentive for CEOs to work harder and make better decisions. Supporters of this view believe that the promise of a large salary and bonuses motivates CEOs to maximize their companies' profits and shareholder value. However, critics argue that this argument is flawed, as there is little evidence to suggest that higher pay leads to better performance. In fact, some studies have found that excessive CEO compensation can lead to short-term thinking, risk-taking, and unethical behavior. In recent years, there have been several advances in the area of excessive CEO compensation. One significant development is the increased attention and scrutiny placed on CEO pay by shareholders, activists, and the media. This has led to a greater focus on the link between CEO pay and company performance, as well as the need for greater transparency and accountability in executive compensation. Another development is the rise of shareholder activism, in which investors use their power to influence companies' decisions on CEO pay and other issues. To fully understand the topic of excessive CEO compensation, it is important to be familiar with certain academic terms and concepts. One such term is "pay ratio," which refers to the ratio of CEO pay to median employee pay. Another important concept is "stock options," which are a form of executive compensation that gives CEOs the right to buy company stock at a set price. Additionally, "agency theory" is a key concept that is used to explain and resolve issues in the relationship between CEOs and their companies' shareholders. Several leading academics have made significant contributions to the study of excessive CEO compensation. One of these scholars is Lucian Bebchuk, a professor at Harvard Law School who has written extensively on the topic. Bebchuk argues that excessive CEO pay can lead to a misalignment of interests between executives and shareholders, and calls for reforms to address this issue. Another important academic in this area is Steven N. Kaplan, a professor at the University of Chicago Booth School of Business. Kaplan's research focuses on the link between CEO pay and company performance, and he has found that the relationship between the two is more complex than previously thought. Excessive CEO compensation is a complex and controversial topic that has significant implications for the economy and society.

Technology has been a driving force in shaping our world and shaping the future. With the advancement of technology, come new challenges and opportunities. One such challenge is the taxation of technology. Did you know that technology companies are among the largest tax evaders in the world? According to a study by the European Commission, the top 30 tech companies in the EU pay an effective tax rate of just 9.5%, compared to the average 23.2% for other companies. This raises questions about the fairness and sustainability of our tax systems in the digital age. Leading academics in the field, such as Gabriel Zucman and Matthew Kirshner, have proposed solutions such as a global minimum tax rate for multinational companies and a tax on digital revenues. They argue that such measures are necessary to ensure that technology companies pay their fair share and to fund public goods, such as education and infrastructure, that are essential for technological progress. But what are the potential consequences of such measures? Some experts, such as Alex Cobham, warn that a global minimum tax rate could lead to a race to the bottom, as countries compete to lower their tax rates to attract investment. Others, such as Dhammika Dharmapala, argue that a tax on digital revenues could hurt innovation and stifle competition. As young academics, it is important to explore these issues and to think critically about the role of technology and taxes in shaping our future. By exploring these themes and developing your critical thinking skills, you can become informed citizens and active participants in shaping the future of technology and taxes.

Robert Frank's "The High-Beta Rich" exposes the untold story of the high-beta rich and their impact on the American economy. With vivid storytelling, Frank takes readers inside the mortgaged mansions, blown-up balance sheets, and repossessed Bentleys and Gulfstreams. The book highlights how the top 1% of the population, who control more than a third of the country's wealth, are becoming an increasingly unstable force in the economy, wreaking havoc on communities, employment opportunities, and government finances. This engrossing read is a must for anyone interested in understanding the national consequences of high-beta wealth. Recommended for economics and business students, policymakers, and anyone interested in understanding the impact of wealth inequality on the economy and society. The book's insights into the volatile nature of high-beta wealth and its consequences for communities, employment opportunities, and government finances make it an important read for those concerned with economic stability and social justice. The book's vivid storytelling and analysis of the lives of the high-beta rich also make it an entertaining read for anyone interested in the lifestyles of the wealthy.

