By Mickey Kim “CEOs are routinely bashed for their outsized pay, but companies are under intense pressure from Wall Street to produce steady, predictable gains in earnings per share every calendar quarter (i.e. 13 weeks). Pity the poor CEO who…
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Six questions about the curse of ‘quarterly capitalism’
By Stian Westlake “A lot of people nowadays are worried about “quarterly capitalism”: the idea that big companies are too busy meeting the short-term demands of equity markets to invest in the future.”… [Click HERE to read the full article]
How Hillary Clinton wants to get companies to invest in workers rather than shareholders
By Bryce Covert “On Friday, Democratic presidential candidate Hillary Clinton will give a speech in which, among other things, she will call for greater transparency and oversight of a tactic companies use to inflate their stock prices and reward shareholders,…
Could a Hillary Clinton tax hike on short-term investments curb corporate ‘short-termism’
By Catherine Dunn “Hillary Clinton is set to propose a tax hike on investors that her campaign camp says will encourage companies and investors to think more long-term about opportunities for economic growth. In a speech Friday afternoon at the New York…
Hillary Clinton to call for more transparency in stock buybacks
By Jonathan Allen “U.S. presidential candidate Hillary Clinton will criticize the surge in public companies using profits to buy back stocks in a speech she is due to give on Friday, her campaign said, arguing the practice comes at the…
Hillary Clinton calls out CEOs for short-term thinking. Is she right?
By Mark Trumbull “Back in the heyday of the long bull market in American stocks, one idea reigned supreme in corner offices and corporate boardrooms: CEOs could and should be measured by their ability to maximize “shareholder value.” The chief…
Pushing back on ‘quarterly capitalism’ and incentivizing more investmen
By Jared Bernstein “Interesting news out of the HRC campaign yesterday. They’re considering tweaking the capital gains tax rate schedule to incent more patient holdings and push back on what they call “quarterly capitalism.”… [Click HERE to read the full article]
Forget QE, Wall Street’ new drug is the stock buyback
By Wallace Witkowski “With the Federal Reserve’s quantitative-easing program out of the picture, share buybacks are now the preferred way to boost stock prices in the face of softening earnings. But like QE, it is unclear how long the buyback…
Forget QE: Wall Street’s new drug is the stock buyback
By Ryan Litfin “Share buybacks are now the preferred way to boost stock prices in the face of softening earnings. Quarterly spending on dividends has risen 80% and capital-expenditure budgets have risen 44% since early 2009, whereas spending on buybacks has…
Beyond fairness: Skyrocketing CEO pay is bad for our economy
By Susan Holmberg “Next week marks the 5th anniversary of the Dodd-Frank Wall Street Reform and Protection Act. While the law has made some solid strides toward regulating Wall Street (with the creation of the Consumer Financial Protection Bureau arguably…
