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<title>Management IQ</title>
<link>http://www.businessweek.com/careers/managementiq//careers/managementiq/</link>
<description>Read the management consultants blog for future trends in management and learn mangement tips from famous business leaders.</description>
<language>en</language>
<copyright>Copyright 2008</copyright>
<lastBuildDate>Thu, 08 May 2008 17:53:28 -0500</lastBuildDate>
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<item>
<title>Hello, 1984</title>
<description><![CDATA[<p>Here's something to strike fear in the hearts of British job-seekers: Later this month, <a href="http://news.bbc.co.uk/2/hi/uk_news/magazine/7389547.stm">reports the BBC</a>, the UK'S National Staff Dismissal Register is expected to go live. What a dystopian name. Essentially, the NSDR is an online database of workers accused of theft, forgery or fraud by their employers, whether or not the police ever convicted them. Union groups and worry that it will lead to people getting shut out of the job market. Human rights groups question whether people who've been falsely accused will have an opportunity for redress. And this U.K. employment law blogger, <a href="http://blog.usefullyemployed.co.uk/">Usefully Employed</a>, questions what happens if someone resigns for reasons other tha1984 n why they were investigated?</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/hello_1984.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/hello_1984.html</guid>
<category>Employment Law</category>
<pubDate>Thu, 08 May 2008 17:53:28 -0500</pubDate>
</item>
<item>
<title>The Death of the Business Trip?</title>
<description><![CDATA[<p>I am furiously reporting a story about what companies are doing to reduce business travel.</p>

<p>Does anyone out there have a story to tell?</p>

<p>Please comment here if you do!</p>

<p>Thanks,<br />
Michelle Conlin</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_death_of_th.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_death_of_th.html</guid>
<category>Workplace</category>
<pubDate>Wed, 07 May 2008 14:05:20 -0500</pubDate>
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<item>
<title>Newsflash? Working Moms Work Late</title>
<description><![CDATA[<p>It's Mother's Day this weekend, and that occasion prompted the staffing service Adecco to release a survey about <a href="http://www.workingmomsblog.com/">working moms</a> working late. I'm not sure this qualifies as news--is anyone surprised that <a href="http://workingmotherblog.blogspot.com/">working moms</a> are just as likely as non-parents to work late and respond to e-mails after hours? What was surprising to me was that one-third of workers say they would be less likely to ask a working parent to work late. </p>

<p>I'm not a working parent myself, so I may get flamed for this comment. But the implication of that survey result is that there are some people who would ask non-parents to work late over a working parent. That sentiment bothers me. As a non-parent, I'd hate to get loaded up with extra work. And because working late sometimes means getting on challenging, deadline-intensive projects that could have career payoff, I'd hate to not be offered them just because I'm a <a href="http://www.workitmom.com/">working mom</a> (again, if I was one). I might have ready access to a babysitter, or a spouse who could cover for me. I might be able to do it later that night from home, after the kids were put to bed. And of course, I might not. </p>

<p>We're all adults here. In an ideal environment, <a href="http://www.businessweek.com/careers/workingparents/blog/">working parents</a> would feel free to say no when they're asked to work late if they can't, without repercussions. But the implication that some people avoid asking <a href="http://www.workingmomsagainstguilt.com/">working mothers</a> to do things--and therefore, causing them to lose out on some opportunities--isn't a good thing, either. </p>

<p>(To celebrate Mother's Day, I've linked to a bunch of Working Moms/Parents blogs I found through a quick Google search. How these folks have time to blog, work, and care for kids is impressive!)</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/newsflash_worki.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/newsflash_worki.html</guid>
<category>Careers</category>
<pubDate>Wed, 07 May 2008 11:24:23 -0500</pubDate>
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<item>
<title>The Power Business Ballad</title>
<description><![CDATA[<p>We've all been there. That moment at a colleague's retirement shindig, acompany holiday party, or a corporate retreat, when the nightmare hits:  What if this song or skit ends up on YouTube? How embarrassing would that be? These guys <a href="http://youtube.com/watch?v=0qAuqq1LFnU&mode=related&search">certainly </a>found out.</p>

