The push for transparency in CEO pay has pushed compensation even higher

OPEN SEASON

by James SurowieckiOCTOBER 21, 2013

In 1965, America’s big companies had a hell of a year. The stock market was booming. Sales were rising briskly, profit margins were fat, and corporate profits as a percentage of G.D.P. were at an all-time high. Almost half a century later, some things look much the same: big American companies have had a hell of a year, with the stock market soaring, margins strong, and profits hitting a new all-time high. But there’s one very noticeable difference. In 1965, C.E.O.s at big companies earned, on average, about twenty times as much as their typical employee. These days, C.E.O.s earn about two hundred and seventy times as much. Read more of this post

Amazon Has A Brutal System For Employees Trying To Get Promoted

Amazon Has A Brutal System For Employees Trying To Get Promoted

JAY YAROW OCT. 16, 2013, 8:56 AM 24,140 31

Getting a promotion at Amazon isn’t easy, Brad Stone of Bloomberg Businessweek reports. Here’s the way it works. To get ahead at Amazon, your boss has to debate why you deserve a promotion with other managers from the company. If he or she makes an effective case on your behalf, then you get the nod. If not, you wait another 12 months. These debates take place at two different meetings during the year. In the first meeting of the year, usually in February or March, according to a leaked presentation of how the system works, the senior staff talks about employees to see who’s doing well, and who isn’t, and who is getting a promotion. In the second meeting, which takes place in September or October, the leaders talk some more about who’s getting a promotion, and talk about who is doing well and who is doing poorly. Amazon’s managers group employees into three tiers: The top 20%, who are groomed for promotions, the next 70% who are kept happy, and the bottom 10%, who are either let go, or told to get it together. This system, which was created by Jeff Bezos, is supposed to cut down on politics and in-fighting. Unfortunately, Stone says it has the opposite effect. “Ambitious employees tend to spend months having lunch and coffee with their boss’s peers to ensure a positive outcome once the topic of their proposed promotion is raised in [the meetings],” says Stone. Stone also notes that promotions are very limited at Amazon, so if you fight for your employee to get a promotion, it means someone else’s employee gets snubbed. And anyone in the room can nuke someone else’s promotion.

A Kinder, Gentler Airport TSA Screening Checkpoint; Can Mood Lights, Nature Pictures and Piped-in Pandora Ease the Aggravation?

A Kinder, Gentler Airport TSA Screening Checkpoint

Can Mood Lights, Nature Pictures and Piped-in Pandora Ease the Aggravation?

SCOTT MCCARTNEY

Oct. 16, 2013 7:00 p.m. ET

Can a TSA airport checkpoint be made calmer and more hospitable? That’s what a few airports and a private company are now trying to do. Scott McCartney has a first look on the News Hub. A private company is working with airports to try to infuse calm and comfort into a very inhospitable place: the security checkpoint. SecurityPoint Media and Dallas-Fort Worth International Airport opened the first new checkpoint on Sunday, with the second to open at Charlotte-Douglas International Airport in North Carolina on Thursday. Read more of this post

Who owns English in a global market? Are the rules set by people who grew up speaking the language or those who learnt it later?

October 16, 2013 3:45 pm

Who owns English in a global market?

By Michael Skapinker

Are the rules set by people who grew up speaking the language or those who learnt it later? Asquabble – a civilised one, this being the Financial Times – occurred beneath one of my recent columns. It was about who sets the rules for English – those who grew up speaking the language or those who learnt it later? Reader Alan G wrote: “The challenge for native speakers is to keep up with the pace of change, not to promote the increasingly futile attempts to fossilise the language.” Read more of this post

General Electric gambled it could move machinery the size of a Space Shuttle orbiter via an Idaho highway despite failed efforts by others to use the same road in what so far has been a costly miscalculation

Road Too Far: GE Strains to Deliver Energy Colossus

Conglomerate’s Effort to Use Scenic Road to Move Giant Machine Stalls

KATE LINEBAUGH

Oct. 16, 2013 6:27 p.m. ET

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General Electric Co. GE +0.70% has a colossal problem. The industrial conglomerate makes a machine the size of a Space Shuttle orbiter that can extract crude oil from the depths of the Canadian oil sands. But first it has to get it there, and the only way is a road a federal judge says GE can’t use. Last week, GE lost an attempt to overrule a federal injunction preventing it from using a stretch of scenic Idaho highway to haul the giant piece of equipment, called a water evaporator. It has appealed the injunction. For now, though, the evaporator is stuck near the Port of Wilma in Clarkston, Wash., without a way to get to its destination hundreds of miles away in Alberta, Canada.