In 2015, the world was rocked by the revelation that Volkswagen, the world's largest automaker, had been systematically cheating on emissions tests for its diesel vehicles. The scandal involved over 11 million vehicles worldwide, and led to fines, recalls, and a major blow to Volkswagen's reputation. But how did this happen? At the heart of the matter was a failure of corporate governance. Volkswagen's management structure, which gave its CEO enormous power and limited oversight by the board of directors, created an environment where unethical behavior could thrive. Specifically, Volkswagen had developed a software "defeat device" that would reduce emissions during testing, but then switch off during regular driving, allowing the vehicles to emit harmful pollutants at levels far above legal limits. This was not only illegal, but also a breach of ethical standards that should have been caught by the company's internal controls. Unfortunately, those internal controls were weak, in part because of the way Volkswagen was organized. The company was controlled by a group of families and other stakeholders, who had more power than the shareholders, and who were reluctant to challenge management decisions. This created a culture of deference to the CEO, who in turn was focused on profits and market share above all else. Academic research has shown that the Volkswagen scandal is not unique, and that weak corporate governance can lead to a range of negative outcomes, from financial fraud to environmental damage. For example, studies by leading scholars such as Lucian Bebchuk and Jesse Fried have shown that companies with dual-class share structures, like Volkswagen, are more likely to engage in unethical behavior and less likely to respond to shareholder pressure. But there are also solutions. Research by Nell Minow and others has shown that independent directors, strong shareholder rights, and a commitment to ethical values can help prevent governance failures and improve corporate performance. By exploring these and other topics related to corporate governance, students can gain a deeper understanding of how companies operate, and how they can contribute to a more ethical and sustainable business world.

The topics of securitisation and the global financial crisis are not just about numbers, facts, and statistics, but also about human failure, greed, and risk. It's a tale of how a small spark in the world of finance led to a massive explosion that shook the global economy to its core. Let's start with the basics. Securitisation is the process of pooling together various financial assets and then selling securities backed by those assets to investors. The idea behind securitisation was to spread the risk of default among many different investors and make the financial system more stable. However, the reality was far from what was promised. The global financial crisis of 2008 was triggered by the collapse of the housing market, which had been the backbone of the securitisation industry. The crisis was caused by the failure of the rating agencies, who were supposed to assess the risk associated with securities, but instead, gave high ratings to securities backed by risky loans. Ever heard of the term NINJA loans? No Income, No Job, No Assets - these were the types of loans that were being securitised and sold to investors. The financial industry was full of these loans, and the ratings agencies were happy to give high ratings to these securities, leading to the financial crisis. Leading academics such as Raghuram Rajan and Joseph Stiglitz have made significant contributions to the field of securitisation and the global financial crisis. Rajan highlighted the dangers of the financial system's reliance on securitisation, while Stiglitz criticised the rating agencies for their role in the crisis. We hope this write-up has inspired you to dive deeper into the world of securitisation and the global financial crisis. It's a fascinating topic with real-life examples and lessons to be learned. So, grab a book, turn on a documentary, or start a project, and let your imagination take you on a journey to a world of risk, failure, and exploration.

If you're a student who is intrigued by the complex and ever-changing world of business, corporate law could be the perfect career path for you. Corporate lawyers play a critical role in advising companies on legal matters and helping them navigate the intricate web of laws and regulations that govern modern commerce. Here's a closer look at what a career in corporate law entails and why it might be a great fit for you. Corporate law is a fascinating field that blends business and law, with a focus on the legal issues that arise in the context of corporate activities. Corporate lawyers help companies with a wide range of legal matters, such as structuring and negotiating business transactions, complying with regulatory requirements, and resolving disputes. Some corporate lawyers work in-house for a single company, while others work for law firms that provide legal services to multiple clients. One of the most appealing aspects of a career in corporate law is the opportunity to work on high-stakes deals and transactions that can have a significant impact on the global economy. For example, a corporate lawyer might work on a merger between two multinational companies, help a startup navigate the legal hurdles of an initial public offering (IPO), or advise a Fortune 500 company on a major joint venture. The work can be challenging, but also incredibly rewarding. In terms of day-to-day responsibilities, corporate lawyers often research and analyze legal issues, draft contracts and other legal documents, and advise clients on the legal implications of various business decisions. Some corporate lawyers specialize in particular areas of law, such as securities law, tax law, or intellectual property law. Others work in related fields such as mergers and acquisitions, private equity, or investment banking. To become a corporate lawyer, you'll typically need to earn a law degree (J.D.) and pass the bar exam in the state where you plan to practice. Some popular undergraduate majors for aspiring corporate lawyers include business, economics, and political science. Many law schools offer courses and clinics focused specifically on corporate law, and some also offer joint degree programs that combine law and business. In terms of personal attributes, successful corporate lawyers tend to be analytical, detail-oriented, and able to think strategically. They should also have excellent communication skills, as they will be working closely with clients, other lawyers, and business executives. The job prospects for corporate lawyers are generally strong, particularly at top law firms and in-house legal departments at large companies. Many of the world's leading law firms have dedicated corporate practices, and some of the most well-known names in the business world, such as Goldman Sachs, Microsoft, and Procter & Gamble, have large legal departments that employ corporate lawyers.