<p>If that all sounds too familiar, you might enjoy this <a href="http://www.workforce.com/section/09/feature/25/51/35/index.html">piece </a>in Workforce Management provides scary look at the corporate power ballad. According to the story, there are actually half a dozen consulting outfits, such as this <a href="http://www.groovelabs.net/">one </a>that help employees come up with and produce corporate songs. Terrifying.</p>

<p>As the story describes, Bank of America isn't the only company that's turned a pop hit into a corporate ditty. Someone at Shell <a href="http://royaldutchshellplc.com/2006/11/13/song/">apparently </a>turned "We are the World" into a corporate anthem. Starbucks apparently made "We Built this City" into "<a href="http://www.spike.com/video/we-built-this/2730057">We Built this Starbucks</a>." (If anyone out there knows whether this is a joke and I'm the last person on the Internets to get it, let me know.)   </p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_power_busin.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_power_busin.html</guid>
<category>Culture</category>
<pubDate>Tue, 06 May 2008 18:38:35 -0500</pubDate>
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<item>
<title>Starbucks: It&apos;s the Coffee, Stupid</title>
<description><![CDATA[<p>Is it just me? </p>

<p>I was once a glutton for <a href="http://www.starbucks.com/">Starbucks</a>. The company's iced quad espressos had me flying all day. The stuff was crack. I was hooked. We were in love.</p>

<p>Of late, though, I have come to the conclusion that at the center of Starbucks <a href="http://starbucksgossip.com/">mounting woes </a>lies the simple fact: the coffee tastes bad. Burnt. Acidic. Bad- body-feelings-inducing. Nor does it inject that glorious kind of high that fuels office sloggers everywhere. The recent Pike Place Roast is no winner (blech) and has nothing on Dunkin' Donuts. </p>

<p>On a recent swing through London, I had the good fortune to partake of caffeine injections from <a href="http://www.caffenero.com/StoreLocator.asp">Cafe Nero</a>. The crush was instant! Delicious.</p>

<p>Starbucks, please please please. I want to love you again but you are losing me. Sample <a href="http://www.thecitybakery.com/">City Bakery's </a>brew. Putter over to <a href="http://www.caffeladro.com/stores.htm">Cafe Lladro </a>in your very own Seattle and dig up their secrets. Visit <a href="http://thegreydog.com/">Grey Dog's Coffee </a>in New York City and go all P. I. on the place.</p>

<p>This can't be that hard, can it? At Heathrow, I was delighted to sip some <a href="http://www.illy.com/wps/wcm/connect/us/illy">Illy Cafe.</a> There are also a grand sweeiping international chain. There was a Starbucks across the way but I didn't want to be disappointed. My Illy double espresso was everything I had hoped for. So I had another. They won.</p>

<p>Is it just me? What does everyone else think? </p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/starbucks_its_t.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/starbucks_its_t.html</guid>
<category>Innovation</category>
<pubDate>Tue, 06 May 2008 10:57:00 -0500</pubDate>
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<item>
<title>A rare find: the female &quot;thinker&quot;</title>
<description><![CDATA[<p>Another day, another <a href="http://online.wsj.com/article/SB120994594229666315.html?mod=todays_us_nonsub_marketplace">guru list</a>. This time, <a href="http://online.wsj.com/public/us">The Wall Street Journal</a> has come up with its list of top business gurus--led by strategist <a href="http://www.garyhamel.com/">Gary Hamel</a>. Next on the list is <a href="http://www.thomaslfriedman.com/">Thomas Friedman </a>(whose book, The World is Flat, I admit I haven't read though it's the subject of a <a href="http://en.wikipedia.org/wiki/Matt_Taibbi">Matt Taibbi</a> piece that I found to be one of the <a href="http://www.nypress.com/18/16/news&columns/taibbi.cfm">funniest book reviews ever</a>). Then there's <a href="http://www.microsoft.com/presspass/exec/billg/bio.mspx">Bill Gates</a> (yeah, yeah), <a href="http://www.gladwell.com/">Malcolm Gladwell </a>(note to self: become an influencer) and 16 other men held up for their provocative, interesting and (one assumes) lucrative insights. </p>