Read more of this post

Why Hospital CEOs Make So Much Money

Why Hospital CEOs Make So Much Money

RICHARD GUNDERMAN THE ATLANTIC
OCT. 16, 2013, 3:48 PM 1,536 4

Can you tell how good a job hospital CEOs are doing by the amount they are paid? A study by investigators at the Harvard School of Public Health this week suggests that the answer is no. Published in the Journal of the American Medical Association: Internal Medicine, the study found no link between nonprofit CEO pay and a number of important hospital quality indicators, including mortality rates, readmission rates, and the amount of charity care such institutions provide. Read more of this post

Milder Accounts of Hardships Under Mao Arise as His Birthday Nears

October 16, 2013

Milder Accounts of Hardships Under Mao Arise as His Birthday Nears

By CHRIS BUCKLEY

HONG KONG — The famine that gripped China from 1958 to 1962 is widely judged to be the deadliest in recorded history, killing 20 to 30 million people or more, and is one of the defining calamities of Mao Zedong’s rule. Ever since, the party has shrouded that disaster in censorship and euphemisms, seeking to maintain an aura of reverence around the founding leader of the Communist state. Read more of this post

China’s top 10 failing industries

China’s top 10 failing industries

Staff Reporter

2013-10-17

With some industries in China possibly facing bankruptcy, the Party-run Beijing Youth Daily interviewed several market observers and experts to compile a list of the top ten industries in China that are likely to face a shutdown. The first such sector could be that of group-buying websites. The group buying business model gained popularity when it was first introduced in March 2010. But several noted group buying sites, such as Tuanbao and Juqi, have been experiencing operational difficulties. Read more of this post

50%-off luxury goods coupons scamming China’s online shoppers

50%-off luxury goods coupons scamming China’s online shoppers

Staff Reporter

2013-10-17

Fake shopping vouchers are flooding China’s online trading platforms, deceptively offering 30%-50% discounts on foreign luxury goods. The 10-40 yuan (US$1.60-$6.50) slips could not possible offer such hefty reductions on internationally shipped goods, insiders said. Overseas shopping vouchers are no longer proof of the authenticity of luxury goods, as they are often forged by online shopping agents using thermal printers, an insider said in an interview with the Chinese-language Beijing Business Daily. Read more of this post

Out of nowhere, China’s smart TV market explodes into the mainstream

Out of nowhere, China’s smart TV market explodes into the mainstream

By Kaylene Hong, 17 hours ago

Chinese Internet companies are flocking into the smart TV space as they aim to conquer the living room. Recently, a flurry of firms have rolled out smart TVs in the country, hoping to draw consumers with an impressive large screen that is typically the centerpiece of any household, which includes a range of Internet-based entertainment services. Many new smart TVs have arrived in China in recent months. In early September, popular Chinese smartphone manufacturer Xiaomi announced its move beyond handsets as it launched a 47-inch 3D smart TV which is retailing for CNY2,999 ($490). The TV went on sale Tuesday, and 3,000 sets were sold out in under two minutes. Read more of this post

Four billion reasons why Veeva just proved verticals are the new hotness

Four billion reasons why Veeva just proved verticals are the new hotness

BY SARAH LACY 
ON OCTOBER 16, 2013

For enterprise software nerds like me, little-known and newly public Veeva might be the Dos Equis Man of startups: It may be the most interesting software company in the world.

I don’t always build a $4.5 billion software company, but when I do, it only raises $10 million pre-IPO and is focused narrowly on the healthcare industry. 

