Abstract This report evaluates whether or not the hypothesis at the heart of the "Agency Theory", which states that if an executive is given an ownership stake, it will have a positive effect on stock performance, works as expected. Furthermore, this paper tracks the increasing use of the "Agency Theory" in executive compensation and enumerates and evaluates the effects that the increasing use of the "Agency Theory" has had on American business and on stock performance. The paper also evaluates the effect of what has been described as "over the top" use of increasingly generous, stock-dependent, executive compensation packages, both on stock performance and on other business evaluative factors. The effect of the scandals involving executive compensation/stock performance on the social/commercial fabric of the U.S. is discussed briefly, as well.
Outline
The "Agency Theory", Executive Compensation and Stock Performance
The Effect of Pay on Executive Motivation
The Effect of FASB Rules on Compensation/Stock Performance
From the Paper "In the wake of the Enron, ImClone and WorldCom financial scandals, the increasing use of stock options as part of executive compensation packages came under public scrutiny. Because of the lax was in which FASB guidelines are written, it was possible, lacking adequate corporate governance, for CEOs to use their stock options to increase their personal wealth while diminishing the strength of the corporation and decreasing"or completely negating"benefits for shareholders. In addition to the problematical FASB rules, also operative was a management theory, the Agency Theory, formulated by academicians and economists in the last century. The theory held that giving executives a financial stake in the financial health of the company would increase their motivation to run those companies for maximum profits for shareholders; in short, this form of executive compensation was thought to be able to produce superior stock performance. The findings of several researchers even before the scandals of the past few years, however, revealed that results often departed wildly from what the theory predicted."
Abstract This paper is an historical study of The French Revolution. It discusses the situation in France before the outbreak of the revolution. It details the execution of King Louis XVI and his mistakes that led to it. It studies the failed political system at the time as one of the causes of the revolution. Finally, it also gives a detailed examination of Mary Antoinette's role at the time and why she was executed.
From the Paper "The prevailing theory of Divine right of Kings was the philosophy behind monarchy. Earlier, Louis XIV had used the absolute power of monarchy to the extreme. King was God's representative on earth, and he alone could possess and exercise earthly power. He was always right because he represented and was the incarnation, so to say, of his people.
By the eve of the French Revolution, however, few intellectuals and political leaders accepted idea of the King's divine right. The situation was compounded by Louis XVI's weakness as an absolute monarch, though many supported monarchy in the interest of maintaining law and order and continuation of the national tradition. Louis XVI saw himself as the best judge of the people's good and he tried to do right by them, at least in his own opinion.(<http://www.angelfire.com/ca6/ French revolution 89/bar11.gif>) But to the majority of the people, the King was supposed to be like a father, kind and benevolent. 97% of the population, who were peasants, were fierce monarchists."
Tags:execution, Louis, XVI, Mary, Antoinette, French, Revolution, France
Abstract This paper examines how in a changing health care environment the need for a change in leadership is evident and how in order to meet the demands of this change, health care agencies have moved away from traditional non-practitioner management positions and toward clinically experienced administrators whose role falls heavily on Master's level nursing professionals. It shows how E.A. Hemman's article "Leadership Profiles of Senior Nurse Executives" puts forward a stratified systems theory describing three hierarchical functional domains: strategic, organizational and production in order to create a suitable nursing/managerial profile. Each of the three levels of management are further analyzed by four general categories decision making, information giving-seeking, influencing people and building relationships. The paper also critiques the article pointing out facts such as implications of financial and economic strain has and will continue to put on the health care executive.
From the Paper "Critiquing the comments of Hemman only one omission seems evident, and it may be addressed in the research and just not mentioned in the study write up. The omission of great import is that it is acknowledged early on that many of the changes associated with the change in health care delivery are associated with the economic and financial differences in the whole industry as compared to prior delivery system standards. For this reason I believe it may be important to further discuss the implications that financial and economic strain have and will continue to put on the health care executive."
Tags: health, care, environment, experienced, administrators, professionals, executive
Abstract This is a 5-page paper discussing the various elements of budget execution. It states that budget accounting system is an important base for the execution of the government budget agency.
Abstract This paper addresses the issue of whether the increasing rate of executive compensation is ethical in light of the decrease in jobs and employee wages. The unfairness of executive compensation packages is looked at, as well as steps to make compensation packages more fair.
From the Paper "The rising rate of executive salaries increases is unethical in light of problems facing American business including the threat of global competition ..."
Tags:Executive Salaries, ethical, overpaid, board of directors, compensation committee, government intervention, caps, sharing the wealth, stock options.