<p>What's not in the top 20: a woman. Wendy Bounds <a href="http://blogs.wsj.com/independentstreet/2008/05/05/where-are-all-the-female-business-thinkers/?mod=WSJBlog">blogs on this</a> today but doesn't come to any conclusions. Are we all too busy pondering what to put in school lunches to take a break to pontificate about business? I don't think so. There are plenty of female consultants, authors and (to a lesser extent) business leaders out there.</p>

<p>But I notice something about women when they step into guru roles. They tend to direct their brain power to taking a back-room role with their clients or research a problem without pretending they've found a quote-worthy way to fix it. </p>

<p>Am I stereotyping? Sure. Then again, just look down the roster of any gathering-of-the-giants business event and note the dearth of women on it. Those who are there are often plucked from the handful of female CEOs (who, like most sane company leaders, have smart but rarely fiery things to say), or they are consultants with helpful (but rarely provocative) advice. </p>

<p>So who are the female gurus and why aren't there more of them?<br />
</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/a_rare_find_the.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/a_rare_find_the.html</guid>
<category>Thought Leaders</category>
<pubDate>Mon, 05 May 2008 15:35:12 -0500</pubDate>
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<item>
<title>The Greening of Warren Buffett?</title>
<description><![CDATA[<p>I just got notice that a group of Native women will stage a protest tonight over Warren Buffett’s "fish killing dams" on the Klamath River in Northern California. My first thought was: "Warren Buffett owns a dam?"</p>

<p>Then I remembered the brouhaha over Berkshire holding, <a href="http://www.pacificorp.com/Navigation/Navigation3877.html">PacifiCorp</a>., which does operate the long-standing dams in question. While some might wonder about the political heft of women donning placards outside a cocktail party in Omaha, blogger <a href="http://gristmill.grist.org/story/2008/4/14/01432/7381">Ted Nace</a> points out that Buffett has proven himself to be open to persuasion on matters of the environment. Or at least Buffett is aware of where the world is heading in terms of regulation and demand. He cancelled six proposed coal plants last year, without fanfare. </p>

<p>Smart move, as Lester R. Brown and Jonathan G. Dorn of the Earth Policy Institute have just predicted "<a href="http://earthpolicy.org/Updates/2008/Update70_timeline.htm">the beginning of the end for coal</a>." Groups like <a href="http://cmnow.org/59plants.pdf">Coal Moratorium Now</a> have chronicled similar developments.</p>

<p>It worked for coal. Buffett turned away from tobacco (what's not to love?) for similar societal reasons. Maybe sushi lovers of the world will unite behind the women of the Klamath River Basin to lobby hard for salmon, too.</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_greening_of_2.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/05/the_greening_of_2.html</guid>
<category>People in the News</category>
<pubDate>Fri, 02 May 2008 19:20:22 -0500</pubDate>
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<item>
<title>Something to Chew On</title>
<description><![CDATA[<p>Everyone listens to <a href="http://en.wikipedia.org/wiki/Warren_Buffett">Warren Buffett</a>. The world's richest man is often hailed as one of the greatest stock pickers in history. So why is Buffett <a href="http://www.businessweek.com/ap/financialnews/D90AT0QO0.htm?chan=top+news_top+news+index_top+story">buying a stake </a>in <a href="http://investor.wrigley.com/phoenix.zhtml?c=92701&p=irol-newsArticle&ID=1135540&highlight=">Wrigley</a>, the maker of Juicy Fruit and Doublemint gum (the latter of which I'm chewing to get in the mood as I write)? It's not like the candy business is <em>the</em> place to be in this age of paranoia over obesity, sugar and long-term health.</p>

<p>But I'll tell you what has impressed me about Wrigley in recent years. First is the level of innovation coming out of the company. Every time I turn around there's yet another flavor or new form of packaging for its products. Even my kids (who, of course, only chew sugar-free stuff like Extra and Orbit) notice it.</p>

<p>Second is the international reach of the Wrigley brands. Whenever I travel, I'm struck by how often Wrigley products are on offer at even the smallest roadside stands. Like <a href="http://www.coca-cola.com/glp/d/index.html">Coca-Cola</a>, being the dominant player in its category gives Wrigley an advantage in expanding into new markets. Gum, like soft drinks, is a category where brand recognition is a huge factor in purchasing. As people in emerging economies become more affluent, they typically become more interested in buying little treats for themselves and their children. That's a hedge against whatever forces may dampen consumption at home.  </p>

