Executive behavioral cages: Is escape possible?

Pressure upon a child to conform to the exoectations of others leads him to deny parts of his own personality. Upon reaching adulthood, he has perfected behaviors to hide and compensate for these parts; it is as though he has built an invisible but escape-proof behavioral cage around himself. Others cannot get in to see the real person, and the real person cannot get out. The actions of an executive living in one of these cages can be costly; the author discusses a case in which a caged executive cost his plant .$3 million yearly in unrealized efficiencies. Analysis is made in terms of a model useful for understanding caged executives; an approach to freeing oneself is also suggested.     

Motivating managers with money: How to assess and reward performance

Does money motivate managers? Many current compensation programs are merely annual bonuses or profit-sharing plans. Seldom is an executive rewarded for actual improvement in performance. The author looks at the situation from two angles: salary administration and incentive bonus administration. First, there must be equality between salary earned and salary received. Second, a company has to establish criteria for evaluating an employee's earned income. The author suggests that an employee's evaluation be based on his observable daily performance, rather than on vague concepts such as his willingness to cooperate or his loyalty to the firm. When a company does award bonuses it should give them for performance that exceeds the daily criteria, and it should pay the bonus immediately.     

Professional Development for Cross-Border Managers: New Growth Opportunities for Executive Education

The need of business enterprises for professionals trained for the challenges of cross-border assignments will increase exponentially through the decade. Business schools will be hard pressed to deliver programs with the scope, scale, and effectiveness necessary to address the unique competencies required for cross-cultural understanding and communication, and the complexity of global business operations. This article reviews the existing literature in order to identify the competencies that are needed by global managers and the training approaches that can successfully build those competencies. A template of 10 criteria that should be addressed by training programs for cross-border professionals is proposed and applied to a sample of business schools that currently offer executive programs. Although there are good examples of programs that meet one or more of the 10 criteria, most business schools will be required to expand and to innovate their programs in order to meet the projected demand for training.     

The executive leadership imperative: A new perspective on how companies and executives can accelerate the development of women leaders

In light of today's leadership shortage, companies face challenges in trying to identify and develop new leaders to fill the key roles left vacant by baby-boomer retirements. This feat can only be accomplished by tapping all sources of future leadership talent—especially women, who are currently underrepresented at the executive level. The development of future leaders in most companies is handicapped by the fact that promotional decisions to the C-Suite level are based on a set of unstated criteria for advancement. The lack of clarity regarding the factors used to determine who does and who doesn’t progress to the executive level presents special challenges for aspiring women executives. Effectively addressing these obstacles requires a new mindset toward talent development within organizations. We recommend actions on two fronts: (1) specific practices that companies can make part of their succession planning and career development processes in the interest of creating a level playing field for executive advancement, and (2) actions that women can proactively employ to take the initiative in their own development as leaders.     

The Role of Executive Stock Options in On‐Market Share Buybacks*

The increasing use of on‐market buyback programs in Australia may not be fully explained by the typical motivations of information signaling and free cash flows offered by previous researchers. For some firms at least, management may believe the shares are overvalued. It is in this context that we examine whether managers of firms with high levels of executive stock options have an incentive to initiate buyback programs. It has been argued that managers may be motivated to undertake on‐market buyback programs in order to neutralize the dilution of earnings per share caused by their stock options, rather than for signaling purposes. Our findings are consistent with this argument because we find that the higher the proportion of executive stock options outstanding the more likely it is for firms to undertake larger on‐market buyback programs. Overall our results indicate that the existence of executive stock options influences managers' decision to implement on‐market buyback programs but that it is not the only factor that managers take into consideration.     

