Key Factors to a Supportive Environment

Key factors that remain firm speech, language and chat environment 1. Your room/ scene layout what does your physical environment look same? The noise level argon on that point quieter and noisier sports stadiums, planned times or activities. severalize There ar two main rooms that atomic number 18 in use during morning and afternoon sessions, the classroom and larger star sign rural ara. The classroom has a take corner with a childs size swan and soft cushions on the floor. This atomic number 18a is ideally for quiet time and pointing. The lie mound of the classroom and large hall allows for noisy and more social activities.Throughout the day there are planned adult lead activities, circle times, exterior romp, snack bar and lunch club. Which blend on a rota establish system. Quality of light are play areas well lit for children to enchant communicate well with distributively other, see mouth movements, resources stave. Evidence The classroom and main ha ll twain allow for a substantial occur of natural light through large windows and alike extradite more whence one artificial light in either room. infinite to move, expressively, with whole bodies, with and without speedEvidence The main hall area is a large present space with a substantial amount of room for children to move leave officely and expressively. This room is used for more active activities and similarly for when alfresco play is restricted due to poor weather conditions. The children exit use this area to build train tracks, stack blocks, act out role plays and unreal games, as well as group games such as hold over duck goose and ring a ring a roses. The outdoor area is also set up in a flair that allows for all types of movement. There is an large space for bikes and smalls cars, which is also used for obstacle courses and tents.This is divided from the rest of the playground by log stumps that the children can also walk across. Resources and toys is th ere a varied selection available for both indoor outdoor play. Evidence Within the classroom and hall there is a large variety of resources and toys to cater for all the children. For standard a home corner, roll play area, mark making area, play stops and sand/water trays, block building, music corner, small world toys, ICT area book corner. The external area has a large storage press which allows us to alternate what goes outside to create interest and excitement.There is an outside book corner with bean bags and blankets, large wooden blocks for building, play house with kitchen and work bench, prams, bikes and large cars, balls, rackets, a table and chairs to encourage mark making, blackboard with crackpot and a variety of playing apparatuss. 2. Staff Involvement/roles how does everyone interact with children to bring forward conference. Evidence Most children attending the pre-school will demand an all slightly me book, which their key person and whatsoever other leave member are allowed assess. It contains information and pictures on the childs life including family, pets, friends, likes and dislikes.The children also receive a subsidence in performer after two weeks of them attending the place. Which goes over how they are doing and is sent home to their parents to read and comment on, then sent buns in. This is kept in the childs learning journey. The children are also given a chance to bring forth their say on what they would like to do at pre-school, with the childrens planing board. Where any ideas that are given from the children are written on and then added to the planing in future sessions. We have a classroom rules board, illustrating the main rules of the setting. Which is positioned down low at the childrens eye level.There is also a how are you trace today poster with photos and illustrations of different nervus facialis expressions, again at the childrens eye level. We also try to sour with a positive language approach when reminding children of rules, for example saying walking feet and kind detention instead of no running and dont check each other. Staff responsibilities does a key person system operate to support your children? Evidence A key person system is operating(a) within the setting, each key person has on average 11 children under their cathexis and are also responsible for the overall care of every child.Observations are made on every child and logged in their learning journeys, which are kept in a locked cupboard. Planning periodic routines are there times of the day to support communication eg. greetings and goodbyes, gutter asking times? Small/large group and individual activities? Evidence Our setting works on an rota based system, in which there are set times for snack bar, lunch club, tidy up times, free play, adult led activities, nappy changes, circle times and outdoor play. This helps the children and staff to get into a routine.Who ever is responsible for nappy chang es that day will also be reminding children to go to the toilet, both are logged in a daily folder. The children are welcomed in the mornings/afternoons and self register with name cards. At the end of both morning and afternoon sessions the story of the week is read and the children can give thanks in prayer. The children are then reject when their allocated parent/carer arrives. Training opportunities? Child Development, Safeguarding, Impairment, Activity intervention & awareness.Evidence All staff are given the opportunity to attend relevant tuition that is practiced for the setting and themselves. I myself have already attended four development courses since joining in September 2012. Certificates given at the completion of the training days and are displayed on the environ inside the classrooms setting. We also have a weekly policy quiz, with a different quiz selected each week for staff to read through and then be time-tested on. 4. Parent & carer involvement Evidence T he Pre-school welcomes parent and carer involvement within and outside of the setting, especially during the festive period.We often have parent helpers for the day that provide us with an extra pare of hands. The pre-school also recently held a fundraising proceeds at the local community center, where we saw an overabundance of support from parents/carers. How does the setting engage with parents to share activity ideas, rhymes, resources, books, event dates, news, parents language needs, knowledge expertness Evidence Each week parents and staff receive the weekly modify sheet via email, which provides information on the up and coming week.This information consists of the theme of the week, number, garner sound and shape, story focus, our star of the week (child), important dates, resources needed for any activities planned, how they can support their child and a photo gallery of what their children have been up to in the previous week. 5. Language itself Identify the types of language/methods of communication used in the setting facial, body, creative, expressive and behavioral. Evidence At the hoodwink to the classroom there is a mood board on the wall with the phase how do you feel today.The board displays a variety of facial expressions and words for the children to relate to and caters especially to children still developing their speech or children that have English as an additional language. We also have a mark making area with creative resources for the children to express themselves. Throughout the setting there are posters and images reminding the children of the pre-school rules, for example use kind hands, put hands up during circle time, line up in a orderly line and two children at the I. T station. Additional Language-Is there support within the setting for children with additional languages. Evidence All resources accessible to the children are labelled with the relevant wording of the contents and a photo or picture to support visual a id. Around the main classroom we have numerals 1-10 in additional languages and greetings/farewells in multiple languages. When the children join the setting their parents/careers are asked if they speak any additional languages or if English isnt their first verbalize language. During circle times, we will often greet each child in an additional language.

Media Convergence Essay

What is meant by the term media convergence with regard to technology, and how has it moved(p) everyday life? For technology, media convergence is when different media come together to do a similar task. The poster child for this is the smart predict. Smart sounds atomic number 18 used to talk, text, email, social network, school, business, web browsing, and take video and video. There are things that Im sure I missed, but the smart ph one and only(a) has become the epicenter of technological convergence. I spend a dish out of my time on my phone posting and promoting for my business. I make jewelry, beep pads, and blankets so I make my items, take a picture, post it to my Etsy page, and crowd my store with my phone.When I get an order, I get an email to my phone I contact the buyer for details, and take payments all with my phone. With going to school, I need to check up on the forums to read and respond per folk requirements. It makes it easy to do my schoolwork when Im no t sign at my laptop. I can pull up the reading for the sort on my document reader on my phone and catch up while Im out and about. I occupy a six month old and I love taking his picture I take his picture and post it on Facebook, Instagram, and send it to my family.My family lives in another state so I use my phone to do FaceTime with them so we can see each other all the time. The smartphone has do productivity so much easier because its all in one place and instant gratification is satisfied. For some people, the smartphone has become a great(p) distraction and a burden. I think that cell phones, in general, have done damage to peoples grammar and spelling. They use stenography and abbreviations for nomenclature and have forgotten the rule of your and youre because they are using the shorthand ur. Its sad.

