The CEO Pay Ratio mandated by Dodd-Frank is finally here. The rule sounds simple enough: Companies must disclose the ratio of their CEO’s pay to that of their median worker. Interesting information, perhaps, but the SEC supposedly exists for a more lofty purpose than mandating nice-to-know data. It must, by law, act in the interests of investors. In fact, the Administrative Procedures Act requires the SEC to “base . . . decisions on the best reasonably obtainable scientific, technical, economic, and other information concerning the need for, and consequences of, the intended regulation.” Read More
By Mark Spool - Friend of CEO Trust and Executive Coach at Management Development Solutions The PA Chapter's CEO Roundtable Breakfast on June 16th was well attended and had a great discussion among its participants (CEOs and C-Suite executives of different industries). We started the discussion on how corporate culture impacts profitability, then moved into how strategy plays a key role in creating competitive advantage. Real examples helped explain key points made, and the level of openness promoted a robust discussion. The setting was great – a private room at the prestigious Old York Road Country Club in the Philadelphia suburbs.
Hey you out there: Just kidding
Let’s say that you hire a captain for your ship and for, say, tax reasons, decide that instead of running things from the bridge he should run things from the plank. You warn him that if anything goes wrong, he goes into the drink. But rough weather comes along, and you decide you still need him, so you don’t push him over the edge. At this point, you’ve hurt your credibility and pissed off the sharks. Read More
By Challenger, Gray & Christmas, Inc.
Falling oil prices contributed to a 68 percent surge in job cuts last month, as US-based employers announced workforce reductions totaling 61,582 in April, up from 36,594 in March, according to the latest report on monthly layoffs released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
The April total was 53 percent higher than the same month a year ago, when 40,298 planned job cuts were recorded. It represents the highest monthly total since May 2012 (61,887) and the highest April total since 2009 (132,590). Year to date, employers have announced 201,796 planned job cuts, which marks a 25 percent increase from the 161,639 layoffs tracked in the first four months of 2014. This is the largest four-month total since 2010. Driving the increased pace of job cutting in April and for the year is the dramatic decline in oil prices, which is forcing producers and suppliers to cut production. Of the 61,582 job cut announced last month, 20,675 or 34 percent were directly attributed to oil prices. For the year, oil prices were blamed for 68,285 job cuts, or about 34 percent of the 201,796 planned layoffs announced between January 1 and April 30. “Schlumberger, Baker Hughes and Halliburton have all announced multiple rounds of job cuts in recent months, including April. The largest job cut of the month came from Schlumberger, which announced that it will shed 11,000 workers, in addition to the 9,000 laid off in January,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. “The jobs that are most vulnerable are those in the field – engineers, oil rig operators, drill operators, refinery operators, etc. Managers and executives in the corporate offices are more secure, but the drop in oil prices is leading to increased merger activity, which could put more executives at risk of job loss,” said Challenger. Read full report here.
by Stephanie Grayson Even with the luxury properties "going, going, GONE!", the excitement of last week's exclusive event still lingers, as do the connections made during the networking portion of the CEO Trust/Concierge Auctions special event that took place on May 14, 2015 in New York City. With a stunning birds-eye panoramic view from 46 floors up as the backdrop, CEO Trust colleagues enjoyed an exclusive cocktail reception and luxury auction event at Trump Soho's SoHi room in Manhattan that was a blend of the traditional and the modern. Concierge Auctions' auction event combined live, in-person attendee bids hosted by an expert, old-school style auctioneer along with modern telecommunications staffed and equipped to accept offsite bids from prospective buyers who could call in with their offers for the luxury properties offered. Auctioned properties included: a 46-acre oceanfront resort on Barbuda's western coast, a 13,600 s.f. oceanfront estate in coveted Princess Isle on Grand Bahama Island, and a breathtaking lakefront retreat in renowned Reynolds Plantation, Georgia. The conversation and networking before and after the auction event was lively and animated, in between bites of elegant hors d'oeuvres, and wine and cocktails. One of the favorites from the bar was a unique concoction called, appropriately enough, "The Gavel". Although with the final swing of the actual auctioneer gavel, the auction came to an end, the evening's reception continued as the reception-goers enjoyed the view and each other. Attendees agreed that the connections and memories made at the CEO Trust/Concierge Auctions event that night at Trump Soho will surely continue.
We had a terrific gathering at the Union League of NYC on April 20th learning about lessons from the recent conflicts in Iraq and Afghanistan, how to capitalize on the very unique talent of our veterans, and how to better support those who were wounded with jobs and housing. The CEO Trust's own, John Connolly led the discussion, followed by Major General (retired) Tim McHale, CEO of Homes for Our Troops, and Luke Murphy, a wounded combat veteran. It was both inspirational and helpful as CEOs look for ways to bring vets into the workforce, particularly those with disabilities.