<p>Wrigley has a daunting competitor in <a href="http://www.cadburyschweppes.com/EN">Cadbury </a>(which has been nibbling away at market share with innovations of its own in products like Trident). But the product war has served to make the whole gum category more appealing, in my view. </p>

<p>Yes, Wrigley makes more than just gum (just as <a href="http://www.mars.com/global/home.htm">Mars</a>, its new parent, makes more than chocolate bars). But Wrigley has wisely made a strong push in recent years to pay more attention to the product that made it famous. The result is a company with a stronger focus, better product line and invigorated sales -- the kind of thing Buffett likes to see.</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/something_to_ch.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/something_to_ch.html</guid>
<category>Innovation</category>
<pubDate>Mon, 28 Apr 2008 11:08:21 -0500</pubDate>
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<item>
<title>Workplace Democracy, Take 2</title>
<description><![CDATA[<p>Back in September, <a href="http://www.businessweek.com/careers/managementiq/archives/2007/09/can_a_workplace.html">I wrote </a>about an organization called WorldBlu, and a concept known as "workplace democracy." While that may sound like an oxymoron to anyone slaving away under the thumb of a toxic boss--or any shareholder wishing for access to a proxy ballot--WorldBlu's chipper founder, <a href="http://www.worldblu.com/studio/people.php">Traci Fenton</a>, believes it's possible. She believes a "democratic" organization is one that has a flat organization, employs open-book management, encourages employee ownership, and at times even lets employees vote on ideas or leaders.  </p>

<p>I'm not entirely sold that the concept has legs--far too many corporate managers would have difficulty with the voting concept, at least--Fenton publishes a list each year on companies that each pay money to apply. That surprised me, but according to Fenton, that's the case with the Great Places to Work list published by Fortune each year, too. For what it's worth, here's a link to <a href="http://www.worldblu.com/scorecard/list2008.php">this year's list</a>, which includes companies ranging from Second Life creator to carting service 1-800-GOT-JUNK?</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/workplace_democ.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/workplace_democ.html</guid>
<category>Workplace</category>
<pubDate>Mon, 21 Apr 2008 17:58:48 -0500</pubDate>
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<title>Bezos on Innovation</title>
<description><![CDATA[<p>In last week's edition, I put together our annual package on the <a href="http://www.businessweek.com/magazine/toc/08_17/B4081best_companies_at_innovation.htm">World's Most Innovative Companies</a>. The theme of this year's package: How the smartest companies on innovation are thinking about the topic in a downturn. We turned to Jeff Bezos, CEO and founder of Amazon.com, for his thoughts on the topic, as the e-commerce maverick has weathered some pretty tough storms, and kept spending through the worst of it. A couple of thoughts from Bezos that come from my colleague Peter Burrow's <a href="http://www.businessweek.com/magazine/content/08_17/b4081064880218.htm?chan=magazine+channel_special+report">Q&A</a> are here:</p>

<p>--On innovating under constraints: "I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out."</p>

<p>--On customer needs: "Companies get skills-focused, instead of customer-needs focused. When [companies] think about extending their business into some new area, the first question is 'why should we do that—we don't have any skills in that area.' That approach puts a finite lifetime on a company, because the world changes, and what used to be cutting-edge skills have turned into something your customers may not need anymore. A much more stable strategy is to start with 'what do my customers need?' Then do an inventory of the gaps in your skills."</p>

<p>--On failure: "Also, people who want to pioneer and find new ways of doing things know there are going to be ups and downs, that there will be profound moments of success and failure. And that's O.K. It's not an experiment if you know it's going to work."<br />
</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/bezos_on_innova.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/bezos_on_innova.html</guid>
<category>Leaders</category>
<pubDate>Mon, 21 Apr 2008 17:46:13 -0500</pubDate>
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<item>
<title>How to destroy a team and get rich at the same time</title>
<description><![CDATA[<p>Don't pity <a href="http://www.nba.com/history/players/thomas_summary.html">Isiah Thomas</a>. The disgraced New York Knicks chief has finally got the boot as coach (he already lost the title of president). </p>