Ducati Case Analysis Essay

Executive SummaryAs of grade 2000, world(a) motorcycle commercialise is dominated by a handful of players. Nipponese manufacturers much(prenominal) as Honda, Yamaha, and Kawasaki argon misfortunate cost players while Harley and Ducati ar in the naughty end of the spectrum and bugger off been sufficient to successfully ready themselves as a premium brand. Harley dominates the cabin cruiser motor wheel instalment and is a really strong player in the US, where it has a big caramel follo get forwardg and loyal customer family. However Ducati has been struggling to emergence trade shargon and reach to Harleys level of profit margin that is ut nearlyest in industriousness. Ducati is self disc overing itself with Minoli to target right customer divisions, retaining its core competencies and establishing its brand name for which Ducati stands for.Minolis selectation of entering into Harleys niche securities industriousness of cruisers is an clarified choice for Ducatis future growth, as it reinforces the premium flagship of products that Ducati is famous for. We remember Ducati develop a sports-cruiser cycle that cristals the riding style and comfort of a cruiser such as Harley Davidson, and all the same be fast and nimble. We to a fault recommend saying customization capabilities through Ducati.com and company- stimulateed stores as wellspring as single franchise stores that would remain to offer the same legacy and brand connector that Ducati loyalists prefer. The motor cycle provide be priced at E12,000 (USD 16,200) which is right in the plod of Harleys custom cruiser motorbikes and impart take a dance step away from Ducatis current line of sports bikes. This move may hold the appearance _or_ semblance a bit insecurityy at first, but the fact that Ducatis R&D expenses will be fairly low payable to availability of high quality engines and large provider pool this will non require signifi give the gatet fresh investment to the current setup.Additionally, the company will be able to entice impudently customers in a niche segment with high margins and get a signifi washbasint hazard for gaining merchandiseplace share. Also, Introduction of these motorbikes in Europe initially will in like manner reduce the possibility of a backlash from Harley who is the leader in the US market. Ducati puke then expand to US once they have acquired al intimately sales momentum. Ducati does not expect retaliation from the low-cost Japanese players as it is subdued positioning itself as a premium manufacturer. However, thither is still possibility of mod entrants or Japanese makers to move into a knock-off seat in which case Ducati will be able to distinguish itself on attributes including high feat, customization, brand bod and the prestigiousness that it has historically enjoyed and is respected for in the industry as well as the global market.Evaluation of global Motorcycle IndustryHonda, Yamaha, Suzuki, Kaw asaki and few of high end premium manufactures that overwhelm BMW, Harley-Davidson, Triumph and Ducati comprised the Global motorcycle Industry. These manufacturers compete in different market segments and select demographics free radicald on different attributes and styles of motorcycles across the product offerings. Our abbreviation of the industry is summarized apply Porters Five Forces analysis (Exhibit 1) Suppliers juvenile trends in the motorcycle manufacturing have been leaning towards kayoedsourcing of most motorcycle components and the companies doing the last(a) assembly in-house. Most manufacturers have octuple choices of component suppliers that they may strike at will. This strategy provides them with high negotiation power, reduced fixed assets, and greater flexibility to meet changing market conditions quickly. However, the companies assume strong allegiance from their suppliers for a quicker crop around, efficiency and quality.Buyers Customers/end users have been categorised into different segments such as knee joint-d cause riders/fast riders, easy riders, hot rods/urban riders, and weekend riders. These riders choose the bike based on cognitive operation, lifestyle, function and comfort. A motorcycle is a highlydifferentiated product that is used for dishonour and has lots of alternatives or competitors, and for this reason buyer power is high. Customers have uncounted of choices ranging from different styles of bikes such as sports, super sports, off-road/dual purpose, cruisers, naked bikes, etcetera to different brands including high end names such as BMW, Harley Davidson, Ducati, and low price options from Honda, Kawasaki, Suzuki, etc. Entry Barriers The motorcycle industry is very trying to enter and compete in due to high capital investments fagged on R&D, well- accomplished relationships with suppliers, and strong brand loyalty and recognition that has been established for decades.Motorcycles are becoming more and m ore technologically advanced, which makes it very catchy for a new entrants to compete on a similar level with let out large amounts of capital and innovative differentiators. Rivals Rivalry between the eight major motorcycle manufacturers can be considered high. The total bend of motorcycle manufacturers has declined dramatically, with that one major manufacturer remaining from the US. These major players are furious competitors and are vying for market share based on the brand, style, attributes, service, and price (especially Japanese companies). As a result of such high competition within the industry, manufacturers constantly need to improve instaurations and functionality. Substitutes Lastly, several substitutes are available if we consider motorcycle tho as a mechanism of transport.However, in many anformer(a)(prenominal) cases, a motorcycle is beyond a mere mode of transport as a curator in the case said, it is a consummate metaphor for twentieth century. Riding m otorcycles provide a unique experience, and it has been a cultural icon as presented in a number of Hollywood movies. In this nose out, threat of substitutes, which may be sports cars and racing cars or another(prenominal) mode of transportation, could be considered fairly low. The following section describes changes in the industry and how that affects Ducati. Industry Changes & Implications on Ducati The industry is advancing at a high pace today due to technological innovations, such as the excogitation of electronic components, advent of CNC and CAD technologies, advances in material science to introduce lighter and stronger composite materials. Superior engine performance combined with debase emissions and fuel consumptions is rapidly changing the feeling of the industry and competition.There is withal a push from the manufacturers to improvecomponents like sophisticated air aided forks, mono shock rear suspension, and front and rear disc brake system to meet the custo mers hunger for better quality as derived from market discern results and customer feedbacks. These technological changes and quality improvements are positive for Ducati who is abreast on its technological innovation and performance. Advanced engineering and state of the art engineering have always been Ducatis strengths, as evident by the number of World Superbike Championships won by Ducati between 1990 and 2000 (8 victories). Lighter materials help Ducati to endlessly improve its already superior performance and retain its position in the sports segment where it already has a stronghold.Additionally, the outsourcing of components and in-house assembly platform of manufacturing manoeuvres in promote of Ducati as most of Ducatis suppliers are concentrated in the Emilian rule a major hub of specialized parts and components suppliers. Ducati typically enters into shortly-term contracts with its suppliers. Effectively, Ducati has enjoyed a strong hold on its supplier base which in turn has made them the most-efficient manufacturer in the industry and this strategy will continue to provide them the flexibility and edge in design and sourcing of new components qualifying forward.Ducatis Current StrategyFrederico Minoli, the CEO of Ducati, had two strategic goals in mind when he took over double digit growth and equaling Harley-Davidsons profit level of EBITDA margin of 20%, which was the highest in the industry. The challenge was irrupt within the company into polarized directions Engineers wanted to continue company culture of high concentrate on on product, and Minoli wanted to appeal to broader spectrum of customers and not just uttermost(a) riders. The following section provides our analysis of Ducatis current strategy using Strategy Diamond method (Exhibit 2). cranial orbits Ducati primarily offered performance bikes in sports and avenue category, which are broadly identified as Hyper-sport, Super-sport, Naked and Sport touring. They face tough c ompetition from Japanese manufacturers such as Honda, Yamaha, Kawasaki and Suzuki, who have captured the king of beastss share of the market.Research shows that a large number of new registrants are categorized under customs and small motorcycle segments with 32.7% and 22.9% market share respectively in 2000 (Case Exhibit 2). Ducati is lagging behindin this segment as far as the market share goes. In regards to geography, Ducati has dissemination through Italy, US, Germany, France, Japan, UK (Case Exhibit 14). Ducati currently attracts and retains young male knee down riders and racing aficionados who associate Ducati with extreme performance and functionality, and recently there has been an increase in women customers (who comprise of 8% of their Monster line their most popular shape). This could be a growing segment that Ducati has not moreover considered. Lastly, Ducatis products are in the sports niche 41% to 54% of its customers own large bikes greater than 500cc. It gradu ally entered in sport touring category to portion out older customer base and also entered into accessionories and apparel business by acquiring Gio.Ca.Moto which produces line of accessories for Ducati.No lastheless, Ducatis limited sports in 1999 were icing on Ducatis portfolio. Vehicles Ducati has excellent engineers and designers who themselves are fanatics of the motorcycle- they are purist knee down riders, and have strong beliefs in speed, performance, and passion for races. Ducati invested a large proportion of their receipts in designing new technology, development of products and human resource management. Ducatis core strengths including the Desmodromic valve distribution system and the technical superiority of its engines, and their collaboration with other firms such as Lamborghini and Ferrari fueled Ducatis growth. Ducati advertises through specialized magazines and focus on the Italian style, account statement, young riders, and a sporty attitude.Ducati.com websi te used the internet as a vehicle, and interchange 500 units of a limited edition in 31 minutes and 2,000 units in 10 days at different times, educated customers, and created awareness most its brand, this has been a real win for Ducati. Differentiators Ducatis goal was to improve average quality of dealers and increase competence sales force unlike Japanese manufactures who utilized multi-franchise retailers to sell multiple brands with less specialized knowledge of products. Secondly unlike their competitors, they established Ducati clubs around 400 which allowed members to live at racing events and get inside access to teams. Ducati also participated in social events and museum tours that has helped Ducati disseminate information to the highest degree its history and brand which increased customer loyalty and helped acquire new ones.Ducati is nous in the right direction but is still far from Minolis vision to enable and foster dealersto connect with clubs more easily. Stag ing Minoli strategized Ducati to turn into a powerful brand and would move away from just competing with Japanese brands. Ducati decided to build museum instead of fixing the raining roof and thats one key factor in create the brand image of Ducati and sending the right signal to employees and customers. It then identifies the 5 core attributes that Ducati signifies technologically advanced engine, tubular trestle build, Italian style and its unique engine sound. Ducati was able to reduce the time to market effort for all its new products utilizing their interrogation centers muscle. Another important decision Minoli took was entering into accessories and apparel producing business.This created the world of Ducati a very successful initiative to build on Ducati brand and sanction its customer loyalty. Economic logical system Ducati is a premium brand that consumers send word and regard highly. The brand image and legacy allows Ducati to keep prices high and accordingly reap h igh profit margins on its motorbikes, accessories, apparel, etc. Ducati motorbike prices can max out at $21,895 compared to $14,350 for Harley Davidson, $9,500 for Triumph, and $9,300 for Honda. Also, its limited edition bikes were sold at world-wide price of E26,000 that made Ducati reap huge profit margins. Ducatis own marketing and distribution process and exploiting power of internet (Ducati.com) helped it retain most of its profit and have higher margins and they controlled their production costs by standardizing components, (eg only two crank case and 3 cylinder designs)..Recommendations and Specific ActionsArena We recommend Ducati to design and launch a custom sports-cruiser bike targeting sports bike fans, who would prefer the riding comfort, style, and customization of a cruiser. This new product is essentially a fast motorbike that has a sports engine morphed into cruiser style chassis. We also recommend offering customization services to suit the style and needs of our single(a) customers. This will be introduced initially in Europe and eventually in the US and Asia. Europe is the market where Ducati has experience, design expertise, preferred supplier base, propinquity to racing arenas, and association with other world-renowned sporting car companies like Maserati and Lamborghini. Hence, building a strong foundation in Europe first provides the proceeds that is very hard to imitate by others.Ourtarget segment is riders in the age group of 30-50 who like the comfort and the style of a cruiser, and yet prefer the power, speed, and especially the handling that is synonymous to a sports bike. Additionally, there is sideline in customization especially for cruiser segment that we would like to exploit and offer as an added benefit to our customers. Furthermore, we will leverage light-weight design components (magnesium alloy frame, nose candy fiber luggage compartment and parts) to provide the performance edge needed in a sports bike. This will a ttract young riders as well as women, who typically prefer lightweight bikes. Vehicle Initial launch will focus on current Ducati owned stores. This will help us gauge customers response provide early feedback from Ducati loyalists, as well as opportunity to attract customers using word-of-mouth advertising. Based on the feedback and acquire from this rollout, we would be able to identify other possible locations to open new stores (combination of company owned and single-franchise dealers), operateing from Italy, and then expanding out into the European sub-continent.We do not plan to open any new stores immediately, until the market picks up and demand is more than 25% of animated sales. The assumption is that any increase within 25% of sales volume can be managed via the existing stores. Any franchising will be done through single-franchise dealerships so as to maintain more control and emphasize quality. As a semipermanent plan, we also would like to add 10 new Ducati owned s tores rent at strategically important cities around Europe, which would cost us E10M (E200K/year) over 5 years , and another E5M for maintenance (design, upkeep, staffing, taxes etc.) Differentiators Customers comfort Ducati for its brand, high performance engines, strong association with racing, Italian style, and the unique sound of its engine, among other things. We retrieve that our strategy will help maintain our core competencies and resources intact, while allowing us to expand into newer space as well.The customization services that we also plan to offer along with our product will be a value-add service to Ducati loyalists, which can be priced at a premium. These customization services include different body styles, paint schemes, accessories etc., which will benefit from the availability of the large pool of supplier base that we have local access to. This large and varied supplier base also provides Ducati with buying power and quick turn-around time of new designs. Ad vertising expenditure for Ducati comes to aboutthree times that of Harley in the year 2000 alone. About 14.5% of gross revenue is being spent on advertising, marketing and sales effort, close to about what we get in return as our net income. We do not plan to cut down on advertising and marketing but will have to come up creative, more cost effective ways to get our message out there to reach a broader spectrum of customers like Minoli envisioned.Using channels such as word-of-mouth, social-media, YouTube videos, collaboration with sports bike bloggers, commentators, and also investing and expanding Ducati fan/owners clubs are ways we can leverage cost-effective marketing techniques. Economic Logic Our R&D team (including HPE) already has several high-end performance engines that can be utilized in designing such a bike, so we feel our major R&D expenses will be towards the design of the frame and body components. This will reduce our overall R&D spend, as compared to a full blown redesign/production of a new engine technology. Furthermore, we only need about E2M for R&D expenses E5M for CAPEX, leaving the remaining E12M for advertising. This CAPEX budget covers the additional manufacturing capacity as well as assembly line expenses. We plan to leverage the existing earnings of suppliers by continuing to outsource.We forecast a sale of 3,300 bikes to be sold in the first year after launch (initially Europe only), priced at E12,000 ($16,200 per unit), see Exhibit 3, which is 2% of the worldwide cruiser/custom motorbike market, where Harley is the leader. Ducati was able to sell about 3,500 units of its sports touring after launch, so we think that we should be able to meet this forecast of 3,300 for the new sports-cruiser hybrid. Thereafter, we project a 10% growth in sales in the 2nd year, and thereafter about 15% growth in the 3rd, 4th and 5th year. We are presume that the life-span of a design is typically for 5 years thereafter, this design/model would b e retired or bring obsolete. We would price the bike at about E12,000 so that it is not seen to be a cheap bike, while at the same time making sure it is not too valuable for Ducati fans to buy. At a discount rate of about 8% and an initial investment of E17M to launch the product in Europe, we anticipate a net return on investments of about E16.8M in 5 years.Major inbred and External RisksCurrently, there is no market research available that shows a segment in Europe and US who would like to have a hybrid cruiser that drives as asports bike. The retail chain and distribution channels available in Europe and the US are possibly more familiar with Harley-Davidson dominating the cruiser segment, and the Japanese players competing in twain the cruiser and the sports segment in Europe. Ducati is a world renowned Italian sports bike brand and although we are positive that we will have big success in carving out a sizable market segment with this new product we plan to launch, there is always a risk in leaving after a new market segment, especially a niche segment. Significant capital would have to be invested to arrange ad campaigns, events, retail chains to raise awareness, all beforehand a dime is earned. Internal Risks Ducatis expertise lies in the sports bike arena, and it has never offered a cruiser style motorbike.The needs of this customer segment are definitely different than the sports bike segment, and it is possible that Ducati could run short on delivering a product that meets the needs of the segment itis targeting. Ducati may not necessarily have the skills or the expertise to provide this sort of value to its customers. Translating and adapting its core skill-set to a different model type to develop a product more aligned with the cruiser model is not going to be easy. Also, this move could upset hard-core Ducati fans, who would not want Ducati to be associated to anything other than sport bikes. Ducati could possibly risk losing their loyal fan base, if it were to modify into bike-variants other than sports. Diversifying too far from what Ducati is known for also puts the reputation and prestige of the company and its engineers who have become respected and well-known in the industry for making high quality performance bikes.The technical excellence and performance that Ducati is so well-known for around the world could well be seen to become diluted by moving into a cruiser bike segment which historically has been associated with a different demographic segment altogether. Yet, by cautiously positioning this new product to be a sports bike at its core and by re-establishing our commitment to producing high-quality performance bikes that we have come to be known for, we could potentially re-assure our current fans. External Risks Harley Davidson has dominated the custom cruiser segment for years with a very loyal fan base and supplier chain. Ducatis entrance in this segment will be seen as an aggressive move by Harley , and Ducati must be disposed(p) for some backlash. Harley has a strong network of suppliers, and distribution channels in theUS, and has set high entry barriers for Ducati in the US market. Ducatis suppliers are primarily located in Bologna, and hence Ducati has enjoyed the benefit of being in close proximity to a large pool of supplier base and component manufacturers. Going with sports cruiser hybrid could mean that Ducati may need to establish relationships with a whole new set of suppliers based out of the US.US suppliers might not necessarily have a sense of the Italian style, a core value that the product provides. Therefore, we do not plan to enter the US market just yet, thereby preventing getting ourselves into a face-face with Harley. Once we build some credibility with customers in Europe, where we have a strong supplier base, and a decent distribution channel, we could potentially launch in the US in 2-3 years time frame based on the success of this launch. European ma rkets have been dominated by Japanese players in sales volume, and entering the market could prompt them to bring out a competing product of their own, which could eat into the market share that Ducati is hoping to take over with this hybrid.If Ducati does not differentiate its product and service offerings enough, there is a risk of being dragged into a price war with the Japanese. However, this is the arena where Ducati shines and has made its name- vivid performance, exquisite design, and the racing dominance. By strategically positioning our product for a whole new segment of customers Ducati can protect itself from appearing to start a war. By providing additional customization services, which would be charged at a high premium, we separate ourselves by going after an audience who is not a typical low-cost Japanese bike buyer. BMW successfully launched and delineate its own cruiser and so can DucatiExhibit 3 intercommunicate SalesYearUnit Sales GrowthUnits Sold wrong/Unit ( in Euros)Total RevenueEBITDA0-17,000,00013,30012,00039,600,0006,930,000210%3,63012,00043,560,0007,623,000315%4,17512,00050,094,0008,766,450415%4,80112,00057,608,10010,081,418515%5,52112,00066,249,31511,593,630NPV16,862,800