Veeva is the first company I’ve seen that holds up all of the early 2000s’ promises of cloud computing. The idea that the cloud enabled venture capitalists and entrepreneurs to build a big multi-billion dollar company on less than $30 million or so in funding. The idea that cloud software companies would be able to spend dramatically less on sales and marketing costs than the previous generation of on premise software giants. The idea that profits could come early and effectively bootstrap a company most of the way to its IPO. And the idea that software could become better for everyone — not just the mainstream big business customer. Read more of this post

Here’s Why Apple’s Passbook App Has Already Become A Major Platform For Mobile Commerce

Here’s Why Apple’s Passbook App Has Already Become A Major Platform For Mobile Commerce

MARK HOELZEL AND MARCELO BALLVE OCT. 16, 2013, 4:00 PM 4,537

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What is Passbook? The short answer is that it’s a place for large retailers and brands to connect with consumers. The list of the brands with a Passbook presence is impressive enough to suggest that Apple’s wallet app isn’t too far from being what it set out to become: an iPhone repository for coupons, travel and event tickets, gift and loyalty cards, and vouchers. The stuff that otherwise clutters wallets and purses, and powers commerce.  In the U.S. market, over 35 large retailers and restaurant chains — from Walgreens to Target to Dunkin’ Donuts to Starbucks — as well as event companies, global airlines, and sports leagues are already using it as a channel for acquiring and retaining customers. Apple’s Passbook is already the fourth-most popular mobile commerce app among U.S. consumers. One-fifth of iPhone owners use it. It’s Apple’s fast-maturing attempt at a virtual wallet. Apple has over 500 million credit cards on file. Amazon, its closest competitor in this regard, has less than half that amount of consumer accounts on file. Apple may one day leverage these credit cards to turn Passbook into a real transactions platform to boot, a la PayPal. Are brands ready?  Read more of this post

Jobs Right as Apple Consumers Prefer 5s to Cheaper IPhone: Tech

Jobs Right as Apple Consumers Prefer 5s to Cheaper IPhone: Tech

Apple Inc. (AAPL) co-founder Steve Jobs, who emphasized high-end consumer gadgets over cheaper ones, may have been right all along. Last month, Chief Executive Officer Tim Cook introduced the colorful iPhone 5c, a less-expensive version of Apple’s smartphone, to “serve even more customers” around the world. It turns out people so far are more interested in its pricier, feature-rich cousin, the 5s. Read more of this post

Microsoft Has Invented Earbuds That Pick Music According To Your Mood And Health

Microsoft Has Invented Earbuds That Pick Music According To Your Mood And Health

JULIE BORT OCT. 14, 2013, 7:30 PM 4,204 2

We’ve heard predictions that our PCs will soon be able to recognize our facial gestures and understand our moods (maybe even better than our spouses can). Now Microsoft is working on a technology that will let a pair of earbuds monitor your heart rate, temperature and other biorhythms to figure out your health and mood. It’s a Microsoft Research project is called Septimu. Researchers at the University of Virginia Center for Wireless Health have written a smartphone app called Musical Heart for the Septimu earbuds, as spotted by the CyThings blog. Musical Heart automatically picks music according to your biorhythms. If you are upset and your heart is pounding and your body is tense, it can choose music to calm you down. Or if you are working out and want to keep your heart rate at a particular intensity, it will choose music to motivate you. Right now these are just research projects, not products you can buy. But one day … In the meantime, you can use apps like Songza or Stereomood to get playlists of music that match your mood.

Robotic arm now reads feeling of ‘touch’

2013-10-16 16:42

Robotic arm now reads feeling of ‘touch’

By Ko Dong-hwan

American scientists have developed a robotic arm that can read tactile senses, helping people to recognize objects that they touch through the arm. Sensors attached to the arm “imitate” the pressure applied, enabling the person doing the touching to recognize the object. The arm can control the amount and timing of electric currents passing through the sensors at the moment of touching. When the sensors’ readings are sent to hundreds of electrodes planted in the person’s brain as packets of cognitive signals, the person can interpret the signals.  “Making people believe as if they were feeling through their fingers by sending signals from the robotic arm sensors to electrodes planted at brain is no longer an impossible dream,” said Chicago University’s Dr. Sliman Bensmaia, who led the research. Scientists have already devised robotic arms and legs that can recognize signals that enable the limbs to “think and move.” But tactile perception capability is a major breakthrough, overcoming the challenge of sending signals in a reverse order. Dr. Bensmaia’s paper, titled “Spatial and temporal codes mediate the tactile perception of natural textures,” was posted online at the U.S. Proceedings of the National Academy of Sciences on Tuesday.

