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EXECUTIVE WATCH GlobeSt.com:
BY ANTHONY J. LOPINTO
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| EXECUTIVE WATCH
is a weekly column featured on GlobeSt.com, the leading online real estate
news site. Tony LoPinto, the CEO of Equinox Partners has been the
author of this widely read column.
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EXECUTIVE WATCH PERSPECTIVE
By Anthony J. LoPinto
October 30, 2007
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Last week's news that Merrill Lynch took an $8.4-billion write down connected to its revaluation of mortgage-related assets--the largest loss in Wall Street memory--was followed within five days by the firing of its CEO, Stan O'Neal. Clearly, a well-deserved boot for a guy who not only shoulders the blame for the latest financial fiasco, but was also credited in a Wall Street Journal article on Monday with an aloof and arrogant management style. A by-product of the Enron era is the increasingly aggressive nature of corporate boards to move quickly to sack the CEO for poor performance. There is a strong trend toward compensation plans that pay for performance--providing financial rewards based on what one produces. The Merrill story reveals that the reverse can also be true: "You'll pay for your performance."
© 2007 - GlobeSt.com, all rights reserved.
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