Marco Polo Worships the Great Khan

Traveling from Cathay to Tinju, there is non a hotshot page in The Travels of Marco Polo where he does not mention the great(p) caravansary. Whether this is a positive or a negative, the agent of the Great Khan is routinely emphasized and the leader is repeatedly discussed in terms of his ability as a ruler. . A bully deal of the reason for this is that when one looks at a unalike culture and its biography, there is a tacit avoidance of providing judgment on the way the militarism of a culture may deliver itself. Through his travels in China, Marco Polo depicts the Great Khan as a powerful, benevolent, and pushy leader of East Asia.It is easy to see that the Great Khan had great power throughout nearly of China. In chapter 4 of The Travels, Polo describes various visits to divers(prenominal) locations in northern and southwestern China. He states ingestly that Tibet belongs to the Great Khan, as do on the whole the other kingdoms and provinces and regions described in th is book, ask out alone the provinces mentioned at the beginning of our book which belong to the son of Arghun (174).In chapter 5, all places that Polo visits do the Great Khans musical composition currency and the throng remain subjects of the Great Khan. In his description of the journey from Ho-Kein-fu through Kein-ning-fu, the radical that stands out is that people are idolaters, subjects to the Great Khan and using paper money because such a brief and generalized statement provides solid insight into the overriding themes of the Great Khans motivations. (211).However, in different areas under Khans rule, a unique monetary governing body was used. For example, Kaindu had real unique hard currency They have gold in bars and weight it out by saggi and it is valued according to its weight. scarcely they have no coined money bearing a stamp (176).Ironically, in some instances, salt was used as short change currency. Traders in Tibet made an immense profit, because they coul d use the salt in food as well as for buying the necessities of life. In the cities they used fragments of salt blocks in cooking and spent the unbroken blocks.However, regardless of the f flake that Kaindu did not use the Great Khans money, the Great Khans cast remained strongly evident within these providences. Kaindu was subject to the Great Khan and it was in an area known to have an abundance of pearls. Regardless the Great Khan would not let bothone harvest pearls because he believed harvesting too umteen pearls would eliminate their scarcity and lead to a significant devaluation.Thus, The Great Khan, when he has a mind, has pearls taken from it for his own use only but no one else may take them on pain of death (175) there was similarly a mountain there with a plentiful append of turquoise which produced rattling fine gems but the Great Khan would not allow them to be taken except at his bidding. This would seem to prognosticate that the Great Khans brash exterior hid a very insecure interior. That is, he seemed to desire wealth and treasure as a way of propping up his own picture. Allowing greater access to wealth and cunning metals was, perhaps, something the Great Khan feared because it would chip away at his loftiness. (175).Marco Polo also conveys the notion that the Great Khan maintained a sense of almsgiving that tempered his displays of power. In particular, Polos story about Litan emphasizes this benevolence. Tandinfu was a very large city and once a great kingdom, but the Great Khan had conquered it through force of arms. In 1272, the Great Khan had constitute one of his barons, Litan Sangon, to hold this city and province. However, Litan planned a monstrous act of disloyalty when he and his followers rebelled against the Great Khan in a arresting display of disobedience. When the Great Khan ascertained this, he sent his militia to confront them.When Litan was defeated, the Great Khan pardoned those who served under Litan forgave them for their trespasses and indiscretions. Those who were pardoned never afterward displaced any disloyalty towards their great leader. This story reflects the Great Khans benevolence because, strange other leaders who would respond ruthlessly to opposition, The Great Khan quite made them into the most loyal subjects by bestowing a pardon to them.It is clear the Kubilai Khan was exceptionally ambitious and this is what made him so powerful and vie a great part in allowing him to conquer most of Asia. Polos description of the conquest of Manzi evokes the ambitiousness of the Great Khan. After conquering some cities and countries, Kubilai was still not satisfied and continued the expansion of his territory.He essay to conquer the great province of Manzi, a wealthy territory. The king of Manzi had discovered through astrology that he could not lose his kingdom except at the hands of a man with a hundred eyes. In response, Bayan Chincsan, known as Bayan Hundred-eyes, was sent in to Manzi by order of the Great Khan. Bayan succeeded and Kubilai in the end conquered Manzi. This clearly demonstrates the Great Khans desire to expand his power base from all fronts. Perhaps, in a way, it depicts over ambition as foreign to logistical, military expansion. Ultimately, this type of imperialism would later lead to Khans eventually overextension and downfall.From Marco Polos descriptions of the influence of the Great Khan throughout most of China, it appears that he was a powerful sovereign whose impression on history still resonates to this very day. However, Marco Polos presentation of the Great Khan drafts an image of the Great Khan as the only leader who could rule and overtop the world Although Marco Polos explanation that many cities he visited were ruled by the Great Khan is true, to the reader it seems like he venerated Kubilai Khan above all others. Perhaps Marco Polo was in such awe of Khan, he want to see him as a great leader as opposed to a destructiv e, predatory imperialist and from this, an idealized version of history was cr

Book to Movie Comparison

The Beowulf novel has endured for centuries, having been retold time and time again. Dating back to the 8th century, this epic heroical poem employs many features that have long appealed to countless storytellers, authors, graphic novelists, and filmmakers. In Robert Zemeckiss film Beowulf, modern engineering science allows a centuries-old story to be retold in a vivid, dynamic way. Still, in this day and age, it would be to the highest degree impossible to translate a literal translation of the poem to the hiding without making certain changes. Zemeckiss film is no various. Some of these changes ar obvious, while others remain curious diversions from the text.Whatever the case, each new retelling of Beowulf says as much about the time when it was created as it does about the narrative aspects that have survived passim the centuries. Zemeckis, who has done similar experiments with computer-generated storytelling in his film The Polar Express, apparently believes that Beowulf is beneficial for a contemporary facelift. While the actors and action are all live, the technology is not the only delicateg that is advanced. The story has been updated as well, keeping near aspects intact while all in all rewriting others.The film retains the complex family lineages and historical contexts that root the poem in reality. It likewise keeps most of the main characters (Beowulf, queen mole rat Hrothgar, Grendel, Grendels drive) but explains their motivations in ways the poem did not. One of the major(ip) differences between the film and the original poem is the treatment of Grendel and Grendels mother when Beowulf kills Grendel, the monster is reduced to a sniveling, frightened child. It is also worth noting that Beowulf fights Grendel in the nude, which is not described in the poem.The comparisons between Grendel and the Biblical Cain are completely thrown out as well, making Grendel much of a misapprehend Frankensteins monster than a true monster, ugly i nside and out. The fifty-year disturbance between Beowulf visiting Grendels mothers cave is also depicted in the film, whereas it is only alluded to in the poem. This allows the filmmakers to expand the poem into a feature-length film, in order to fill in the gaps with what they imagined occurred. This calls into question if Beowulf, who tells his story in the poem, is actually telling the truth.His relationship with Grendels mother is far different than in the story, wherein she is simply slain. Grendels mother is drawn as a strangely beautiful woman (Angelina Jolie) who seduces Beowulf. This change, like the others, is played for entertainment purposes. desire Beowulfs physique, Grendels mother is his equal in physical cast and advertising value. The film also makes a curious playition in that Hrothgar is the father of Grendel and Beowulf is the father of the dragon, which make sense in a Hollywood sort of way, but do not add anything new or powerful back to the original poem. These additions are simply to give characters more motivation, though it is difficult to say whether they gain any new depth. or so mentions of God and allusions to Biblical characters have been stripped away, despite the kingdom of Beowulf become Christian. It is as though Zemeckis has tried to make Beowulf as un-literary as possible. He has turned an epic poem into a comic book adventure. In many ways, the poem almost becomes secondary to the spectacle. Zemeckis desperately wants to render the humans of Beowulf into one that fans of Lord of the Rings can identify with.The becomes more a springboard for special effects. The poems narrative is stretched so thin that it is impossible not to add to the original story, though the changes never add anything that matters. The story is sometimes as hollow and empty as the animated characters it is all superficial. Beowulf never celebrates the poem as being truly considerable and proves that films can never been grander than their sour ce material. Works Cited Beowulf. Dir. Robert Zemeckis. Perf. Ray Winstone, Anthony Hopkins, Angelina Jolie. Paramount, 2007. Heaney, Seamus. Beowulf A brisk Verse Translation. New York W. W. Norton & Co. , 2001.

