New rules reveal CEO perks

U.S. disclosure rules that took effect last year are prompting companies to reveal (in proxy statements) a wide variety of perks provided to CEOs in fiscal 2007. Examples:

• Kathleen Danenberg, Response Genetics Inc.: $86,622 for clothing expenses (since repaid).
• Micky Arison, Carnival Corp.: $115,884 for courtside Miami Heat basketball tickets (he owns the team).
• Bahram Akradi, LifeTime Fitness Inc.: $31,777, for high-speed wireless Internet access (to tap company systems from home).
• Martha Stewart, $5,000 for her yoga instructor.

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Source: The Wall Street Journal 9 June 2008

Top five political issues in the U.S., 2008

Top five political issues in the U.S. ( May 2008 )

Issues cited as “very important”

• Economy (88%)
• Education (78%)
• Health care (78%)
• Jobs (78%)
• Energy (77%)

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Source: Pew Research Center telephone poll of 1,505 adults, conducted May 21-25; multiple responses allowed. The margin of error is +/- 3 percentage points. Reported in The Wall Street Journal 9 June 2008.

Note: A similar poll last year had Iraq as the top issue.

A devastating year for U.S. financial services

Year-to-date share performance:

• Merrill Lynch: -27%
• Citigroup: -32%
• Washington Mutual: -45%
• Lehman Brothers: -51%
• National City Corp.: -70%
• MBIA: -71%

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Source: WSJ Market Data Group, The Wall Street Journal 9 June 2008

World’s first carbon-neutral garment factory

Is this the start of a rush towards green factories? “MAS Holdings claims to have built the world’s first carbon-neutral garment factory in Sri Lanka,” reports Anthony Townsend at The Institute for the Future. The plant will make underwear for retailer Marks & Spencer in the UK.

While the plant cost 25% more to build than a traditional design (it would have been 15% without some frills due to being a showcase), with rising fuel prices it’s expected to pay for the difference in less than five years.

According to MAS Holdings:

It features the biggest installation of solar panels to date in Sri Lanka, which will provide around 10% of the total electricity required for the plant. The remaining electricity will be mini-hydro, sourced through a green power agreement that MAS pioneered for Sri Lanka earlier this month.

Apparently this is part of Marks & Spencer’s wide-ranging effort to be carbon-neutral by 2012.

Top concerns of CFOs, 2008

The top external concerns of U.S. CFOs:

1. Consumer demand
2. Credit markets & interest rates
3. Housing-market fallout
4. Cost of fuel
5. Cost of nonfuel commodities

Top internal, company-specific concerns:

1. Cost & availability of labor [nonfinance]
2. Ability to forecast results
3. Cost of health care
4. Supply-chain risk
5. Data security

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Source: Duke University/CFO magazine survey of 475 U.S. CFOs, May 2008

Related:
June 2007 (previous post) What CFOs worry about
Most companies fail at forecasting earnings
CFOs predict: The top business risks through 2009