Vox’s new mega-round puts a bow on content’s “holy shit” moment

Vox’s new mega-round puts a bow on content’s “holy shit” moment

BY HAMISH MCKENZIE AND SARAH LACY 
ON OCTOBER 15, 2013

Today it was revealed that Vox Media, owner of The Verge, SB Nation, and Polygon has raised another $40 million of funding. Then came BuzzFeed’s scoop that Glenn Greenwald, the political reporter who broke the ongoing saga of Edward Snowden’s NSA leaks, is leaving the Guardian to join a new, “very well-funded” media venture that will cover general news. The new publication, whichReuters reports will be funded by eBay founder Pierre Omidyar, is yet to be revealed.

We must now take a break from our scheduled programming to say: “Holy shit, content is back!”

It’s not just the mysterious Greenwald venture and Vox Media, which has now raised a total of $80 million and is expected to reach profitability this year, that are cause for mild tech-media enthusiasm, however. Read more of this post

The control freak formula at Apple and Burberry; Ahrendts’ move demonstrates how the strategies of the two groups are related

October 16, 2013 7:01 pm

The control freak formula at Apple and Burberry

By John Gapper

Ahrendts’ move demonstrates how the strategies of the two groups are related

To tour the Burberry flagship store on London’s Regent Street – with its beautifully stacked clothes, its “magic mirrors” that illuminate with runway images, its signs in Arabic for Gulf tourists and its “VVIP” room on the top floor – is to enter as sweet a world as Willy Wonka’s chocolate factory. Its Wonka is Christopher Bailey, Burberry’s chief creative officer, and designer of all the contents, including a £70,000 “limited edition” white alligator skin jacket. His theatre of luxury is a few notches up the price scale from the nearby Apple store, outside which a queue formed yesterday for the iPhone 5s, but they are related. Read more of this post

Groceries Become a Guy Thing: Packaging for products traditionally marketed with women in mind aims to win men over as they shop more

Groceries Become a Guy Thing

As Men Shop More, Packaging Aims to Win Them Over; ‘Inner Abs’ Appeal

ANNE MARIE CHAKER

Oct. 16, 2013 7:00 p.m. ET

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Yogurt for men is radically different from the yogurt women buy: The label is black. Food makers, including giants Kraft Foods Group Inc. KRFT +1.82% and General MillsInc., GIS +1.80% eager for any potential new sales, are trying to win over men. Research indicates men are doing a greater share of the grocery shopping and meal preparation. In a June survey of 900 meat-eating men ages 18 to 64, 47% were deemed “manfluencers” by Midan Marketing LLC, a Chicago market research group focused on the meat industry. Manfluencers are responsible for at least half of the grocery shopping and meal preparation for their households. Read more of this post

Hong Kong’s Enduring Identity Crisis; 16 years after the territory reverted to Chinese sovereignty, its residents feel increasingly uneasy with Beijing’s rule

Hong Kong’s Enduring Identity Crisis

16 years after the territory reverted to Chinese sovereignty, its residents feel increasingly uneasy with Beijing’s rule.

SEBASTIAN VEGOCT 16 2013,

By Sebastian Veg

When Hong Kong reverted to Chinese sovereignty in 1997, expectations were high—in Beijing and among the pro-mainland forces in Hong Kong—that identification with the Chinese nation would slowly but surely strengthen among the local population, especially among the younger generations, eventually solving the problem of Hong Kong’s full integration into China. Once the colonial education system ceased poisoning young minds, it was thought, future generations would embrace the worldview and politics favored in Beijing. However, 16 years later the situation is very different. It is precisely the younger generations, the ones educated after the handover, who are most hostile to the mainland and its local advocates. A June 2013 poll, the latest in a series released every six months, shows that identification with Hong Kong has even increased since the handover: today, 62 percent of the population identify primarily with Hong Kong and 38 percent exclusively. More surprisingly, the proportion is 84.3 percent among the 18 to 29 group (of which 55.8 percent identify exclusively with Hong Kong). Read more of this post