<p>Along with building what New York magazine calls <a href="http://nymag.com/news/sports/45787/">Absolutely, Positively the Worst Team in the History of Professional Sports</a>, Thomas has apparently cost Madison Square Garden and CEO James Dolan <a href="http://www.portfolio.com/executives/features/2008/04/04/The-Isiah-Thomas-Tax">$187 million </a>during his four-year tenure. And never mind the stench that still lingers in the minds of those who don't even care about basketball after his <a href="http://sports.espn.go.com/nba/news/story?id=3037186">embarrassing testimony</a> in a sexual harassment trial that resulted in the franchise paying out $11.5 million to a former employee. </p>

<p>And what does Thomas get for all this? A chance to remain with the team as a personal adviser to the man who replaced him as president, Donnie Walsh, not to mention his millions in the bank. Harsh punishment, indeed.</p>

<p><br />
</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/how_to_destroy.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/how_to_destroy.html</guid>
<category>People in the News</category>
<pubDate>Fri, 18 Apr 2008 22:28:34 -0500</pubDate>
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<item>
<title>The Young &amp; the Restless...in China</title>
<description><![CDATA[<p>I went to a fascinating documentary preview last night at Cinema Village in downtown New York. The film, "<a href="http://www.ambrica.com/china.html">Young & Restless in China</a>," follows nine young Chinese citizens navigating the booming growth of their country's nascent economy and the rapid changes existing all around them. The film grew out of a study run by Katzenbach Partners, a smart New York-based organizational consulting firm founded by former McKinseyites. The study, known as <a href="http://www.china2024.com/main.asp">China 2024</a>, is the brainchild of founding partner <a href="http://katzenbach.com/People/PersonInstance/tabid/74/Default.aspx?Entity_ID=7">Niko Canner</a> and Katzenbach associate <a href="http://katzenbach.com/People/PersonInstance/tabid/74/Default.aspx?Entity_ID=132">Stacy Palestrant</a>, who's now based in China. Beginning in 2004, the two decided to study 114 MBAs who were just starting their careers, following their paths over the next 20 years. (Talk about long term perspective!) The group included students who'd gotten their MBAs from Chinese business schools or top-tier U.S. schools, and I had the privilege to meet a few of them for a <a href="http://www.fastcompany.com/magazine/90/fasttalk.html">story </a>at my former job. </p>

<p>Four years in, Katzenbach is starting to <a href="http://katzenbach.com/Work/News/NewsInstance/tabid/60/Default.aspx?Entity_ID=305">talk </a>about the findings of their study, and a few of the members of the China 2024 group are now featured as part of filmmaker <a href="http://www.ambrica.com/companyhistory.html">Sue Williams</a>' documentary. You can check out <a href="http://www.ambrica.com/chinavideos.html">previews </a>here; watch for the entire film when it airs on PBS in June. </p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_young_the_r.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_young_the_r.html</guid>
<category>Talent</category>
<pubDate>Thu, 17 Apr 2008 12:26:08 -0500</pubDate>
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<item>
<title>The Lore of the Wizards</title>
<description><![CDATA[<p><img alt="home-book-cover.jpg" src="/careers/managementiq/archives/home-book-cover.jpg" width="180" height="294" /></p>

<p>The cover--a guy in a tie, suspenders and pointy wizard's hat circles a glowing magic wand around him--looks like it must be a satire. Or at least intended to be funny, especially with a title like "Lore of Wizards: Consultants Talk about Consulting."  But in fact, the "book" (I can't tell that it's actually been published anywhere but online) is an earnest guide to getting into consulting and what kind of skills are needed. </p>

<p>That's the topic of <a href="http://www.loreofwizards.com/chapter2.html">chapter 2</a>, which details how consultants need to be "great appropriators," have "the ability to tune in," and a "competitive drive to excel and succeed." What they don't include as needed skills (or at least I didn't see it) is the ability to talk for two hours about something that could be covered in 10 minutes. Or the skill to charge insanely high fees for advice everyone already knows. </p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_lore_of_the.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_lore_of_the.html</guid>
<category></category>
<pubDate>Wed, 16 Apr 2008 16:58:19 -0500</pubDate>
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<item>
<title>The People Who Beat You Up: Your Best Innovators</title>
<description><![CDATA[<p>Perhaps no company gets bashed more than Wal Mart. They inspire documentaries, satires, musicals, loads of exposes. And their own special section at Barnes & Noble.</p>