How Does Stevenson Engage His Readers? Essay

In Dr Jekyll and Mr Hyde Stevenson intakes many behaviors of engaging his subscriber throughout the novel. He applies these methods in this way to keep the reader kindle in the moderate.To start off with, Stevenson uses Narrative Methods. These methods add to the disbelief and turn out the emotional impact. One use of narrative methods is the fact he sort outs the score from several perspectives. One chapter of the book is circle out as a type of police report with the maidservant recalling what happened the night that Danvers was murdered. The way you jakes tell it is a report of some kind is because of the extra bits of cultivation added (as the maid described it) (page 47, controversy 2). This chapter, apart from giving you a distinct view of events, makes the readers realise that this man was an important figure in nightspot and this story has gone from a mystery story (with the mystery creation the nightmare Enfield had, the door and the strange man named Hyde) to a murder-mystery story as this instant there is a killer on the disembarrass.This will keep the story a frightening twist for the readers that the use of the phraseology makes them keep practice session crabbyly as it Hyde is revealed to be the killer in chapter 4. This twist gives the readers momentum to keep reading as they put one across already learnt that Hyde has no conscience really and has an inhuman side which can flick at any moment making him all the more redoubted precisely making the story all the more exciting And thusly all of a sudden he broke out in a great flame of anger, stamping with his foot, brandishing the cane, and carrying on like a harum-scarum (page 46-47).This jockstraps as all of the Narrators (bar the maidservant) were all reliable figures in society and transparent characters who neer dream of lying. Mr Utterson Mr Utterson the lawyer was a man of rugged countenance, that was never lighted by a smile (Page 29 line 1), this explains he did non have a sense of humour and would not hoax a lash out but tell the story as it is. This will help keep the reader interested as if it was a story told by a tramp then the Victorians would never have believed it as they have no reason to be truthful whereas Utterson is a lawyer and was well up respected so theres every reason to effrontery him. Stevenson introduces him as a calm, gentle man, who just wants to lead a ease animateness (making him all the more believable) He was austere with himself drank gin when he was alone (Page 29 line 9.) This sentence is very important as well as it tells the reader that he is very strict with himself and sets himself boundaries.What in addition attracts the readers attention is they conjecture that the story has finished chronologically at the quit of chapter 8. The Victorians didnt like mystery stories finishing with tease apart ends not tied up, so he leads on to the two real documents by saying They trudged back to his office to read the two narratives in which this mystery was now to be explained. This ends the chapter on a cliffhanger, therefore adding to the suspense and inviting the reader to get involved with the conclusion of the mystery.Stevenson do sure not to reveal that that Hyde was Jekyll until the end when the story was over, although he had left clues Hydes and Jekylls writing was similar. Also in chapter 8 when they find that Hyde was wearing big c visual modalityhes that looked suspiciously like Jekylls and he infact does pretend to be Jekyll. Chapters 9 and 10 give the story a sense of genuineness as they are real documents. In chapter 9 Utterson receives a garner that was meant for Lanyon from Jekyll. There is a sense of urgency active the letter I had already pestleed this up when a fresh terror infatuated my mind (Page 75 line 29). This shows he wasnt persuasion clear and he was rushed, leaving the audience to think why? And therefore reading on.Chapter 10 is a full s ummary of the book. It ties up all the loose ends as it is a letter from Jekyll himself summarising all the events that have taken place. This particular chapter uses a lot of emotional sentences from Jekyll Under the strain of this continually imminent doom and by the sleeplessness to which I now condemned myself (Page 95 line 13-14) and overly A mist dispersed i saw my life to be forfeit. This tells how Jekyll feels he has nowhere to go in life and feels despondent.He recalls all of Hydes action and how he enjoyed the leaping pulses and secret pleasures but how he knew admits Hyde was sadistic and mental No man morally fair could have been guilty of that crime. This is because it was a stupid thing from Hydes point of view as know he is a valued man and cannot roam the streets freely anymore To be tempted, however slightly, was to die out. Jekyll starts to think self-destructions the only way to stop the maniacal Hyde and when I know he fears my power to cut him off by sui cide (Page 96 line 15-16), as he has terrors of the scaffold.The stick up page of the book is the most emotional and well-written page of the whole book as Jekyll writes his wonderful selfishness but also ape-like spite. There he turned some con about Hyde into a pro but also made a con seem more than a con. This will tell the reader how emotionally attached to Hyde, Jekyll really was and how this ending was probably the hardest he has had to make in his life.The last few lines Jekyll has made up his decision in the sense he has gone from contemplating suicide to being definite And indeed the doom that is closing on us two (Page 96 line 6-7). Stevenson also makes you feel sorry for Jekyll I know how i shall sit shuddering and weeping in my chair, or continue with the most strained and fearstruck ecstasy of listening, to pace up and discomfit this room (my last earthly refuge) (Page 96 line 11-13). That quote makes you think its taking every bit of strength to make these decisi ons and to do the simplest tasks and by this stage the readers eyes are glued to the page.The ending is a cliffhanger, in the sense you do not know anyone elses reactions to Jekylls confession. It ends Here, then as i lay down the pen, and proceed to seal up my confession, i bring to life of that unhappy Henry Jekyll to an end. That line tells you that he will kill himself but does not tell you how the others react which the readers will put the book down and think about it in shock due to the confession but also thinking about it some more.My penultimate method is the setting that Stevenson used. He brought the evil-minded immediately into the readers lives due to the fact he bear ons to capital of the United Kingdom which was the most obtusely populated place in the UK. He also used pose class and well respected gentlemen which told the readers that not all battalion were accurate and not all the well off led boring lives. Stevenson uses pass as a month where bad things ha ppen as both the murder of Danvers and the girl getting trampled was in Winter late at night.He uses to points of views a characteristic and a psychological point of view. diagnostic Mr Hydes resides in Soho which was a pocket of poverty and crime whereas Hyde lived in the West End (represents Hyde/Jekyll relationship)Also the respectable view of the entrance to Jekylls house to the back door which Hyde uses (represents two sides of the character)Psychological The misty, dreary London seems to echo the unsettled mood of the characters and the dark mystery of the story The foursquare when they got there was full of wind and dust, and the thin tress in the tend were lashing themselves along the railing (Page 63 line 17-20).These settings help to set the scene and add the tension as they usually involve a cold, windy night which makes a chill run down the irritant therefore wanting the reader to know more.My final method is the way Stevenson has used morals and the likes of the V ictorian people in his favour. He has effrontery us the moral you can never trust appearances, as appeal Dr. Henry Jekyll led this duel life with the bloodthirsty Mr Hyde. that also dont let anything control you I am now finishing this statement under the influence of the last of my old powders. He is reliant on a source which has driven him to suicide.It is also insincere as its saying if we repress our dark side, it will reach stronger. This is true as Jekyll said of not changing to Hyde for two months But time began at last to obliterate the freshness of my alarm, I formerly again compound and swallowed the transforming draught.Stevenson also included a lot more questions than there were answers. The Victorians enjoyed this as although the main loose ends tied up they had a feeling of authority as they got to decide some of the outcomes. As the Victorians found literature as a type of escapism where they could hop out from their boring, old lives Dr Jekyll and Mr Hyde w as the perfect novel which fitted all the criteria of a good, mystery/ abomination book that the Victorians could escape to and therefore engage themIn conclusion to the question, How Does Stevenson function His Readers, I think he engages them by using all these antithetical methods narrative, setting, and what the people in the era it was written liked. I think he engaged the Victorians though particularly on the latter as they had something to relate to e.g. Soho a lot lower middle class people lived round there who would buy this book and therefore read it to the end as it is of particular interest to them. This is the same for all of London though. For most people though this story kept them engaged by the excellent descriptions, the use of emotions and the suspense involved. Once a murder had taken place no one was ever going to put the book down

The Management of Emotions

Managing emotions adequately is vitally important in practically every(prenominal) atomic number 18a of live. Children learn this skill first from the example of their pargonnts. These skills are transferred to society as the child grows and broadens his or her connections with the outside world. Emotional trouble skills become increasingly important as the compassionate being moves through life.In the workplace, both double-deckers and employees expect to adequately manage their emotions in articulate to successfully accomplish their diverse tasks. In personal life, ruttish heed is important in the home in order to raise healthy, match individuals who will in their exercise function well in the workplace. Emotions are an integral part of humanity. The management of emotions is therefore a task that faces every person in every stage of life daily.It is unfortunate that turned on(p) management is not a topic consciously dealt with at both the home or learning institut ions. The forget of strong, badly managed emotions is often conflict, fit in to the Conflict Research Consortium (1998). Emotional and conflict management are closely connected. Once the conflicting parties realize this, it is easier to focus on the locomote necessary towards a resolution of the conflict.There are many professionals whirl advice on adequately managing emotions. The Conflict Research Consortium for example focuses its advice on the issue of emotions and conflict. Conflict is more easily resolved, according to this premise, when the emotions tough are explored and understood. Once each party understands the others emotions, the issue of conflict becomes simpler and indeed could be eradicated entirely. This is especially so in personal relationships. Parties involved in sentimentalist or family relationships will most often benefit from exploring the emotion involved in conflict.Emotions are also frequently both the cause and result of interpersonal relationships in the workplace. The emphasis on increasing profits and remain at the top of the business world can cause ingrained punctuate for managers. This stress, if not adequately managed, often find an outlet in inadequately managed emotions. Employees suffer as a result and in turn are the victim of emotional outbursts and conflicts. Hence, the initial cause of badly managed emotions is stress.In workplace relationships, emotional management should therefore be integrated with some(prenominal) other elements to understand the inherent cause-and-effect relationships in each individual case. Ironically, emotional outbursts resulting from profit-related stress has exactly the opposite of the desired effect. According to Gerson (2002), a manager who makes a habit of berating and shouting at employees is un likely to see a favorable profit margin. Gerson therefore recommends that a program be implemented to handle work-related stress and its concomitant emotions.Emotions are part of hum an life. So is change. The ingrained and rapid changes in the world today adds to stress both in business and in general life. This increases the danger of emotions that lucid in unacceptable ways. In extreme cases, the failure to recognize the need for managing emotions may lead to crimes such as rape or crimson murder. This makes it clear that emotional management in todays fast-changing world has become of extreme importance.Learning to adequately handle emotions should first and consciously be taught at home and afterwards in learning institutions. This would benefit not altogether business, but also personal relationships and general society. In terms of business, employees who feel they are valued will perform better, work harder and create the taxation sought by managers. Managers therefore need to handle their emotions adequately to happen upon this, as seen above. Children who never learn to manage their emotions are more likely to engage in criminal activities. Socie ty benefits more greatly from stable, cultivable individuals. In order to achieve this, emotional management is of greatest conditional relation in early home life and education.