Why do companies manipulate their financial reports? A new study shows that the financial incentives of rank-and-file employees play a significant role in shaping corporate financial reporting. Researchers found that higher pay and fixed compensation for junior accountants can improve accounting quality, while cash bonuses tied to corporate earnings can lead to aggressive revenue recognition and misreporting. Learn more about the bean counters' dilemma and its impact on financial reporting in this thought-provoking study by the Stanford Graduate School of Business and the University of Washington's Foster School of Business.

Do you want to make a difference in the world and help create positive social change? Social impact investing might be the career for you! This field is all about investing money in organizations that aim to create social and environmental impact alongside financial returns. It’s an exciting and meaningful field with a growing impact on our society and the world we live in. As a social impact investor, you’ll be part of a movement that is transforming traditional finance by investing in ventures that align with social and environmental values. Your work can span a wide range of industries, from renewable energy and affordable housing to health care and education. For example, you could help fund a community health center or a microfinance organization that supports small business owners in developing countries. The potential areas of specialization in social impact investing are diverse and can vary depending on the specific mission of the organization. Some impact investors focus on specific sectors or industries, while others work on global issues like climate change and poverty alleviation. Some even work to create impact investing policies and frameworks, shaping the industry as a whole. Typically, a degree in finance, economics, business or a related field is required for this career. Many universities offer specialized undergraduate programs in impact investing, such as the Sustainable Finance and Impact Investing program at NYU or the Sustainable Business and Social Impact program at the University of Michigan. Additionally, many MBA programs now offer courses in social impact investing. Helpful personal attributes for a career in social impact investing include a passion for social justice, strong analytical skills, and an entrepreneurial spirit. You should also have excellent communication and interpersonal skills, as you’ll be working closely with a wide range of stakeholders, including investors, social entrepreneurs, and nonprofit organizations. Job prospects in social impact investing are very promising, with many public and private sector organizations looking to hire impact investing professionals. Notable employers in this field include Acumen, Bridges Fund Management, Blue Haven Initiative, and Omidyar Network. Additionally, many large financial institutions, such as Goldman Sachs, are developing impact investing divisions.

Andrew Ross Sorkin's "Too Big to Fail" is a gripping account of the financial crisis that shook the world economy to its core. With unprecedented access to the key players involved, Sorkin takes us behind the scenes of secret meetings in South Korea, the corridors of Washington, and the corner office at Lehman Brothers. The book is a real-life thriller, revealing never-disclosed details and the decisions made on Wall Street that sowed the seeds of the debacle. This is a must-read for anyone interested in the world of finance, politics, and the fate of the global economy. Recommended for finance enthusiasts, political science students, and anyone interested in understanding the causes and consequences of the 2008 financial crisis. This book provides a moment-by-moment account of how the crisis developed into a global tsunami, with unprecedented access to the key players involved. It sheds light on the decisions made on Wall Street that led to the collapse of Lehman Brothers and the subsequent bailout of the world's biggest banks. Anyone looking to gain insights into the workings of the finance industry and the role of politics in shaping the global economy will find this book a fascinating read.

The Business Blockchain by William Mougayar is a must-read for anyone interested in understanding the potential of blockchain technology. This book goes beyond the basics of what a blockchain is and explores the polymorphic characteristics of this revolutionary technology, which will enable frictionless value exchange and redefine relationships, power, and governance. Mougayar, a blockchain industry insider, draws on his extensive experience to describe a future influenced by blockchain technology as the catalyst for change. The Business Blockchain is an invitation to explore the many facets of blockchain technology and learn how to think about its potential. Recommended for entrepreneurs, investors, technologists, and business-minded individuals, The Business Blockchain provides a comprehensive understanding of the potential of blockchain technology. This book is relevant to a wide range of fields of studies, including computer science, economics, finance, and law. It is also useful for professionals in various industries, such as banking, insurance, healthcare, and supply chain management, who are interested in exploring the transformative potential of blockchain technology. Finally, this book is relevant to anyone interested in understanding the future of trust, value exchange, and governance in a decentralized world.