The Ethics of Managerial Compensation: The Case of Executive Stock Options

This paper examines the ethics of contemporary managerial compensation in the context of executive stock options. Economic considerations would dictate that executive stock options should be adjusted to eliminate the effect of overall stock market movements which are beyond the control of the executive. However, in practice, most executive stock options are not adjusted to control for these outside factors. Agency considerations are the most likely culprit. Adjusting for the influence of outside factors, such as a generally rising stock market, from executive stock options sets a higher bar for managers to reach. Furthermore, traditional accounting standards permitted firms that did not adjust options to avoid reporting options as expenses. This presents CEOs and boards of directors with a major ethical dilemma. On the one hand, their duty to their shareholders and stakeholders dictates that executive stock options should be adjusted to eliminate outside noise from unrelated movements in the overall stock market. However, financial statements are presented in the language of accounting. If the overwhelming majority of the users of a language define a particular item in one way, then to deviate from the norm implies that the recipient of such a deviant statement may not properly interpret the statement. Likewise, if the standard practice is for firms to use unadjusted options and thus under-report expenses, to deviate from this industry norm risks that users of financial statements would not properly interpret the financial statements, with perhaps negative consequences for the shareholders. In short, if “everyone else does it,” then it could be wrong for an individual firm to deviate from the norm as that would harm the shareholders. James J. Angel is an Associate Professor of Finance at the McDonough School of Business at Georgetown University. He is a financial expert whose research focuses on the operation of financial markets in the United States and other countries. He currently serves on the OTCBB Advisory Board, and he has served as Chair of the Nasdaq Economic Advisory Council. He earned his undergraduate degree from the California Institute of Technology, his MBA from the Harvard Business School, and he earned his Ph.D. in Finance from the University of California at Berkeley. Douglas M. McCabe is a Professor of Management at the McDonough School of Business at Georgetown University. He serves on the Editorial Boards of 20 scholarly journals, including Research on Ethical Issues in Organizations, JAI Press as well as the Employee Responsibilities and Rights Journal. Considered by the media to be an expert in his field, he has appeared more than 200 times on international (CNN), national (ABC, NBC, and CBS), and local television and radio. He holds a Ph.D. from Cornell University and is a member of Phi Beta Kappa.     

The Global Compact Selected Experiences and Reflections

In this paper, the Executive Head of the Global Compact shares some of his own reflections on the evolution of the Global Compact initiative – United Nations Secretary-General Kofi Annan’s voluntary corporate citizenship initiative in the area of human rights, labor, the environment and anti-corruption. Two main themes are addressed. The first considers the Global Compact’s institutional context, examining how such an initiative is even possible in the historically hierarchical and traditionally business-unfriendly UN. The second concerns the voluntary nature of the initiative and how it interacts with regulatory approaches. It explains what the Global Compact has to offer as a voluntary initiative, as well as how it can make a unique and complementary contribution to regulation-backed initiatives. The paper concludes with a brief consideration of what the future holds for the Global Compact. Georg Kell Georg Kell began his career at the United Nations in 1987–1990: UN Conference on Trade and Development (UNCTAD), Geneva. 1990: he joined the New York office of UNCTAD; 1993–1997: head of the office. 1997: senior officer at the executive office of the Secretary-General responsible for fostering the cooperation with the private sector. Since 2000, executive head, Global Compact, United Nations, New York.     

创业和职业化，谁将赢在中国?

没人去打江山,要老板何用? 陈智慧//4月份的时候,当时还是盛大总裁的唐骏,在接受媒体采访时有一句话很打动我,他说"我唐骏永远都不会选择创业,我会一直选择职业化的道路"--在当前创业气氛很浓时这么说,的确很吸引我.所以有了今天的话题.     

The Effects of the Dark Triad on Unethical Behavior

In the wake of a series of corporate scandals, there has been a growing call for authentic leadership in order to ensure ethical conduct in contemporary organizations. Authentic leadership, however, depends upon the ability to draw a distinction between the authentic and inauthentic leader. This paper uses Deleuze’s discussion of Platonism as a point of departure for critically scrutinizing the problem of authenticating the leader—drawing a distinction between authentic and inauthentic leaders. This will be done through a reading of Bill George’s book Authentic Leadership. Informed by Deleuze’s inverted Platonism, the paper challenges the practice by which authentic leaders are distinguished from inauthentic leaders. In conclusion, the paper suggests that an adequate concept of authentic leadership should consider how ethics can occur when the authentic leader is able to critically reflect his or her own value-commitments.     

Ethical choices in the design and administration of executive compensation programs

Within the past few years, executives have come under increased scrutiny and criticism for the levels of compensation they receive. At the same time, corporate practices surrounding the design and review of executive compensation programs have received increased attention. While some recent executive misconduct has involved violations of the law, many academics and other corporate critics view the issues involving executive compensation more from an ethical than a legal perspective. Several dimensions of the executive compensation decision process offer significant opportunities for ethical choices. This article identifies the major components of executive compensation and highlights decision points in the design and administration of each component where ethical issues may arise. Proposals to reduce the potential for ethical misconduct are also offered.     