Productive and Counterproductive Behavior Paper

Productive and harmful Behaviors Paper * * University of Phoenix * Instructor Julie Wilson * November 14, 2010 * * * * * * * * * * * * Productive and harmful Behaviors Paper * Organizations attempt to achieve one main goal and that is to be productive. No crease wants to go under or stay in the same range year after year not growing. One does not bind to really know the definition of productive and harmful because the word its self say plenty. To me, productive bearing says achieve goals and completing tasks. Counterproductive says good the opposite.This paper ordain analyze the relationship between productive and harmful port in constitutions. The paper volition define productive and harmful manner describe the impact that productive and counterproductive airs have on the trading performance and the overall performance of an organization. I will in addition recommend strategies to append productive behavior and decrease counterproductive behavior in organization s. * Productive behavior is defined as employee behavior that contributes positively to the goals and objectives of the organization (Jex & Britt, 2008).Productive behavior is the lawsuit of behavior secure just about every organization wants to have in their employees. Productive behavior types ar those who want to achieve tasks and diddle great with the other employees to achieve those tasks. Counterproductive behavior hatful be defined as a type of behavior that goes against the organization in achieving goals. Example of counterproductive behavior is new for urinate, procrastination on assignments, and not returning on time for breaks so that some one else can take theirs. Productive behavior and counterproductive behavior relate to each other because they involve people. Productive behavior is most likely to have a positive impact on an organization. Productive behavior type employees tend to complete more tasks in shorter time or meet the deadline proposed by instr uction. Productive behavior sees the organization in accomplishing goals. The organization performance for productive employees will show in maybe revenue. In an organization, counterproductive behavior has a negative impact. The job performance from an employee who has counterproductive behavior shows up poorly in evaluation, tasks, and in revenue.The impact counterproductive behavior has on the organization can affect the organization. A company loses money to pay employee who does no work on the clock. A counterproductive employee can turn productive employees into counterproductive employee because of their lack of motivation some might be influenced easily. * There be umpteen strategies management to increase productive behavior and decrease counterproductive behavior. To increase productive behavior management can reward those employees for their job performance. This will help keep up the motivation for productive employees.By offering incentives, employees will be quicke r to complete tasks in an overall productive and in force(p) manner. To decrease counterproductive behavior, management needs to look at the employees they can help and those who are not up for change. The best solution is just to terminate the employee who is not up for change, so that this behavior does not fix contagious. A proficient way to minimize the amount of counterproductive behavior is to make sure that employees understand that there are penalties for nonproductive behavior in an organization.By allowing employees to comprehend the negative effects of counterproductive behavior, an organization is fashioning the fact that a counterproductive behavior is unacceptable sensitive to the intact employee staff. This should make employees who normally exemplify counterproductive behavior more aware of the negative effect they are having on the organization and that there are consequences for their negativity. * In conclusion, most organizations have two types of behaviors. The types of behaviors are productive and counterproductive behavior.The two types of behaviors are noticeable in the workplace. The one working, come into work on time, first to arrive last to leave, and excited about work is the employee exemplifying productive behavior. In order for an organization to be successful, management has to choose which behavior to uphold in the work place.References Jex, S. M. , & Britt, T. W. (2008) organizational Psychology. A Scientist-Practitioner Approach (2nd ed. ). John Wiley & Sons. * * . * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Medea Monologue Evaluation

The monologue I was given was an extract from the play Medea. I played Medea. My director (Mark) and I started with a read-through of the account book, even from the first read-through we refractory the main theme was that we indispensablenessed to show her need for revenge. We the realised this was from the same(p) play that we watched last year. We used this to come up with that themes indispensable much(prenominal) as her still being in love with Jason. We used units and objectives to the nip into sections. From incompatible sections we got different units, some parts should show a genuinely vulnerable side then others showed anger and love.We realised this was a script needed different levels of emotion and having the ability to stir your emotion genuinely quickly was key. We decided to direction on her unrequited love for her save (Jason) who divorced and betrayed her. Also the anger that she held towards him because of the betrayal needs to be strong. She needed to be quite hard and strong but vulnerable at some points. Once we had cracked the themes and character personality we started do veracious rehearsals. I rehearsed by myself to learn my lines and come up with some ideas on how to perform it.Then in school we tried the different ideas and different ways to say each line changing as we go. I sub-texted each line and brought it in so once again we can beguile what she is really trying to say with each line. This do us change how I said the beginning of the script. We hot-seated with different partners and the question really made me think. It made me want to show that she still loved Jason but hated him too. Our class did an exercise when we had to be stuck in a lift with as our character with other characters. This was eye opening too, safe how much of a strong facade Medea put on to try and mask her feelings.The devise was just a simple chair in the middle of the stage. We wanted simplicity so people could focus on the dialogue. The costume again wasnt complex but purple velvet toga (because she is a classic princess) this was to show her royal roots. The rehearsal with Mr. Borrill was what turned it around because he told me what to focus on, what parts are meant too be strong and what parts are meant to show weakness. It definitely helped me develop how I wanted the audience to enter Medea in the last few days before the execution. The day of the performance arrived.I used emotional memory to get me into the mood just an hour before and I think this really helped in the believability. I think it is one of my best performances I felt like I connected with audience and used my projection well. I had just ample tension filled moments and I used the silence well. My main break is my staging, I shouldve moved around more and that is something we focused on in rehearsal but I think my nerves didnt want me to move. I used props well, when I used it as a symbol of different things such as one represented Jas on. I think it was a very good performance other than the staging. I was proud of myself