Hong Kong Peg Turning 30 as Another Decade Forecast: Currencies

Hong Kong Peg Turning 30 as Another Decade Forecast: Currencies

Banny Lam recalls how, in the first nine months of 1983, he helped his family stockpile rice as a drop of more than 30 percent in Hong Kong’s dollar led to panic-buying of goods. “Sometimes the shelves would be empty,” said Lam, the 41-year-old co-head of research at Agricultural Bank of China International Securities Co. in Hong Kong. “At that time, we just didn’t know what would happen tomorrow with the currency.” Read more of this post

BlackRock Cuts Hong Kong Investment Seeing Drop in Prices

BlackRock Cuts Hong Kong Investment Seeing Drop in Prices

BlackRock Inc. (BLK) is reducing its investment in Hong Kong, betting the city’s equity and property markets will trail other Asian countries as growth slows in the world’s two biggest economies. Hong Kong stocks may underperform as the U.S. pares stimulus and China tightens credit, said Andrew Swan, head of Asian equities at BlackRock, which manages $3.86 trillion as of June 30. Home values in the city may fall more than 10 percent into 2014 amid government measures to curb prices and rising U.S. interest rates, he said. Read more of this post

South Korea Introduces ‘Gangnam Style’ Tourist Police to protect tourists from being ripped off during their stay in the South Korean capital

South Korea Introduces ‘Gangnam Style’ Tourist Police

By Agence France-Presse on 2:34 pm October 16, 2013.
South Korean “tourist police” officers salute during their inauguration ceremony at Gwanghwamun square in Seoul on October 16, 2013. South Korea unveiled its new ‘tourist police’ force, with snappy uniforms from rapper Psy’s costume designer, formed to protect tourists from being ripped off during their stay in the South Korean capital. (AFP Photo/Jung Yeon–Je)

Seoul. South Korea unveiled its new “tourist police” force Wednesday, with snappy uniforms from rapper Psy’s costume designer and a “Gangnam Style” launch in central Seoul. Around 100 young policemen and women make up the first batch of the new force — formed to protect tourists from being ripped off during their stay in the South Korean capital. The officers were handpicked for their linguistic skills, and can speak a range of languages including English, Japanese and Mandarin. Read more of this post

FamilyMart joins 10,000 outlets in Japan club

FamilyMart joins 10,000 outlets in Japan club

JIJI

OCT 16, 2013

Major Japanese convenience store chain FamilyMart Co. now has more than 10,000 domestic outlets. FamilyMart is the third convenience store chain in Japan to reach the 10,000-store mark, following Japan’s largest convenience store chain, Seven-Eleven Japan Co., and the second-largest, Lawson Inc. FamilyMart opened its first store in 1973 in Sayama, Saitama Prefecture. “This achievement is just a passing point,” FamilyMart President Isamu Nakayama said at a ceremony held Tuesday at the 10,000th store, which opened in Nakano Ward, Tokyo. He said that as the FamilyMart name suggests, he hopes the chain will become popular with all people, including the elderly and women. Convenience stores in Japan exceeded 50,000 in 2012. The market is said to be saturated, but Seven-Eleven and FamilyMart each plan to open 1,500 new stores in the current business year. Major convenience store chains are trying to attract customers from other business categories amid intensifying competition. They have recently started focusing on the elderly and working women, with more frozen and prepared meals on offer.