Marketing strategy and the hunt for era V

ABSTRACT

This paper is a response to a recent special issue of the Journal of Marketing Management in which Shelby Hunt celebrates the achievements of 40 years of marketing strategy. In noting the passing of the ‘old guard’, Hunt calls on a new generation of scholars to meet the challenges confronting marketing and to develop new theories and frameworks to advance Marketing Strategy into Era V. We take for our inspiration Hunt’s own words, specifically his reference to the ‘promising’ and ‘problematic’ that he uses to characterise the current and latent state of marketing strategy. To build our vision and map out our agenda we offer an alternative reading of this discipline through the idea of Marketing Strategy as Discourse (MSAD). Within the paper, we outline the role that discourse can perform as a resource to reconfigure our appreciation of marketing strategy.     

Do university executive development programs pay off?

University executive development programs are solidly entrenched, but questions have been raised concerning their cost-and benefits. A study of large U.S. business corporations reveals that most lack established policies concerning selection of the participant and the choice of a program. In addition, measurement of individual and group change related to the program is neglected. Nevertheless, companies report favorably on participants' job performance. The participants themselves feel they have gained status, but sometimes are ready to implement changes for which the organization is not prepared. University programs do not seem to be in any immediate trouble, but need to develop and maintain closer relations with participating organizations and to become more deeply involved in evaluation.     

How companies use University-based executive development programs

University-based executive development programs are popular with companies and business schools alike. But very little research has been done to evaluate these programs. This University of Michigan study came up with some surprising results, with major implications for both business and academe.     

混合所有制企业的民营化程度如何影响高管薪酬-业绩敏感性？

在中国深化改革、推进转型的特殊背景下，探索出一条适合中国混合所有制企业实际情况的高管薪酬制度改革路径是现阶段中国国有企业改革亟待解决的问题之一。高管的薪酬-业绩敏感性是判断薪酬激励契约有效性的主要指标，基于此，文章首先构建一个委托-代理框架下的寡头市场模型，从理论上分析混合所有制企业的民营化程度与高管薪酬-业绩敏感性之间的关系；其次选择2007—2016年沪深两市A股经过民营化的国有控股上市公司数据进行实证检验。结果发现：总体上，提高混合所有制企业的民营化程度会显著增强高管薪酬-业绩敏感性；进一步分析发现，混合所有制企业中非国有股比例小于67%时，提高民营化程度会降低高管的薪酬-业绩敏感性；非国有股比例介于67%~75%之间时，提高民营化程度对高管薪酬-业绩敏感性没有显著影响；非国有股比例大于75%时，提高民营化程度会提升高管的薪酬-业绩敏感性。     

Teaching Competitive Intelligence Skills to North American and Overseas Audiences: A World of Difference in Pedagogical Effectiveness

This article contrasts teaching methodologies and pedagogical effectiveness in executive development programs delivered in North America and three diverse regions of the world. Based on the authors' collective teaching experience exceeding 40 years encompassing over 24 countries, and augmented by a review of the literature, a theoretical model is posited addressing 10 criteria deemed discerning when executive development programs are delivered in diverse locales around the globe, with the aim of improving the effectiveness of teaching and learning.     

The coming era of the financial executive: A broadened,less specialized role

Because corporate financing is becoming more complex, the role of financial executives is increasing in both importance and complexity. In addition to his traditional function of procuring funds from external sources, the new tasks of the financial executive will include generating funds from internal sources. His job will have to be broadened to include actively managing all of the corporations's major balance sheet items, and the author presents seven key questions a financial executive must consider in facing these new tasks. Thus, his role will be less specialized; it will require a knowledge of and experience with general management. The financial executive will increasingly become directly involved in the strategic issues handled by top management.     

