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6 votes

Do banks really have people on the boards of corporations, and why?

What you describe is neither unusual nor pernicious, and occurs more commonly at smaller companies when the company has borrowed significantly from a single bank. Larger companies have direct access ...
dismalscience's user avatar
4 votes

Are corporations essential components of a free market economy?

A classic reference that is somewhat related is Ronald Coase's "The Nature of the Firm". Coase set out to address the following puzzle: since markets are efficient, why do we need to organize into ...
Ubiquitous's user avatar
4 votes
Accepted

Why did the pay of CEOs decrease around the year 2000?

2001 was the time the dot-com bubble burst. CEOs and other highly ranked employees get most of their income from bonus payments, which are often tied to stock prices and revenues, and the like (which ...
AKdemy's user avatar
  • 4,122
2 votes
Accepted

UK: Is there a list published by the government for the amount of tax paid by companies?

For publicly own corporations, you can access their financial statements, where they record the amount of taxes paid (e.g. for Apple here). Notice that where the tax is paid depend on the location of ...
luchonacho's user avatar
  • 8,591
2 votes

Democratic elections of board members by employees?

In Sweden, 2 employees are members of the board in companies over 25 employees (by law). So at least here, not all board members are choosen by the shareholders. One of the reasons many shareholders ...
Linkan's user avatar
  • 131
2 votes
Accepted

In what way specifically are US CEO's able to engage in rent-seeking and exploit corporate governance to increase compensation?

Pre-Sarbanes-Oxley it was common for CEOs to nominate the members of the board of directors of their firms. A sub-committee of the board would determine the CEO's compensation, so a CEO could choose ...
BKay's user avatar
  • 16.3k
1 vote

Why did the pay of CEOs decrease around the year 2000?

It is probably due to the dot-com crash (stock markets fell and so did stock-related compensasion for CEOs). What I find odd about this graph is the trend during 2008 crisis. In fact, searching on ...
Don's user avatar
  • 166
1 vote

is it better a low or high WACC for a company valuation?

WACC is the weighted average cost of capital - the price of money for the firm. All else equal, lower is always better.
jmabs's user avatar
  • 111
1 vote
Accepted

Problem if Shareholder is a Director

There is a potential conflict of interest (not only for a chairman but also for any director or employee who owns shares in the company) arising from the possibility of insider trading. Suppose the ...
Adam Bailey's user avatar
  • 8,529

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