The global financial crisis of 2008 led to economic turmoil and widespread job loss, but the role of OTC (over-the-counter) derivatives in the crash is not well understood. These complex financial instruments were designed to reduce risk, but they amplified it, resulting in massive losses and a bailout that cost taxpayers trillions of dollars. OTC derivatives are contracts that allow parties to speculate on the future value of assets such as stocks, bonds, or commodities. They are privately negotiated and not traded on public exchanges, which makes them less transparent and harder to regulate. Banks and other financial institutions created increasingly complex and risky derivatives, such as credit default swaps (CDS) that allowed investors to bet on the likelihood of default on mortgages and other debt in the years leading up to the crisis. When the housing bubble burst and homeowners began defaulting on their mortgages, the value of CDS contracts plummeted, causing massive losses for those who held them. This triggered a chain reaction of failures and bailouts as banks tried to shore up their balance sheets and avoid bankruptcy. The government bailouts of banks and other financial institutions during the crisis are estimated to have cost $12.8 trillion globally, including direct and indirect costs such as lost tax revenue and economic output. Leading academics have been critical of the lack of transparency and regulation in the OTC derivatives market. Senator Elizabeth Warren, a law professor and former chair of the Congressional Oversight Panel for TARP, has argued that the complexity and opacity of these instruments makes it difficult to assess risk and protect consumers. Nobel laureate economist Joseph Stiglitz has also warned of the dangers of unregulated financial innovation, calling for stronger oversight and better risk management. Understanding the role of OTC derivatives in the global financial crisis is a lesson in the need for transparency, accountability, and responsible risk management in the world of finance. By exploring this and related topics in more depth, students can gain valuable insights into the workings of the economy and the forces that shape our world.

Are you a natural problem solver with a keen eye for detail? Do you enjoy working in a fast-paced environment where every day is different? If so, a career in Risk Management might be the perfect fit for you! Risk Management is a field that involves identifying, assessing, and mitigating potential risks that could impact an organization's operations, finances, or reputation. This can include everything from natural disasters and cyber attacks to financial fraud and legal liabilities. One of the most appealing aspects of a career in Risk Management is the diversity of the role. Depending on the industry you work in, you could be responsible for anything from developing emergency response plans to conducting security audits and investigating incidents. For example, a Risk Manager in the healthcare industry might focus on ensuring patient safety and compliance with regulatory requirements, while a Risk Manager in the financial sector might be responsible for managing market and credit risk. To succeed in this field, you'll need a combination of analytical skills, communication skills, and business acumen. A degree in business, finance, or a related field is typically required, with many employers preferring candidates with a Master's degree or professional certification. There are many potential areas of specialization within Risk Management, including Enterprise Risk Management, Operational Risk Management, and Cybersecurity Risk Management. In addition, there are many related fields that can lead to a career in Risk Management, such as Insurance, Accounting, and Law. Some popular undergraduate programs and majors for those interested in Risk Management include Business Administration, Finance, Accounting, and Economics. Many universities also offer specialized Risk Management programs that provide in-depth training in the field. When it comes to job prospects, the outlook for Risk Management professionals is strong. According to the Bureau of Labor Statistics, employment in this field is expected to grow faster than average over the next decade. There are many potential employers in both the public and private sectors, including government agencies, financial institutions, healthcare organizations, and consulting firms. Some notable and attractive potential employers in the field of Risk Management include JPMorgan Chase, Deloitte, Aon, and Marsh. These companies offer competitive salaries, comprehensive benefits packages, and opportunities for career advancement. In conclusion, if you're looking for a challenging and rewarding career that allows you to make a real difference in the world, consider a career in Risk Management. With its diverse range of responsibilities, attractive job prospects, and potential for growth and advancement, this field is sure to offer something for everyone.

New research by Takuo Sugaya (Stanford Graduate School of Business) and Mitsuru Igami (Yale Department of Economics) reveals the conditions needed for illegal cartels to survive and the factors that lead to their failure. Using game theory to analyze one of the biggest cartel cases in modern history, the researchers discovered that sustained collusion requires mutually beneficial incentives for all companies involved. Findings have implications for policymakers and regulators in their approval of mergers and investment in innovation.