Managing advertising investments in marketing channels

This paper investigates how should manufacturers optimally allocate resources to retailer-initiated (retailer) advertising through cooperative advertising programs and own (manufacturer) advertising in a bilateral monopoly. Retailer advertising stimulates immediate sales but may also harm long-term (post-advertising) demand, whereas manufacturer advertising aims at building brand equity and stimulates both immediate and long-term sales. A game-theoretic model in which a manufacturer and a retailer set pricing and advertising decisions over a two-period planning horizon is developed to account for the differences between manufacturer and retailer advertising. We characterize equilibrium solutions for four advertising scenarios for the manufacturer, ranging from no investment in any advertising activity to undertaking own advertising and supporting retailer advertising simultaneously. Comparing the two players’ equilibrium strategies and profits across these scenarios, we find that manufacturers should avoid offering exclusively cooperative advertising programs to retailers. When retailer advertising positively influences long-term sales, manufacturers should offer cooperative advertising supports to retailers in addition to undertaking their own advertising. When retailer advertising negatively affects long-term sales, manufacturers can still undertake own advertising and offer cooperative advertising under certain conditions. However, if these conditions are not met, focusing exclusively on own advertising is their best advertising strategy. Retailers also prefer scenarios in which manufacturers advertise, but may choose not to participate in manufacturers’ cooperative advertising programs. This leads to suboptimal outcomes if cooperative advertising programs are not enhanced by additional incentives (e.g., side payments or other services).     

Why Stakeholder And Stockholder Theories Are Not Necessarily Contradictory: A Knightian Insight

The normative foundations of the investor centered model of corporate governance, represented in mainstream economics by the nexus-of-contracts view of the firm, have come under attack, mainly by proponents of normative stakeholder theory. We argue that the nexusof- contracts view is static and limited due to its assumption of price-output certainty. We attempt a synthesis of the nexus-of-contracts and the Knightian views, which provides novel insights into the normative adequacy of the investor-centered firm. Implications for scholarship and management practice follow from our discussion. S. Ramakrishna (Rama) Velamuri is Assistant Professor at IESE Business School, where he teaches Entrepreneurship and Negotiation in the MBA and executive education programs. He is also a visiting professor at the Indian School of Business in India, the University of Saarland in Germany, and the University of Piura in Peru. His research has been published in both academic and practitioner outlets: Journal of Business Venturing, Business Ethics Quarterly, Journal of Entrepreneurial Finance and Business Ventures (forthcoming), Universia Business Review, Financial Times Mastering Management Series, The Hindu, Business Line, Actualidad Economica, La Vanguardia, and Diario Financiero (Chile). He has also contributed several book chapter on enterpreneurship and strategy. He received a B.Com. degree from the University of Madras, an MBA from IESE Business School, and a Ph.D. from the Darden Graduate School of Business, University of Virginia. Sankaran Venkataraman (Venkat) is the MasterCard Professor of Business Administration at the Darden Graduate School of Business Adminstration, University of Virginia, where he teaches MBA and executive level courses in strategy and entrepreneurship. He also serves as the Director of Research of the Batten Institute and is the Editor of the Journal of Business Venturing. He consults with Fortune 500 firms as well as several small companies. He is advisor to firms, universities and government organizations. He is a speaker for and advisor to the Entrepreneurial Forum, a program of the International Trade Administration of the U.S. Department of Commerce aimed at promoting trade through entrepreneurship around the world. He received his M.A. in Economics from the Birla Institute of Technology and Science, Pilani, India; his MBA from the Indian Institute of Management (Calcutta); and his Ph.D. from the University of Minnesota.     

Ethics and Executive Coaching: An Agency Theory Approach

In recent years executive coaching has become an important management development practice in many organizations. Executive coaching is a partnership between a management level client and a coach hired by an organization to assist the executive in becoming a more effective and successful manager. While executive coaching has become a frequent and important practice in organizations, there has been relatively little serious consideration of the complex ethical issues that arise for persons and organizations. This study proposes that executive coaching involves an agency relation with specific moral duties that go beyond the usual standards of professional ethics. Agency theory, and in particular a focused understanding of the agency relationship, can provide a needed ethical grounding and basis for moral thinking about executive coaching.     

Illusions of marketing planners

The article highlights the risks of using self‐evaluation as a substitute for primary and secondary market research when designing and monitoring marketing programs. Included is a study of 110 management teams that suggests internally dominated marketing analysis may breed illusory evaluations of a company's own marketing programs versus competitors. If acted upon, such illusions could lead to oversights in developing marketing offerings. The overriding potential implication of the study addresses the allocation of a company's substantial marketing assets—most notably, the risks of bypassing secondary market data and primary market research when developing and evaluating marketing programs. © 2001 John Wiley & Sons, Inc.