The CLS Blue Sky Blog – Do managers seek control of the firm, or the level of ownership consistent with entrenchment? Entrenched managers own shares within a range which is high enough to give them control, but sufficiently low to make other shareholders bear the brunt of their non-value maximizing actions. There is a large literature on how entrenched managers can benefit themselves by extracting wealth from other shareholders, but conclusive evidence that managers seek entrenchment is currently lacking.
Business Law
Ukraine’s Quietly Revolutionary Debt Restructuring
Financial Times – Ukraine’s debt restructuring plan, announced last month, is both revolutionary and evolutionary. The agreement to restructure $18bn of privately held government debt stands in stark contrast to Greece’s nearly apocalyptic showdown with the European Union this year and Argentina’s simmering standoff with holdout creditors.
Greece, Argentina Provide Model as Ukraine Considers GDP Linkers
BloombergBusiness – As debt talks intensify between Ukraine and its creditors, securities that pay out if economic growth exceeds expectations will probably be on the agenda, echoing deals done by Argentina and Greece in the past decade.
Time to Flex
Giving Workers More Control of Their Time May Be Good for All
Rep-Am.com – When she first began working there 15 years ago, Beekley Corp. in Bristol was a fairly traditional company. “We were of the mind that everybody needed to be here, 9 to 5,” said Maureen O. Gallo, vice president of human assets and operational excellence at the medical supply company. But when the company began asking its employees what it could do to make them perform at their highest level, one fact was clear: They wanted flexibility.
Is it Time to Hire a Chief Legal Strategist?
MIT Sloan Management Review – Could your company use its legal environment to look for strategic opportunities? Consider bringing in a chief legal strategist, recommend Robert C. Bird, associate professor of business law and Northeast Utilities Chair in Business Ethics at the UConn School of Business and David Orozco, an associate professor of legal studies and MBA program director at the Florida State University College of Business.