Did you know that corporate fraud may be more widespread than we think? According to Professor Alexander Dyck and his team, 3% of U.S. companies are caught committing fraud each year under typical surveillance, but the real number may be closer to 10%. Their research, which examines the impact of the Enron scandal on detecting fraud, also estimated that fraud destroys about 1.6% of a company's equity value, representing about $830 billion in current U.S. dollars. This research will inspire you to explore the topic further and think critically about the role of regulation and oversight in corporate governance.

Financial regulators have finally taken an interest in cryptocurrencies due to political pressure, despite law enforcement closely monitoring transactions for years. While crypto may not pose significant micro or macro concerns, regulators are compelled to act. However, their actions may backfire, warns Dr Jon Danielsson.

Do you have a passion for law and a knack for business? Are you interested in helping corporations navigate the legal landscape and protect their interests? Then a career in Corporate Counsel might be the perfect fit for you! As a Corporate Counsel, you will be responsible for providing legal guidance and advice to businesses on a variety of matters, including contracts, compliance, intellectual property, and more. You will work closely with executives and other stakeholders to ensure that the company is operating within the bounds of the law and that its interests are protected. One of the most appealing aspects of this career is the opportunity to work with a wide range of clients and industries. From tech startups to multinational corporations, every business needs legal guidance, and as a Corporate Counsel, you will have the chance to work with some of the biggest and most innovative companies in the world. Some of the typical duties of a Corporate Counsel might include negotiating contracts, drafting legal documents, conducting research on legal issues, and providing advice on regulatory compliance. There are also many potential areas of specialisation within the field, such as employment law, tax law, and intellectual property law. To become a Corporate Counsel, you will typically need a law degree and a license to practice law in your jurisdiction. Many Corporate Counsel also have undergraduate degrees in business or related fields, such as finance or accounting. Popular undergraduate programs and majors for those interested in this career include Business Administration, Economics, and Political Science. In addition to the required education and training, there are certain personal attributes that can be helpful in this career. Strong communication skills, attention to detail, and a strategic mindset are all important qualities for a successful Corporate Counsel. Job prospects for Corporate Counsel are generally quite strong, with many opportunities available in both the public and private sectors. Some notable potential employers include Amazon, Google, and Microsoft, as well as government agencies such as the Securities and Exchange Commission and the Department of Justice. So if you're looking for a challenging and rewarding career that combines your passion for law and business, consider a career in Corporate Counsel!

Learning about Ponzi schemes can help you become a more informed investor and a smarter consumer. Ponzi schemes are scams that offer high returns on investments but actually use new investors’ money to pay earlier investors. Bernie Madoff's Ponzi scheme, the largest in history, conned tens of billions of dollars from investors over multiple decades. Understanding how Ponzi schemes work can help you avoid falling victim to them and make better choices with your money. Learning about Ponzi schemes can also help you develop critical thinking skills as you evaluate investment opportunities and assess their legitimacy. By delving into this topic, you can become more financially savvy and protect yourself from fraudulent schemes.

In his book, Robert Bork offers a unique perspective on antitrust law that challenges conventional wisdom. He argues that these laws, often thought to protect consumers, actually do the opposite by favoring inefficient small businesses. Bork also delves into the societal tensions between liberty and equality that are reflected in antitrust law. This book is a must-read for anyone interested in economics, law, or politics, as it sheds new light on an important and often misunderstood topic. Recommended for students of law, economics, and political science, as well as anyone interested in understanding the impact of antitrust law on consumers and small businesses. The insights offered by Bork's analysis of the societal tensions between liberty and equality are also relevant to those studying sociology and philosophy. This book is particularly relevant to those interested in the intersection of law and economics, and the role of government in regulating business practices. It is also a valuable resource for entrepreneurs and small business owners seeking to understand the impact of antitrust laws on their industry.

Get ready to dive into the evolution of business! From its earliest forms to the financialized capitalism of today, discover how the relationship between capital, firms, and regulators has changed, and how the business world is adapting to meet new challenges like environmental concerns and shifting consumer values.

Former Goldman Sachs executive, Roger Ng, has been sentenced to 10 years in prison for his role in the 1MDB scandal. The scandal involved the looting of billions of dollars from Malaysia's sovereign wealth fund, leading to massive fines for Goldman and rocking Malaysian politics. Ng had denied the charges, but prosecutors argued he played a key role in a corruption scheme that took funds intended for development projects and used them for bribes and personal gain. Learn more about this audacious scheme and its impact on global institutions.