{"id":382,"date":"2009-01-05T21:28:07","date_gmt":"2009-01-06T05:28:07","guid":{"rendered":"http:\/\/hodakvalue.com\/blog\/?p=382"},"modified":"2009-01-06T12:44:40","modified_gmt":"2009-01-06T20:44:40","slug":"checking-myself-to-see-what-has-rubbed-off","status":"publish","type":"post","link":"http:\/\/hodakvalue.com\/blog\/checking-myself-to-see-what-has-rubbed-off\/","title":{"rendered":"Checking myself to see what has rubbed off"},"content":{"rendered":"

Robert Frank, to whom I have been less than gracious<\/a> on this page, today pays me the highest compliment.\u00a0 In an article about CEO pay, he notes that<\/a>:<\/p>\n

In large companies, even small differences in managerial talent can make an enormous difference. Consider a company with $10 billion in annual earnings that has narrowed its C.E.O. search to two finalists. If one would make just a handful of better decisions each year than the other, the company\u2019s annual earnings might easily be 3 percent \u2014 or $30 million \u2014 higher under the better candidate\u2019s leadership… That\u2019s why companies where executive decisions have the greatest impact tend to outbid others in hiring the ablest managers.<\/p><\/blockquote>\n

Sound familiar?\u00a0 Here is what his NYU colleague said last May<\/a>:<\/p>\n

Consider that the average S&P 500 company has a market value<\/a> on the order of $10 billion. If one had to choose among CEO candidates, and the board believed that one candidate’s leadership was likely to yield a return on capital just one percentage point better than the next best candidate’s, that difference would be worth $100 million per year to investors. A conscientious board with the shareholder’s interests at heart could hardly risk letting the best candidate go elsewhere over even a few tens of millions of dollars.<\/span><\/p><\/blockquote>\n

Thanks Bob.\u00a0 I feel bad now about the other thing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Robert Frank, to whom I have been less than gracious on this page, today pays me the highest compliment.\u00a0 In an article about CEO pay, he notes that: In large companies, even small differences in managerial talent can make an enormous difference. Consider a company with $10 billion in annual earnings that has narrowed its […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-382","post","type-post","status-publish","format-standard","hentry","category-executive-compensation"],"_links":{"self":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/comments?post=382"}],"version-history":[{"count":4,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/382\/revisions"}],"predecessor-version":[{"id":386,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/382\/revisions\/386"}],"wp:attachment":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/media?parent=382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/categories?post=382"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/tags?post=382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}