The Securities and Exchange Commission has backed a proposal to require top executives to return performance-based bonuses and other incentives if financial results are restated because of errors. The clawback rule is subject to public comment and a second vote before taking effect. The plan aims to implement the Dodd-Frank Act's "objective to recover funds that should not have been paid out in the first place," SEC member Kara Stein said.
The Executive Office of the President has missed important cybersecurity reporting deadlines for three years, say the heads of two Senate committees that oversee cybersecurity compliance. In a letter to the president detailing their concerns, Sens. John Thune, R-S.D., and Ron Johnson, R-Wis., write that the White House last supplied a cybersecurity compliance report to the Office of Management and Budget in fiscal 2008.
To get a loan from Credito Emiliano, an Italian regional bank, small-business owners must put up wheels of Parmigiano-Reggiano as collateral. The cheese is stored in climate-controlled, bank-owned warehouses capable of holding 440,000 80-pound wheels of cheese, as part of a program intended to help dairy farmers who need capital during the cheese's maturation period.
Cyberinsurance is a new market established to provide coverage for businesses -- including contracting firms -- at risk of cybersecurity breaches. In the event of a cybersecurity issue, losses can include payouts to third parties harmed by the disclosure of personal information, as well as the costs associated with following regulations such as notices to possibly affected parties. Although such losses may be covered by general liability, excess or even crime policies, a specific policy may be required in case existing policies don't cover them, three attorneys write.
Some business thinkers appear to believe that making workers happy is less important than ensuring their engagement, but the two qualities are linked, writes Rodd Wagner. Engagement without concern for employees is one-sided, Wagner argues. "[T]he leader who unreservedly wants the best for his or her workers will find they reciprocate with tremendous commitment to the firm and intensity in their work," he writes.
Market participants were concerned an additional second Tuesday would cause havoc, but it passed relatively smoothly. Some exchanges avoided the leap second, set at midnight Greenwich Mean Time, by opening late or closing early. Others, including exchanges in Japan and Australia, traded through the extra second and saw few issues.
The U.S. Export-Import Bank's charter has expired, and the bank should announce a plan for liquidating assets, seven Republican senators said in a letter to bank Chairman Fred Hochberg. The bank no longer accepts new business but has said it will remain open to manage $112 billion of obligations.
Coaching people on your team can be difficult, Dan Rockwell writes, and so it's important to build trust, agree on values and be curious without being manipulative. Similarly, just as you wouldn't hire a new employee and offer no training, new managers should not be thrown into the mix without onboarding, Beth Miller argues.
The nation's corporate leaders are out of touch when it comes to cybersecurity, research shows, and that may be putting their companies at risk. A National Association of Corporate Directors survey found that 11% of board members consider themselves highly knowledgeable about issues such as data security, with the heath care sector showing a particular lack of cyberknowledge.
Struggling companies often hire an outsider as CEO, but the track record of hiring based on reputation is not good. Worse, the need to bring in an outsider, even a successful one, "is the result of a critical failure to nurture and develop new leaders within one's own organization," Noel Tichy writes.