Abstract This paper explores how medications can affect executive functioning. The paper begins by defining executive functioning as a frontal lobe function. Next the paper looks at what medications can affect this functioning, such as psychotropic and others. The paper also investigates the mechanisms of the medications' action and other side effects.
From the Paper "According to Goldberg, the neurobiological term executive functions refers to a complex set of cognitive skills associated with the frontal lobes of the brain. These skills are related in large part to..."
Abstract This paper compares and contrasts the executive branch of government at the federal and state level -- i.e. the presidency and the governorship. The paper studies how both use the budget as a tool. The paper investigates the principles set forth in the U.S. Constitution regarding the Executive branch, specifically the powers of the U.S. President, such as the role of Commander in Chief. The paper also looks at the broad scope of activity of governors at the state level.
Tags: governor, president, executive branch, states, federal government
Abstract This paper explains the executive compensation policy of Rite Aid Corporation, a publicly traded company. The author contrasts the company's executive compensation policy with that of its chief competitor. The paper suggest several ways to enhance a company's policy to minimize agency conflict and maximize shareholder wealth.
From the Paper "Rite Aid Corporation is a drug store chain. The stated objectives of its Compensation Committee are to support the achievement of desired company performance, to provide compensation and benefits that will attract and retain superior talent and reward performance and to fix a portion of executive compensation to the outcome of the Company's performance. The executive compensation program includes a base salary performance bonuses and long-term incentives in the form of stock options. Stock Appreciation Rights known as SARs stock-based awards and restricted stock awards ..."
Tags:executive compensation programs, Longs Drug Stores, Rite Aid Corporation, bonus, salary, short term incentives, long term incentives, compensation committee, variable compensation
Abstract This paper contends that since 1920, the Executive Office of the President has expanded in size, complexity and power because of economic depression, global war, the threat of communism and legislative branch timidity. It explains that beginning with Republican administrations in the nineteen-twenties, twentieth century presidents of both major parties have asserted executive domination over the federal government and undermined Constitutional checks and balances to such an extent that the legislative and judicial branches of government have been marginalized into insignificance.
From the Paper "Since 1920, the Executive Office of the President has expanded in size, complexity, and power because of economic depression, global war, the threat of communism, and legislative branch timidity. Beginning with Republican administrations in the nineteen-twenties, twentieth century presidents of both major parties have asserted executive domination over the federal government and undermined Constitutional checks and balances to such an extent that the legislative and judicial branches of government have been marginalized into insignificance. Much of this expansion of executive power has been due to the pressure of domestic and foreign events such as the Great Depression, World War II, and the Cold War, which convinced twentieth-century presidents that they had to use the ..."
Abstract A critical analysis of four books on the development of Executive Skills. The books discussed are as follows: 'The Seven Habits of Highly Effective People' by Stephen R. Covey 'Emotional Intelligence' by Daniel Goleman 'The Leadership Experience' by Daft Thompson and 'The Quest for Personal Power' by Phil Nuernberger.
Abstract This paper examines the congressional-executive relationship and distribution of power in the area of foreign policy. It discusses the George W. Bush administration as a case study to demonstrate the expansion of executive power at the expense of Congress. The paper begins with an overview of the relationship between Congress and the President in the realm of foreign policy. It then examines the presidency of George W. Bush and describes the role the Bush administration has played in expanding its own powers, as well as Congress' role in allowing the administration to do so.
Table of Contents:
The Two Presidencies Thesis
The Modern Era of the Strong Presidency
Explaining the Congressional-Executive Distribution of Power and the Decline of Congressional Power--Delegating Authority in International Affairs
Rise of Assertiveness by Congress in Foreign Affairs
President George W. Bush: A Case Study in the Expansion of Executive Power in Foreign Policy
The Importance of September 11 to the Bush Presidency and the Increase in Executive Power
An Increase in Executive Power through a Reduced Congressional Role and Reluctance of the Executive Branch to Work with Congress
The Iraq War and the War Powers Act Resolution-Congress Permitting an Increase in Executive Powers
Expansion of Presidential Powers by Ignoring and Bypassing Congress
Expansion in the President's Role as Commander in Chief
Spending Powers in the War Against Terror and Iraq
From the Paper "For Wildavsky, the key to presidential power in foreign policy does not lie in constitutional foundations, but in changes that had taken place in the world since 1945. He cites the growth in the number of Third World nations, the existence of nuclear weapons and the threat of holocaust, and the cold war as reasons why foreign policy tends to drive out domestic concerns. Reasons for this are the speed of international events and their irreversibility. The presidential advantage in foreign affairs is derived from institutional and informational advantages, as the president has greater access to information that other actors and has greater control of expertise, as well as at times widespread public consensus on foreign policy that reflected the Cold War threat. The interconnectedness of foreign policy necessitates that presidents actively engage in all facets of international affairs. Unlike domestic policy, a single foreign policy failure could lead to an array of catastrophic disasters. Wildavsky also suggests that policy preferences are more varied in the domestic arena and therefore more likely to lead to conflict. Moreover, he argues that presidents are successful due to the weakness of other rivals. Rivals for power in foreign affairs not only have fewer resources at their disposal but are "weak, divided, or believe that they should not control foreign policy." The list of potential rivals he includes are: the public, special interest groups, the military, the military-industrial complex, the State Department, and of special interest here, Congress."