The Power of Pen and Executive Compensation

denomination IN concentrate journal of financial political economy 88 (2008) 125 www. elsevier. com/ f apiece(prenominal)/jfec The power of the pen and decision coifr wages$ John E. snappera, Wayne Guaya,A, David F. Larckerb a The Wharton School, University of protoactinium, Philadelphia, PA 19104, regular army b Graduate School of railway line, Stanford University, Stanford, CA 94305, USA Received 28 October 2005 birthd in revised form 20 March 2007 accepted 4 May 2007 Available online 5 celestial latitude 2007 Abstract We project the jamming subroutine in monitoring and in? uencing administrator recompense practice development to a greater ex decennaryt than 11,000 ask obliges nigh chief operating officer wages from 1994 to 2002.Negative advocate reportage is more strongly tie in to trim yrbook feed than to raw annual brook, suggesting a sophisticate approach by the media in selecting chief operating officers to c all in all told e verywhere. Howeve r, blackball insurance reportage is as well as greater for chief operating officers with more cream exercises, suggesting the thrust engages in somewhat donnish degree of sensualness. We ? nd little enjoin that ? rms respond to nixly charged charge up reporting by decreasing surplusage chief operating officer founderment or increasing chief operating officer turnover. r 2007 Elsevier B. V. All rights reserved. JEL classi? cations G32 G34 J33 M41Keywords Press Media Executive wages Corporate government 1. Introduction With the possible exception of major(ip) ac itemizeing frauds (e. g. , WorldCom, Enron, etc. ), in that location be few topics that argon more pervasive and produce voluminous headlines in the business cheer than executive director remunerate. The debate almost executive fee t shoemakers lasts to focalisation on the overall level of hire (e. g. , intercourse to workers in the US or to executives in separate countries), the rate of p lus (e. g. , relative to in? ation or cable price reachs), and the form of wages (e. . , bank line pickaxs). Although on that point is ex ten dollar billsive academic research on the determinants of executive fee, there is little empirical evidence on the comp cardinalnt part of the democratic and business cabal as a potential monitor of executive fabricate (e. g. , count on Zingales, 2000 Bebchuk and Fried, 2004). The objective of our battleground is to abandon shrewdness into collar questions (1) What decision fashion pretense does the media subprogram to select chief executive of? cers ( chief executive officers) for reporting just closely their pay, (2) What determines the proportion of that coverage that is disconfirming- shadowinessd, and (3) Do ? ms and managers ? nd this upkeep $ We thank Greg miller, seminar participants at Stanford University, and an anonymous referee for their helpful comments. We likewise thank Jihae Wee for excellent resea rch support, and appreciate ? nancial support from the Wharton School of the University of Pennsylvania and the Graduate School of Business at Stanford University. ACorresponding author. E-mail speak emailprotected upenn. edu (W. Guay). 0304-405X/$ define front matter r 2007 Elsevier B. V. All rights reserved. doi10. 1016/j. j? neco. 2007. 05. 001 word IN PRESS 2 J. E. load et al. / Journal of pecuniary Economics 88 (2008) 125 suf? ciently costly that they respond by fashioning changes to their allowance or employment practices? Empirical evidence on these research questions furnishs insight into the role of the foreshorten in monitoring and in? uencing executive wages practice. We examine a skilful-grown adjudicate of ExecuComp chief operating officers and an extensive collection of more than 11,000 conspire articles round chief operating officer earnings from 1994 to 2002. Using an iterative attain word search procedure, we partition the straighten out articles b ased on whether they bring on a proscribe olfactory property.Thus, for each chief operating officer, in each division, we obtain a app salary increase of the sum of hire articles and the fraction of these articles with a disconfirming chant. We hold this info to provide evidence on the press decision fabric and on the effect of press coverage on ? rms actions. Not surprisingly, the press chooses to cover chief executive officers with high summation annual present. We similarly ? nd that in deciding which chief executive officers to cover, the press does non appear to discriminate between chief operating officers that rule high expect turn over back versus chief operating officers that receive high superabundance succumb, where excess birth is the residual from an evaluate allowance model that controls for standard economical determinants.Further, chief executive officers at elephantine ? rms and ? rms with deplorable operating deed atomic play 18 wi thal more probably to be selected for coverage. Conditional on the press deciding to cover a CEOs pay, we ? nd that ostracizely charged coverage is more strongly related to posters of excess substance annual pay than to raw supply annual pay. We interpret this result as evidence that the press ingestions a relatively sophisticated approach when writing ostracise articles astir(predicate) CEO wages. On the an early(a)(prenominal) hand, we as well as ? nd that disconfirming coverage is related to the CEOs paying back from plectron exercises. This latter ? ding is un contrastiveiated with Holmstrom and Ka computer programmes (2003) concern that unitary of the reasons the press portrays executive pay as a runaway train is that it misinterprets the payoff from exercised preferences as being a comp unmatchablent of annual pay. In fact, the grant realize take account of survivals, not the payoff at exercise, is widely considered the more beguile whole step of pick axe pay. 1 We ? nd little support for the hypothesis that the press serves as a catalyst or change agent for CEO remuneration practices. Speci? cally, there is no coherent evidence that fundamental fee decreases later CEOs receive minus press coverage, and we ? d no evidence that controvertly charged press coverage of CEO compensation is related to CEO turnover. Thus, our results do not corroborate recent evidence that the media exerts an important in? uence on corporate government choices (e. g. , Dyck and Zingales, 2002, 2004 Louis, Joe, and Robinson, 2004). The rebrinyder of the paper consists of quadruplet sections. Section 2 provides a literature re get and develops our research questions. Section 3 describes the sample selection and summent choices. The results ar presented in Section 4, and summary conclusions argon provided in Section 5. 2. Background and research questions . 1. Determinants of media functioning close CEO compensation Although there is consi derable demonstrateion or so the role of divine revelation and transparency in monitoring managerial behavior, the precise mechanisms for disclosing and disseminating nurture lose received limited attention in the academic literature (Zingales, 2000). Dyck and Zingales (2002) con slope that this limited attention stems from the small role that the diffusion of training plays in agency models. 2 They argue that the media is one vehicle through which development is aggregated and credibly communicated to the humans (and across ? ms). Thus, the media bottom of the inning play a certain role in reduction the be of contracting parties for collect and evaluating information, and in shaping the reputation of contracting parties. In order to provide insight into these questions, it is necessary to identify the objective function of the media. As suggested by Jensen (1979), the approach to modeling the media industry is similar to whatever industry and begins with analyzing the lease faced by pertlys producers (e. g. , newspapers, magazines, etc. ) and the 1 It is possible that the press justi? bly writes electro damaging articles nearly CEOs with Brobdingnagian realized option payoffs if the magnitude of option exercises re? ects a cadence of cumulative excess compensation over a period of time. 2 In the accounting literature, diffusion of information plays a large role in research on the type of accounting information give away by management to its shareholders, or in theoretical agency models incorporating channels of communication. However, there is little work on intermediaries, such as the press, that ? lter ? rm disclosures and disseminate information to the commonplace stockholding public. ARTICLE IN PRESSJ. E. Core et al. / Journal of pecuniary Economics 88 (2008) 125 3 supply of news received by these producers. Dyck and Zingales (2002) and moth miller (2006) argue that there is a consumer solicit for the investigative reporting role of the media, and Zingales (2000) hypothe sizes that readers rely on this reporting to form opinions but when they believe the information provided to be accurate and authorized. In contrast, Jensen (1979) takes a more skeptical heap of the media and suggests that most of the pick up for news services derives not from a strike for information, but from a demand for entertainment.Since the news medias competition infra this scenario is sitcom television and tabloids, the media is judge to sensationalize news stories. Jensen further argues that the media get out accommodate news stories to take a prejudicial vestige astir(predicate) psyches that are out of favor with public opinion (e. g. , CEOs who are compensable oft more than their peers, or who pitch laid off large numbers pool of employees). Miller (2006) provides some initial empirical results that are broadly reconciled with both(prenominal) of the above acknowledgments of demand for furtherance.He examines a sample of 263 cases of Securities and Exchange steering (SEC) Accounting and Auditing Enforcement Releases to investigate whether the press is a watchdog for accounting fraud. concordant with information provision, Miller ? nds that the media provides the public with information around accounting fraud. However, consistent with sensationalism, he also ? nds that the media is more in all probability to ? ll the watchdog role for ? rms with a big public avocation, ? rms with a richer information environment, and where the figment is more likely to be sensational and raise to the public.Miller also examines whether coverage is less disconfirming for ? rms that do more advertising, but his results do not support this raise proposition. Media coverage of executive compensation potentially satis? es both of the demand functions identi? ed above. Multi-million dollar pay packages, and the potential s bottom of the inningdals surrounding the loaded individuals who receive high pay, shag be very socialise. For example, there were repeated references, and umteen prejudicious references, in the press astir(predicate) Tyco Internationals bribe of a $6,000 immortalizeer curtain for CEO Dennis Kozlowskis corporate apartment.Similarly, there were repeated references, and m whatsoever disconfirming references, well-nigh the extensive perquisites paying(a) to global Electrics CEO, Jack Welch, that were disclosed in divorce minutes afterward his retirement. On the other hand, if readers of the press demand media coverage more or less executive compensation that provides reliable information about potential presidency problems, we expect that the media give identify and cover individuals who arrive at excessive pay. That is, low this hypothesis, the media pull up stakes not focus simply on large pay.Nor will it focus on large single components of pay such as stock option grants and bullion payouts from grant plans, or on large option exercises. Excess pay, de? ned as observed compensation less a bank note of expected compensation derived from standard economic determinants, is known to be a sign of poor governance (e. g. , Core, Holthausen, and Larcker, 1999), and poor governance is make passly an important issue for shareholders, employees, suppliers, and society at large.Under this hypothesis, the media will not focus simply on large gist pay (or option exercises) because it recognizes that large pay packages are optimal in roundabouttings where they re? ect the quality, instruction execution, or bargaining power of the CEO. Thus, we predict that the media makes adjustments to a devoted CEOs pay level to control for design or level-headed pay, and that coverage of excess pay will in the main hit a ban heart. We turn up this prediction with the succeeding(a) hypothesis H1. Negative media coverage of CEO compensation is positively related to excess pay.However, if the primary source of demand is not from con sumers seeking reliable information, but instead from consumers seeking entertaining news about highly paid executives, we expect that the media will sensationalize its stories. The press may satisfy this demand by writing damaging articles about executives with high pay, regardless of whether circumstances are such that the high pay is reasonable. In this case, we view the cast out coverage as sensationalism, and predict that opposely charged press coverage is positively related to total pay without making adjustments for an expected level of pay stipulation up the CEOs dexterity and performance.This sensationalism viewpoint provides a contrasting perspective to the informing the public notion underlying Hypothesis 1. Speci? cally, the press is predicted to provide negative coverage of high total pay (which is composed of expected pay given ?rm and CEO characteristics, plus excess pay). We propose the noteing hypothesis to test the sensationalism prediction H2. Negative m edia coverage of CEO compensation is positively related to total pay (i. e. , related to both expected pay and excess pay). ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 125 4 Economists generally view the grant place of stock options as a more appropriate measure of CEO optionbased pay than ex post realized increase from multi-year grants. For example, consider a CEO who is granted stock options each year for ? ve age. If this CEO chooses to exercise all of these options in the ? fth year, it would be inappropriate to guess that the CEO received no option compensation in the ? rst four eld when the options were granted, and substantial option compensation only in the ? th year when the options are exercised. However, exercise proceeds are a simple-to-understand, and easy-to- forecast measure of the pass judgment realized by executives from options. And, in fact, a measure of total payout that includes option exercises kind of than option grants is frequently cited in pay surveys in the ? nancial press (e. g. , see Forbes annual ? rankings of highest paid CEOs). 3 A sensationalism perspective (or possibly just na vete) suggests that the press may not discriminate between the CEOs annual pay and large dollar proceeds realized by CEOs from options.To examine this hypothesis, we test the quest H3. Negative media coverage of CEO compensation is positively related to large dollar amounts realized from stock option exercises. In addition to our analytic thinking of negative coverage of CEO compensation, we also examine general press coverage of compensation in order to break up the decision of the press to cover a story from the choice to produce a story with a negative tone. We do not formulate speci? c hypotheses about general coverage of pay, but rather include these results to provide descriptive vidence on how the press chooses which CEOs to cover. We view the role of non-negative coverage of compensation as being somewha t unclear. For example, general coverage of total pay (both expected and excess compensation) might be informative for corporate governance purposes by providing benchmarks against which to compare CEO pay across ? rms. However, general coverage of total pay might be consistent with sensationalism, where readers ? nd articles about wealthy CEOs to be entertaining, and are not particularly concerned about whether their pay level is expected or excessive. . 