Pay CEOs in decade-locked shares, says Norway SWF

first_imgThey should provide transparency on total remuneration to “avoid unacceptable outcomes”, and ensure all benefits had a clear business rationale, it said.“We will invite peer investors to consider shared principles for effective remuneration, and we will discuss with boards how this general position could be applied, taking into consideration the company’s specific circumstances,” NBIM said.Pensionable income should, the manager said, constitute a minor part of a chief executive’s total remuneration.“The board should commit to not offering any end-of-employment arrangements that effectively shorten or dilute the lock-in of shares,” it added in the paper.NBIM said that requiring the chief executive of a company to be a long-term shareholder seemed to be an under-utilised strategy for aligning the interests of the CEO with those of shareholders.It argued that requiring the chief executive to invest a “meaningful” part of their remuneration in company shares was a simple and transparent way of aligning that individual’s interests with those of shareholders and the wider society.However, it acknowledged the counter-argument that locked-in shares could drive up total pay levels, if chief executives demanded compensation for the increase in perceived remuneration risk.“Increased equity exposure and deferral is a cost to the CEO, but removing performance conditions will at the same time reduce uncertainty for the CEO,” NBIM said. The manager of Norway’s NOK7.9trn (€861bn) sovereign wealth fund has taken a stand on the contentious issue of top executive pay at listed companies, saying it should be driven by long-term value creation.In a position paper on CEO remuneration, Norges Bank Investment Management said: “A substantial proportion of total annual remuneration should be provided as shares that are locked in for at least five and preferably 10 years, regardless of resignation or retirement.”Releasing the report, the manager of the Government Pension Fund Global (GPFG), said that as a global investor its main concern was that CEO remuneration should be value-creating for the company and shareholders.Apart from making sure remuneration was driven by long-term value creation and aligned chief executive and shareholder interests, boards should also develop pay practices that were simple and did not put undue strain on corporate governance, it said.last_img read more

Why doctors get it wrong about when you will die

first_imgThe Guardian 2 June 2015One of the largest reviews, published in the British Medical Journal, systematically reviewed survival predictions in terminally ill patients with cancer. Eight studies were analysed in three countries over 30 years.Overall, doctors’ predictions were correct to within one week in 25% of cases, correct to within two weeks in 43%, and correct to within four weeks in 61%. The study found that doctors tended to overestimate survival.The very measure of a doctor lies in their predictive abilities, their grasp of the crystal ball: “How long have I got, doctor?” The Corpus Hippocratum of early Greek medicine underlined just that: “I hold that it is an excellent thing for a doctor to practise forecasting. For indeed, if he discover and declare unaided by the side of his patients their present, past and future circumstances, he will be able to inspire greater confidence that he knows about illness, and thus people will decide to put themselves in his care.”Why is it so difficult to prognosticate?Every patient is different, every disorder is different, every disorder within a disorder is different. People are unpredictable, their illness even more so. But there exist other subtleties that are harder to admit to.Jules Montague is a consultant neurologist at the Royal Free London NHS Foundation Trust, and an honorary consultant neurologist at the National Hospital for Neurology and Neurosurgery, Queen Square. read more

St. Nicholas Trojans get ‘W’s’ Over Raiders

first_imgSt. Nicholas 7th and 8th Grade Teams defeat South Ripley.The 7th grade team took the match in 3 sets with scores of 25-12, 21-25, and 15-12. Ella Fledderman served 22/24 with 14 Ace serves, and Taylor Whitehead served 16/18 with 7 Aces.The 8th grade team won in 2 sets with scores of 25-19 and 25-19. Molly Gregg served 14/15 with 7 Ace serves.It was a team effort for both the 7th and 8th grade teams. They played well as a team and consistently passed the ball in order to set it up for the attack.They play at South Dearborn on Wednesday (9-9).Courtesy of STN Coach Debbie Gregg.last_img