Feedback has been overwhelmingly positive, with attendees commenting:
"Excellent event to gain a better awareness of the opportunities and sensitivities required to successfully onboard a wounded vet into our organizations. We often forget the sacrifices that these young men and women make for our country. It is nice to be reminded and to understand what is, and can be, done to support them as they return to civilian life." "Thank you... I was privileged to learn from Tim in more detail about Homes for our Troops and from Luke his personal story and extraordinary accomplishments. Your stories and work are profound; thank you again for your ongoing service to and example for veterans with disabilities." "This was a wonderful evening and event. Very well organized, excellent speakers and interesting attendees. It was also an opportunity to shed even more light on a wonderful cause." "Touched, moved, and inspired."
"Excellent event to gain a better awareness of the opportunities and sensitivities required to successfully onboard a wounded vet into our organizations. We often forget the sacrifices that these young men and women make for our country. It is nice to be reminded and to understand what is, and can be, done to support them as they return to civilian life."
"Thank you... I was privileged to learn from Tim in more detail about Homes for our Troops and from Luke his personal story and extraordinary accomplishments. Your stories and work are profound; thank you again for your ongoing service to and example for veterans with disabilities."
"This was a wonderful evening and event. Very well organized, excellent speakers and interesting attendees. It was also an opportunity to shed even more light on a wonderful cause."
"Touched, moved, and inspired."
Thanks to Tribridge for hosting at the historic Union League.
- CEO Trustee Event Chair
New friendships were made, and a few brain cells lost during the Brewery Tour, Talk & Tasting at Two Roads Brewing Co. in Stratford, CT on April 29th.
Led by Two Roads Founder, Brad Hittle the CEO trustees and their guests got a "deep dive" into the business of beer and the challenges of building both a custom state-of-the-art facility and a unique beverage brand from concept to production in well under a year.
Cheers to all who attended with special Thanks to Cathy Curley who ensured that everyone was well fed and the beer kept flowing.
Thanks to all the trustees and guests who attended the Leadership Event with the Philadelphia Phillies on April 15th at Citizens Bank Park. It was a very enjoyable morning.
The group received a very informative talk by Phil Clemens, retired CEO and current-Chairman of Clemens Family Corporation about the long and interesting sponsorship by CFC/Hatfield Quality Meats. Phil covered a wide range of topics ranging from measuring ROI on a professional sports sponsorship to his personal philosophies on leadership and the unique aspects of running a 120-year-old privately held, family-managed company. Phil's favorite part of leadership: being a "coach".
We also heard from Mike Ondo, the Phillies Director of Pro Scouting. Mike had plenty of interesting insights on the running of a professional baseball team's scouting division. Mike also spoke about the recent history of the Phillies and a little on their approach to returning to winning ways.
A good time was had by all!
Eileen is well prepared for retirement – but not quite yet. The general counsel for a public company had planned for retirement at age 65. New post-vesting holding period rules are colliding with the prospect of using her performance shares for an unplanned retirement. To learn more about post-vesting holding periods and how to consider and address their impact on your retirement timeline, read the full article by SFG Wealth Planning Services here.
The percentage of job seekers relocating for new positions in the last half of 2014 rose to its highest level in five years, which should be good news to the growing number of employers that may find their local talent pool getting shallower as unemployment rates continue to fall around the country.
An average of 15 percent of job-seeking managers and executives moved for new positions over the last two quarters of 2014. That was up from an average of 11.4 percent in the first two quarters of the year. In 2013, the relocation rate among job seekers averaged 13 percent.
The latest relocation rate, which is based on Challenger’s quarterly survey of approximately 1,000 job seekers, is the highest it has been since the first half of 2009, when an average of 16.3 percent of job seekers moved in the immediate wake of the recession.
“Ongoing improvements in the employment and housing markets are undoubtedly making relocation a more palatable option for managers and executives in transition,” said John A. Challenger, chief executive officer.
Relocation activity plunged after the first half of 2009 as home values continued to decline, which made it very difficult to sell an existing home without taking a significant loss.
“Relocation is rarely the most desirable option for job seekers. There is a lot of cost and risk involved. The collapse in the housing market, which was a primary factor behind the recession, made relocation even more unattractive, as many job seekers were stuck in homes with market values well below what was owed on the mortgage.
At the same time, employers were unwilling to help pay for any relocation costs, much less cover the likely loss in home value, due to their own recession-related cost-cutting initiatives. Starting in 2013, we saw a rebound in home buying and home prices. That trend continued in 2014, leading to the upturn in relocation among job seekers,” said Challenger.
Read full report here.
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