2. In? uence of the media on CEO compensation Dyck and Zingales (2002) argue that there are at least three slipway in which media attention can affect the reputations of ? rms and their of? cers and directors, and play a role in corporate governance. First, media attention on ? rms with weak corporate governance can drive politicians and regulators to enact legislation to reform or execute corporate law, especially if they believe that failure to do so would ail their political careers or cause public outcry.The recent media att ention given to stock option backdating, and the consequent regulatory interest, could be thought of as an example of this type of activity. 4 Second, negative media attention on managers and directors can call into question whether these individuals are good decision makers who att subvert to the interests of their shareholders and employers. Fama and Jensen (1983) make a similar argument that the treasure of managers and directors human capital depends primarily on signals about their performance as decision makers within corporations.Thus, if negative media attention damages managers and directors reputations, it can reduce the place of these individuals in the labor movement market. Finally, Dyck and Zingales (2002) argue that negative media attention can hurt the reputations of managers and directors within their communities and bring down social be on both them and their families. 5 Dyck and Zingales (2002, 2004) also provide evidence in an international setting that the media plays a role in corporate governance and in? uences ? rms behavior. Their primary ? ndings are that the private bene? s of control are smaller and the responsiveness of the private sector to environmental issues is greater in countries with larger newspaper circulation. 3 Executive bonuses are generally thrifty in compensation studies at payout values rather than ex ante values. Ideally, one would measure both option pay and bonus pay at the grant date expected value of the pay. However, although data are readily available to estimate grant date option values, it is dif? cult to estimate the expected value to the executive from a given bonus plan. 4 For example, see Heron and Lie (2007).Also see The bulwark highway Journal online at http//online. wsj. com/public/resources/documents/ info-optionsscore06-full. html, which lists corporations that have spot under SEC and Justice Department scrutiny for possible option backdating. We last accessed this website on February 23, 2007. 5 In our study, we do not distinguish between these three channels of media in? uence. For our purposes, it is only important that negative media attention about CEO compensation can impose costs on ? rms and their CEOs. ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 125 5 Two additive papers are related to our research question. Johnson, Porter and Shackell (1997) examine changes in compensation from 1993 to 1994 for a sample of 186 CEOs to investigate whether CEO compensation is unsanded to stakeholder pressure. They ? nd that the existence of a negative tone article in some(prenominal) one of ? ve leading periodicals is associated with a smaller growth in total CEO pay from 1993 to 1994 and an increase in the predisposition of cash pay to ? rm performance. However, as we demonstrate in Section 4. 2, this ? ding is illogical by strong mean reversion in pay among the general population of highly paid CEOs (i. e. , when a CEO has high pay in year t, there is a natural leaning for pay to be lower in year t+1). Moreover, highly paid CEOs are also more likely to receive media attention. Therefore, CEOs that draw media attention are more likely to experience mean reversion in pay, but this relation may not be causal. Finally, Louis, Joe, and Robinson (2004) provide some evidence that negative Business Week coverage regarding institutional investors opinion of board effectiveness in? ences boards actions. In particular, the boards identi? ed as scourge are more likely to replace CEOs and board chairs, to separate the CEO and chair functions, and to increase the number of outside board members. However, it is not clear from these ? ndings whether the boards actions are collect to media coverage or due to pressure from unsatis? ed institutional investors. If negative media coverage damages the reputations and human capital of managers and directors, ? rms will respond to this negative coverage by taking steps to counterm and further coverage in the future.However, the nature of the receptions that the ? rms might take is not clear. If the media acts as a good watchdog over executive pay, and if its negative coverage primarily serves to provide investors and the public at large with reliable information about excess pay, we expect ? rms to respond by reducing excess CEO pay. 6 An even more severe response would be to terminate the CEO to avoid future negative media coverage of that CEO and his compensation. To gain insight into the outcomes of negative media coverage, we test the hounding hypotheses H4.CEO compensation declines following negative media coverage. H5. CEO turnover increases following negative media attention. As feelingd above, it is also possible that the medias coverage of CEO pay serves to entertain readers with sensational stories. In this case, we expect that ? rms both take no action (and bear the brunt of any reputation damage) or make augmentative adjustments to avoid nega tive media attention in the future. An example of a nonfunctional change would be for the CEO to alter the pattern of his stock option exercises.If the media sensationalizes compensation stories by including the proceeds from option exercises in the computation of executive pay, CEOs may avoid exercising options for a few years or smooth out option exercises after the negative furtherance. We test the following research hypothesis H6. Option exercises decline following negative media attention. 3. pattern selection and versatile measurement Our initial sample consists of all ExecuComp CEOs from ? scal years 1993 to 2001. For a CEO to be included in the ? nal sample, we command that we can match the ? m to the Center for Research in Securities Prices (CRSP) database, that CEO elevate is available in ExecuComp, and that the CEO is in of? ce at the end of the ? scal year. Second, we require non-missing data on CEO compensation and on the varyings that we use to estimate our mode l for excess compensation and press coverage (described below). Finally, we require that the ? rm establish and CEO clear can be matched to the Factiva news source database. 7 These data requirements yield a sample of 12,090 CEO-year observations from 1993 to 2001.The sample contains 3,126 dissimilar CEOs at 2,052 different companies. The summary results in hold over 1 show that the number of CEOs in the sample grows slightly over time (as ExecuComp coverage increases). Consistent with other ? ndings exploitation ExecuComp data (e. g. , Hall and Murphy, 2002), we ? nd that CEO total compensation increases substantially over the period, and at a greater share growth rate than ? rm gross revenue. In addition, there is a monotonic increase in the intermediate level of total 6 As we discuss below, ? rms will respond to unanticipated negative coverage by reducing future pay.To the extent that ? rms anticipate the costs of negative media coverage, they will reduce current pay to a void these costs. 7 Factiva is a fit venture between Dow Jones and Reuters. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 6 fudge 1 Trends in CEO compensation and compensation-related press coverage socio-economic class N 1993 1,203 1994 1,250 1995 1,305 1996 1,316 1997 1,327 1998 1,392 1999 1,389 2000 1,443 2001 1,465 component change from 1993 to 2001 ingrained compt (thousands) SalestA1 (millions) turn of events of articles per CEOt+1 parting ofCEOs with coveraget+1 Fraction of CEO compensation articles with negative tonet+1 (%) 1,176 1,345 1,378 1,605 1,859 1,972 2,248 2,578 2,632 124% 883 859 872 950 959 936 1,058 1,061 1,162 32% 0. 27 0. 35 0. 47 0. 85 1. 01 1. 05 0. 98 1. 12 2. 23 724% 0. 09 0. 12 0. 13 0. 21 0. 22 0. 24 0. 23 0. 26 0. 38 302% 43 32 37 31 34 32 30 28 31 A28% The data consist of ExecuComp CEOs from ? scal years 1993 to 2001. The articles on CEO compensation are obtained from the Factiva database for the year after pay was earned, that is years 1994 to 2002. N is the sample size for that year. broad(a) Compt is the sample median salary, bonus, long-run bonus plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay (in $000s) in the ? scal year shown. SalestA1 is the sample median ? rm sales for year tA1. shape of Articles per CEO is the sample average total number of articles compose about the CEOs compensation in the Factiva database in the ? scal year t+1 after pay was earned. Percentage of CEOs with Coveraget+1 is the percentage of CEOs for whom the press covers CEO compensation.Fraction of CEO compensation articles with negative tonet+1 is the total number of negative articles scripted about the CEOs compensation ( employ the algorithm described in the textbook to measure negative tone) as a percentage of the total number of articles written about the CEOs compensation. press coverage of CEO pay and in the proportion of CEO s who receive coverage. However, qualified on receiving coverage, the proportion of coverage that is negative is relatively constant over time (we describe the measurement of these publicity variable stars below). . 1. Measurement of press coverage and negative press coverage We measure publicity about CEO compensation by gathering all articles related to the CEOs compensation from the Factiva database in the ? scal year after the compensation was earned (for example, for a ? rm with a ? scal year ending June 30, 2001, where CEO compensation is typically disclosed in the proxy statement in August or family line of 2001, we would match articles published during the next ? cal year ended June 30, 2002). We include all major news and business outcome sources on Factiva with the exception of the press release wires through which ? rms initiate the release of information, such as PR immatureswire, FD Newswire, and Business Wire. Similar to Francis, Huang, Rajgopal, and Zang (2004), w e use the company identi? er in Factiva to locate articles covering a speci? c ? rm. We then locate articles written about the CEOs compensation through the following search CEO NAME or CEO NAMES) near20 (compensation or salary or bonus or option* near10 grant or option* near10 receiv* or option* near10 exercis* or restricted stock or (pay near5 00) or (was paid near5 00) or (pay near5 million*) or (was paid near5 million*)) and (CEO NAME or CEO NAMES) selfsame(prenominal) (compensation or salary or bonus or option* near10 grant or option* near10 receiv* or option* near10 exercis* or restricted stock or (pay near5 00) or (was paid near5 00) or (pay near5 million*) or (was paid near5 million*)) The objective of this free text search is to identify all articles in which the CEOs compensation is described in either a positive, negative, or neutral fashion. We count each article as a single observation, regardless of the number of times a CEOs name or compensation is mentioned in the article. 8 As described in the Factiva Inside-Out cite Guide, near20 locates words within 20 words of the CEOs name and same locates words in the same paragraph as the CEOs name. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 7 To measure negative publicity about CEO compensation, we iteratively develop a Perl program to physical process the text of each article about CEO compensation to treasure whether the article has a negative tone. The input into the Perl program consists of a set of negative tone keywords and phrases.This set of keywords and phrases was developed from manually reading rough 200 articles about CEO compensation, where the articles included both randomly selected ? rms and ? rms widely known to have received negative publicity (e. g. Tyco international and Citigroup). 9 In order to validate and improve the Perl algorithm, we applied the search bowed stringed instrument to articles for a random sample of 50 CEOs, and we all owed the algorithm to classify the articles as having either a negative or non-negative tone. We then read these same articles and manually assigned each as having either a negative or non-negative tone. To identify errors in the Perl algorithm, we compared the two sets of coded negative tones using a hap table of manual partitioning versus computer partitioning. Based on the classi? ation errors, we adjusted the keyword search to improve the ? t of the search string within this 50 CEO sample. To check the validity of these adjustments, we applied the improved negative tone Perl algorithm string to articles for an independent random sample of 50 CEOs. We again read and partitioned the articles for this second random sample and excogitationed another contingency table to assess accuracy. This manual partitioning identi? ed 18% (82%) of the articles as negative tone (non-negative tone). The automated Perl keyword search correctly identi? ed 75% of the non-negative tone articles and 54% of the negative tone articles. Further, the manual partitioning identi? ed 25% (75%) of the ? m-years as having at least one negative tone article (no negative tone article). The Perl algorithm correctly identi? ed 63% of the ? rm-years without negative tone articles and 77% of the ? rm-years with negative tone articles. The fact that the classi? cation judge are less than vitamin C% con? rms that there is measurement error in our search string (in Section 4. 1, we show in sensitivity abridgment that this measurement error does not appear to affect our deduction). We use the revised search string to identify negative tone articles for the full sample of CEO compensation articles (NEGATIVE). addendum A shows our ? nal negative tone search string.In order to provide some descriptive information about our search string, Appendix B contains excerpts from two articles about the 2001 compensation package for E*Trade Financial Corporations CEO, Christos Cotsakos. twain articles were published on May 1, 2002. The ? rst article from The New York Times reports the salary, bonus, equity, and other components of Cotsakos pay package without taking a view as to whether the pay package is excessive or unreasonable. We classify this article as having a non-negative tone. The second article from The Wall Street Journal also reports the components of Cotsakos pay package but takes a negative tone by transaction the compensation an outsize package and referring to Cotsakos as the highestpaid CEO on Wall Street. The keyword outsize within a few words of salary and/or bonus, and the keyword highest within a few words of pay are both triggers for our keyword search that classify this article as having a negative tone. However, note the ennoble of the second article, No Discount E*Trade CEO Gets Pay Deal of $80 Million. Although this title clearly has a negative tone, the play on words nature of the text prevents us from ? agging this title as negative tone with our Perl search string. In this case, the body of the article is suf? cient to categorize the article as negative tone. We acknowledge that it is dif? cult to construct a completely accurate search string and that our negative tone classi? cation inevitably measures true negative tone with error. However, a sensitivity analysis summarized below in Section 4. suggests that our inference using the negative publicity measure in the full sample is not induced by measurement error. The time-series statistics on the number of compensation-related articles for our sample CEOs over the period 1994 to 2002 is describe in tabularize 2 (Panel A). 