FamilyMart launches pick-up service in Taiwan for Taobao products

FamilyMart launches pick-up service in Taiwan for Taobao products

CNA

2013-10-17

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Taiwan’s FamilyMart general manager, RD Chang, left, and Daphne Lee, director of overseas business for Taobao at a FamilyMart store. (Photo Courtesy of FamilyMart)

Taobao, China’s largest e-commerce website, has partnered with the FamilyMart convenience store chain to launch a pick-up service in Taiwan, the chain announced Wednesday. FamilyMart said it has now become the first convenience store chain in Taiwan to offer a cross-border pick-up service, which expected to boost the growth of its pick-up service by more than 10%. Read more of this post

The French will soon be able buy their cigarettes and do their banking at the same time with the launch of a stripped-down, cut price bank account by the country’s huge network of tobacconists

French banks face new foe as tobacconists offer accounts

12:23pm EDT

By Lionel Laurent and Matthias Blamont

PARIS (Reuters) – The French will soon be able buy their cigarettes and do their banking at the same time with the launch of a stripped-down, cut price bank account by the country’s huge network of tobacconists. France’s 27,000 “tabacs”, whose distinctive red, diamond-shaped signs dot the nation’s streets, will be out to win business from the likes of BNP Paribas and Societe Generale as established banks cut back their retail networks in a stagnating economy. Read more of this post

High-priced stocks are being traded in the dark

October 16, 2013 8:42 am

High-priced stocks are being traded in the dark

By Michael Mackenzie and Arash Massoudi in New York

A number of well-known US companies boast very expensive equity prices, but trading in these companies is increasingly taking place in the dark – a trend seen hurting individual investors. One-fifth of overall trading in US equities now consists of so-called odd lots, whereby a transaction consists of buying or selling less than 100 shares in a company. These trades are not publicly reported and their size in terms of overall US equity trading volumes has risen sharply since 2007, when electronic trading transformed the industry. Read more of this post

Germany’s biggest companies say they are looking to invest overseas rather than at home in the year ahead, suggesting that low investment in Europe’s biggest economy won’t improve soon

Corporate Germany Looks to Invest Overseas—Not at Home

Low Sales Growth, High Costs Deter Companies From Increasing Spending in Germany

NINA ADAM

EM-AX526_GERINV_NS_20131016094503

Oct. 16, 2013 9:14 a.m. ET

FRANKFURT—Corporate Germany is looking to invest overseas rather than at home in the year ahead, a Wall Street Journal survey of top German companies reveals, suggesting that low investment in Europe’s biggest economy won’t improve soon.  Read more of this post

Foreign lawyers face Indonesia ethics test

October 16, 2013 8:32 am

Foreign lawyers face Indonesia ethics test

By Ben Bland in Jakarta

From corrupt judges to dodgy lawyers and capricious verdicts, Indonesia’s legal system is widely acknowledged to be in crisis. But amid a climate of growing economic protectionism, Indonesia’s bar association has a new target in its sights: foreign lawyers. Although they are banned from practising Indonesian law and can only work as international legal consultants, the bar association is proposing a new requirement that foreign lawyers must pass an ethics exam in Indonesian if they want to keep working in the country. Read more of this post

Real Estate Heating Up in Indonesia

October 15, 2013

Real Estate Heating Up in Indonesia

By KEITH BRADSHER

JAKARTA, Indonesia — Gita Wirjawan, Indonesia’s trade minister, made a steeply rising motion with his right hand, like an airplane soaring into the sky, when asked about the surging real estate market in this country. “Scary, isn’t it?” he said. But Boediono, the vice president who uses only one name and has been a leading economic policy maker for the last 16 years, was much more sanguine. Read more of this post

Same Gene Mutations Tied to 12 Cancers; Research Finding May Lead to Better Treatment

Same Gene Mutations Tied to 12 Cancers

Research Finding May Lead to Better Treatment

RON WINSLOW

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Washington University’s Li Ding and others found that 12 types of cancer share the same genetic mutations.Robert J. Boston/Washington University School of Medicine

Oct. 16, 2013 6:46 p.m. ET

New results from the Cancer Genome Atlas research project identify a host of genetic mutations that are common among 12 different types of cancer, reflecting the growing understanding that tumors can be defined by their underlying biology rather than their location in the body. The report, published Wednesday by the journal Nature, is part of an effort to compile a list of all genetic mutations that can trigger the development and progression of tumors. Experts hope such a list will guide diagnosis of cancer and spur development of drugs that target the genetic anomalies, a strategy known as precision medicine. Read more of this post