This paper examines the controversial and much debated issue of executing mentally ill individuals who were sentenced to death in capital punishment trials.
Abstract The writer of this paper presents a detailed examination regarding the execution of mentally ill criminals. The writer explores case law, as well as moral issues when it comes to medicating the mentally ill with anti-psychotics so they are well enough to be executed. This paper analyzes the verdicts in several death sentence trials, including the cases of Ford vs. Wainwright and Singleton vs. Norris. In 1986, the U.S. Supreme Court decided that the execution of the mentally incompetent violates the 8th Amendment prohibition against cruel and unusual punishment. A prisoner cannot be executed unless sufficiently competent to understand the nature and reasons for his punishment. This paper also details the recent 6-to-5 decision and the first ruling of its kind, in Singleton vs. Norris, that a mentally ill prisoner may be involuntarily medicated with anti-psychotic drugs to restore his competency for execution. The author examines the issue of executing the mentally ill after forcing them to take medication which has been upheld in several U.S. courts . The logic behind such decisions is flawed for several reasons, which are detailed in this paper.
Table of Contents:
Introduction
Getting Worse Before it Gets Better
Works Cited
From the Paper "The execution of the mentally ill after forcing them to take medication has been upheld in several US courts. The logic behind such decisions is flawed for several reasons. The mentally ill who are so disordered that they cannot function are not forced to stand trial, nor are they required to answer for their crimes. They are allowed an insanity defense that allows them to seek treatment and eventually apply to be released back to society. It does not make sense, that a mentally ill person can be force fed medications so that they become sane enough to be executed, if defendants cannot be force fed medications for the purpose of understanding their crime and standing trial. The health care industry is built on not harming others."
Abstract This paper analyzes and examines the multitude of issues related to the executive branch of government at the federal level. Part II examines the definition and applicability of executive privilege as seen by both the executive and legislative branches. In Part III, past and present controversial use of executive privilege in cases such as Enron and Watergate are outlined. Lastly, this paper concludes with recommendations for improving the use of executive privilege.
From the Paper "After Vietnam and Watergate, the issue of executive privilege had not registered much of a blip on the radar. However, the recent Enron scandal has allowed Congress to question the validity of the executive privilege argument. In January 2002, Comptroller General David Walker, head of the non-partisan Government Accounting Office, announced that he would sue Vice President Dick Cheney in order to obtain information about the National Energy Policy Development Group that Cheney chaired last year. Walter contended that the unprecedented lawsuit was made necessary by Cheney's refusal to cooperate voluntarily."
Abstract This paper discusses executive compensation schemes within organizations. It specifically analyzes whether chief executive officer (CEO) stock options and other executive compensation align with Home Depot or Lowes' long-term performance with shareholder interests. The paper discusses the positive and negative aspects of executive compensation schemes.
Table of Contents:
Compensation and Executive Compensation
Does CEO Stock Options and Other Compensation Align the Company's Long Term Performance with Shareholder Interests?
The Positive Side
The Negative Side
Home Depot and Lowes
Home Depot
Lowes
The ESOP Woes
Appendix
From the Paper "The avenue that began as a small way has come to occupy the biggest legal money making methodology since greenhorns in dotcom companies were offered stock options during times when the going was good. Things cannot get worse than this. Subsequently, not to be left behind, auditors also joined the party. Because of this, it is found that companies that have never shown profits are quoted at fantastic prices. The bane of all this has been the stock option plan and the sooner it is abolished, the better. The CEO should be paid bonuses solely on the net profits he shows as a result of his performance. This is because the CEO is a paid professional and never an investor or a speculator. Any conflicts of interests must not be present. In case he is desirous of owning company stock then they must purchase at market prices just like any ordinary shareholder does with his personal finances. If this is not done, nothing can stop the CEOs in their pursuit of looting the corporation, albeit legally through ESOPs. (Executive Compensation)"