<p>In the lemons-to-lemonade department, ceo Lee Scott recently spoke to Stanford B School students about how he listened to the company's critics to take cues for innovation. </p>

<p>Turns out there is something to be learned from the venom on the web.</p>

<p>Here's the link: <a href="http://www.gsb.stanford.edu/news/headlines/walmart_scott.html">http://www.gsb.stanford.edu/news/headlines/walmart_scott.html</a></p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_people_who.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/the_people_who.html</guid>
<category>Innovation</category>
<pubDate>Wed, 16 Apr 2008 15:57:18 -0500</pubDate>
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<item>
<title>Shareholders Score at WaMu</title>
<description><![CDATA[<p>At the <a href="http://finance.yahoo.com/q?s=WM&x=35&y=7">Washington Mutual</a> annual meeting today, the score on three key shareholder issues was activists three, bank zero. The nation's largest thrift, which <a href="http://investors.wamu.com/interactive/ir/102028/q1/pr102028.htm">reported a $1.1 billion loss</a> for the first quarter and has been among the hardest hit by the subprime mortgage crisis, has come under heavy fire in recent months. And under even more at today's shareholder meeting: "It's no longer a WaMu board," said Scott Adams, a representative from the American Federation of State, County and Municipal Employees (<a href="http://69.18.195.245/index.cfm">AFSCME</a>), who was interrupted by applause. "It's more like a Wa-Me board, short for what's in it for me. The mutual is gone." </p>

<p>Shareholders managed to win big on three fronts. One of two shareholder proposals on the proxy ballot, a separation of the Chairman and CEO posts currently both held by Kerry Killinger, won 51% of the vote, a rare majority win for shareholders. Earlier today, director and finance committee chair <a href="http://investors.wamu.com/irweblinkx/bio.aspx?IID=102028&PID=99688&AIP=312&PersonSection=12551">Mary Pugh</a>, who was responsible for monitoring the bank's risk management, resigned under pressure. Several shareholder groups and proxy watchers, including Proxy Governance, ISS and Change to Win (CtW) had all called for shareholders to withhold votes for her reelection.    </p>

<p>And perhaps most notable: WaMu reversed a much-criticized decision to leave out the company's mortgage-related losses when calculating profits that determine executive bonuses for the year ahead. The move effectively shielded executives from further fallout in the housing crisis, and was widely scoffed at by pay consultants. Shareholders were incensed. “It doesn’t make any sense to exclude some of the most significant lines of business they’re in,” says Richard Clayton, research director at <a href="http://www.changetowin.org/">CtW</a>. As recently as a few weeks ago, the company was defending the move. "WaMu's executive compensation program is designed to align compensation with the company's current and long-term business strategy and goals," wrote one spokesperson in an email on March 25. "As a result, management is held accountable for total company performance."</p>

<p>Is today's WaMu meeting a tipping point for shareholder success? It's too early to tell, and WaMu's case is extreme. But the bank's succumbing to executive pay criticism, the departure of Mary Pugh, and the high vote on the CEO-Chairman role is one more indication of a new era of shareholders' weight in the often arcane world of corporate governance. Just don't expect them to rest on these wins. CtW is already calling on the company to release full election results and <a href="http://www.ctwinvestmentgroup.com/index.php?id=94">believes </a>preliminary results may point to other directors failing to win a majority. "It’s disappointing that it took the concerted action of shareholders to correct the failure of the compensation committee," said CtW executive director William Patterson in a statement. "To avoid a repeat failure by the compensation committee, we have called on Washington Mutual’s board to immediately request the resignation of [compensation] Committee Chairman James Stever."</p>]]></description>
<link>http://www.businessweek.com/careers/managementiq/archives/2008/04/shareholders_sc.html</link>
<guid>http://www.businessweek.com/careers/managementiq/archives/2008/04/shareholders_sc.html</guid>
<category>Corporate Governance/Boards</category>
<pubDate>Tue, 15 Apr 2008 18:15:09 -0500</pubDate>
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