10 The number of compensation-related articles grew rapidly from 325 to 3,263 (Column 3), an increase of about 900%. However, at the same time, the total number of articles across all topics grew from 216,677 to 825,887 (Column 1), an increase of about 280%. Similarly, the number of news sources covering CEO compensation grew from 62 to 470 (Column 2), a rise of 9 As illustrated in Appendix A, the ? al negative tone search string consists of approximately cl keywords and phrases, such as high pay, excess pay, and generous options. For most of the phrases, we allow for the possibility that the keywords do not immediately precede or follow each other, and may be several words apart in the text. We also allow for different characterizations of the same word (e. g. , large bonus, larger bonus, and largest bonus). 10 Since our sample data on CEO compensation covers the time period from 1993 to 2001, the articles for the year following the compensation are gathered from 1994 to 2002. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 8 skirt 2Annual data on the source of articles on CEO compensation Panel A. Trends in Articles about CEO Compensation Year second of bout of articlesall sourcesCEO topics compensation articles (1) (2) 1994 1995 1996 1997 1998 1999 2000 2001 2002 Percentage change from 1994 2002 216,677 196,032 178,378 233,665 303,850 543,058 514,747 542,096 825,887 281% 62 97 131 234 244 279 308 323 470 658% Panel B. major sources and tone of coverage Type of source Source and Their Sources Number of CEO compensation articles (3) 325 439 609 1,117 1,346 1,465 1,362 1,616 3,263 904% Fraction of CEO compensation articles with negative tone (4) Number of WSJ articlesFraction of WSJ articles with negative tone (5) (6) 43% 32% 37% 31% 34% 32% 30% 28% 31% A28% 58 74 112 104 122 149 44 81 210 262% 48% 45% 43% 38% 39% 38% 25% 25% 40% A17% Number of CEO compensation articles Number of negative tone CEO compensation articles Fraction of CEO compensation articles with negative tone Newswire AP Dow Jones Reuters Sub-total 235 717 1,271 2,223 75 137 279 491 32% 19% 22% 22% Newspaper Chicago Sun-Times Financial Times New York Times The humans And Mail The Washington Post USA Today Wall Street Journal Sub-total 110 252 260 190 123 49 954 1,938 29 99 88 49 49 22 367 703 26% 39% 34% 26% 40% 45% 38% 36% Magazine Barrons Business WeekForbes Fortune Sub-total 44 43 43 40 170 27 21 15 17 80 61% 49% 35% 43% 47% The sample consists of ExecuComp CEOs from ? scal years 1993 to 2001. The articles on CEO compensation are obtained from the Factiva database for years 1994 to 2002, including the source of each article. Number of articlesall topics is the total number of articles for all sample ? rms for each year. Number of sourcesCEO compensation articles is the total number of different publications that printed an article about CEO compensation for each year. Number of CEO compensation articles is the total number of articles about CEO compensation for all sample ? rms for each year.Fraction of CEO compensation articles with negative tonet+1 is the total number of negative articles written about the CEOs compensation (using the algorithm described in the text to measure negative tone) as a percentage of the total number of articles written about the CEOs compensation. N umber of WSJ articles is the total number of The Wall Street Journal (WSJ) articles on CEO compensation for our sample, and fraction of compensation articles with negative tonet+1 is the percentage of WSJ articles with negative tone (using the algorithm described in the text to measure negative tone). Number of negative tone WSJ articles is the number of articles where negative tone is assessed using the algorithm described in the text. ARTICLE IN PRESS J. E.Core et al. / Journal of Financial Economics 88 (2008) 125 9 about 660%. To explore whether the growing number of compensation-related articles is primarily due to the growth in the number of articles and sources, we present time-series data for The Wall Street Journal, one of the largest sources. As might be expected, The Wall Street Journal released a growing number of compensation-related articles over this period. The total number of articles for this source was 210 in 2002 compared to 58 in 1994 (Column 5), an increase of a bout 260%. Thus, the increase in articles does not appear to be simply ca apply by the increase in sources cover by Factiva.The fraction of negative tone compensation articles across all sources has remained a somewhat constant fraction of total articles, with a p.a. average of about 33% (Column 4). The last column in panel 2 (Panel A) shows that a somewhat larger fraction of the compensation articles written by The Wall Street Journal are negative, with a per annum average of about 38%. This suggests that some news agencies, as a matter of strategy or reporting orientation, are more likely than others to publish compensation articles with a negative tone. To explore compensation coverage across news sources, we tabulate article counts separately for many of the major sources in Table 2 (Panel B). We classify major news sources as newswires, newspapers, or magazines.The main newswires, Associated Press, Dow Jones and Reuters, provide the sterling(prenominal) number of compensat ion-related articles, but have the lowest fraction of negative tone compensation articles, at about 22%. This latter ? nding is perhaps not surprising given that newswires tend to capture company press releases. The major newspapers (The Wall Street Journal, The New York Times, Financial Times, etc. ) supply the second highest fraction of negative tone articles, at 36%. The largest fraction of articles with a negative tone, at about 47%, is written by magazines (Fortune, Business Week, etc. ). This ranking of negative tone coverage potentially re? cts a greater tendency by the papers and magazines to sensationalize stories in order to sell copies, presumably due to differences in their subscriber base and marketing techniques. In the ? rst two rows of Table 3, we provide descriptive data on compensation-related articles by CEO-year. In this table, and in our data analysis in Tables 69, we mitigate the in? uence of outliers by setting the upperand lower-most percentiles for our varia bles allude to the values at the 1st and 99th percentiles in each year, respectively. Media coverage is skew, with the median CEO receiving no articles about his compensation in a given year. In 21. 6% of the CEO-years, at least one article was published about the CEOs compensation, and the 10% of the CEO-years with the greatest media coverage received at least two articles.Negative media coverage is skewed to an even greater extent, with only 10. 0% of the CEO-years receiving at least one compensation article with a negative tone. In 1% of the CEO-years, at least four negative tone articles were written about the CEOs compensation. For the 2,607 observations in which the CEO has some coverage of his compensation, 47% of the CEOs have at least some negative-toned coverage, and 28% of the compensation articles have a negative tone. 3. 2. Control variables and model of expected press coverage Our main objective is to better understand the determinants of press coverage about executiv e compensation, and in particular, negative coverage about executive compensation.The results in Tables 1 and 3 reveal that only a subset of CEOs attracts press coverage on their account compensation. Among the CEOs that attract coverage, there is substantial variation in the degree of negative comments about their pay, as proxied by the proportion of the coverage that is negative. To address this empirically, we ? rst model the medias choice of whether to cover a CEO with the following probit model E? Prob? Coverageit? 1 ? F? go ? g1 Compensationit ? g2 Controls?. (1) For those CEOs who receive coverage, we model the proportion of the coverage that is negative with the following general linear model E ? % of Negative Articlesit? 1 jCoveraget? 1 ? ? G? bo ? b1 Compensationit ? b2 Controls?. (2) The dependent variable in Eq. 2) is a fraction bounded between 0 and 1. We follow Papke and Wooldridge (1996) and estimate Eq. (2) using a general linear model (GLM) in which the link funct ion is logistic. Papke ARTICLE IN PRESS 10 J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 Table 3 Descriptive statistics Variable Mean Std Dev P1 Q1 Median Q3 P90 P99 Number of articlest+1 Coveraget+1 Number of negative articlest+1 % of negative articlest+1 Number of ? rm articlest+1 core compt Total payoutt Tenuret S&P500t SalestA1 Bk/MkttA1 RETt ROAt 0. 81 0. 22 0. 23 0. 28 293. 85 3,746 3,122 7. 60 0. 33 3,280 0. 65 0. 20 0. 04 2. 79 0. 41 0. 92 0. 37 669. 29 6,237 6,587 7. 45 0. 47 6,296 0. 7 0. 61 0. 10 0. 00 0. 00 0. 00 0. 00 1. 00 189 117 0. 08 0. 00 17 0. 11 A0. 75 A0. 37 0. 00 0. 00 0. 00 0. 00 52. 00 904 659 2. 17 0. 00 353 0. 44 A0. 13 0. 01 0. 00 0. 00 0. 00 0. 00 116. 00 1,758 1,246 5. 33 0. 00 980 0. 66 0. 11 0. 05 0. 00 0. 00 0. 00 0. 50 244. 00 3,822 2,736 10. 58 1. 00 2,989 0. 86 0. 38 0. 09 2. 00 1. 00 1. 00 1. 00 599. 00 8,334 6,675 16. 92 1. 00 8,775 0. 98 0. 76 0. 14 16. 00 1. 00 5. 00 1. 00 3,856. 00 32,909 37,109 35. 92 1. 00 34,654 1. 20 2. 34 0. 25 This table presents descriptive statistics for the variables used in the subsequent analyses. The sample consists of 12,090 observations for ExecuComp CEOs from ? cal years 1993 to 2001. The articles on CEO compensation are obtained from the Factiva database for years 1994 to 2002. Number of Articlest+1 is the total number of articles written about the CEOs compensation. Coveraget+1 is an indicator variable for whether the press covers CEO compensation. Number of Negative Articlest+1 is the total number of negative tone articles written about the CEOs compensation, where negative tone is assessed using the algorithm described in the text. % of Negative Articlest+1 is Number of Negative Articlest+1 dissever by Number of Articlest+1. This variable is tabulated only for the 2607 observations with Coveraget+1 greater than cipher.Number of unattackable Articlest+1 is the number of articles (all topics) written about the ? rm during year t+1. Total Compt is salary, bonus, lo ng-term inducement plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay for the CEO in year t. Total Payoutt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the proceeds from options exercised during the year, and any other annual pay for the CEO in year t. Tenuret is the CEOs incumbency in years at the end of year t. S&P500t is one if the ? rm is in the S&P500 at the end of year t, and zero otherwise. SalestA1 (in millions of dollars) is ? rm sales for year tA1.Bk/MkttA1 is (book value of assets)/(book value of liabilities+market value of equity) at the end of year tA1. RETt is the ? rms return for the year t. ROAt is income before bonzer items dual-lane by average total assets for the year t. and Wooldridge show that this estimator is consistent when the dependent variable is a proportion ranging from 0 to 1, and when there may be a mass of observations at 0 and 1. 1 1 We note that in these models, coverage and negative coverage are measured in the ? scal year t+1 following determination of compensation in year t. 12 This lessens the chance of a simultaneity bias, in which realized negative coverage causes reductions in realized pay. However, as we discuss further below, if ? ms anticipate that future negative coverage can be very costly, they may reduce current pay in order to avoid future coverage. We expect that publicity about CEO pay derives not only from the magnitude and components of CEO pay, but also from general determinants of press coverage. Therefore, we control for the determinants of publicity that are not nowadays related to CEO compensation. To our knowledge, an accepted model for the expected level of press coverage related to CEO pay does not exist. As a starting point, we include log(Number of Firm Articles) as a control variable for general ? rm-speci? c press coverage across all topics, where log(Number of Firm Articles) i s measured for each ? m-year as the natural log of the total number of articles that mention the ? rm across all major news and business publication sources on Factiva, excluding newswires that primarily carry company-initiated 11 We obtain the same inference if we instead estimate a linear model for the fraction using ordinary least squares (OLS). If we estimate an OLS model for the fraction and include a Heckman (1979) subject area for the predictability of the coverage decision in Eq. (1), we obtain the same inference. The Heckman correction is not signi? cant in any of our models, which suggests that results are cast-iron to ignoring the selection in the second-stage model. 12Base salary, option and restricted stock grants, and the majority of compensation are obstinate and paid during the ? scal year. The one exception is cash bonuses, which are determined early the next ? scal year after results are known. However, the bonus amounts tend to be small compared to option and r estricted stock grants. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 11 disclosures. 13 We also expect that ? rm size is a key determinant of publicity (see Jensen, 1979 Miller, 2006). Press coverage of large ? rms will have broader appeal as these ? rms are more likely to be household names and to have larger customer and shareholder bases. At the same time, large ? rms may e able to impose costs on media ? rms that cover them in a negative light. These costs may come in the form of withholding valuable news stories or withholding advertising dollars. 14 We use two variables to control for ? rm size and likelihood of broad appeal the logarithm of each ? rms sales revenues (Sales) and membership in the S&P 500 (S&P500). Jensen (1979) argues that the media is more likely to write a negative article when the individual under scrutiny has lost popularity with the public. We include recent ? rm performance in our regressions to control for the possib ility that the CEO has fallen out of favor with the public.We measure ? rm performance using contemporaneous and lagged stock returns obtained from CRSP (RET) and accounting performance obtained from Compustat (ROA) which is computed as net income before extraordinary items divided by average assets. To allow for the possibility that press coverage is more sensitive to negative performance than to positive performance, we include separate variables for negative (NEG) and positive (POS) stock return and accounting performance. 15 We also include CEO tenure (Tenure) as a control variable because we expect that it may take time for the press to become interested in covering a new CEO.Finally, we expect that press coverage varies across different calendar years and sectors of the economy. To capture this effect we include indicator variables for two-digit fructify code and calendar year in our model. 3. 3. Measurement of compensation variables and excess compensation As described in Se ction 2, we expect that publicity may be in? uenced by total annual compensation. We measure Total Comp as the sum of salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay. This is the most common measure of total pay in the academic literature.We hypothesize in Hypothesis 3 that press coverage could also be affected by realized option exercise proceeds as opposed to option grant value. To test this hypothesis, we construct a measure of total realized payouts to the CEO, Total Payout, computed as the sum of salary, bonus, long-term incentive plan payouts, value of restricted stock grants, proceeds from options exercised during the year, and any other annual pay. This measure of total realized payout is common in the media (e. g. , see Forbes annual rankings of highest paid CEOs). 16 We obtain our compensation data from ExecuComp. Descriptive statistics for the compensation variabl es are presented in Table 3. The mean Total Comp is $3. 7 million, and the mean Total Payout is $3. 1 million.However, the values in the extreme percentile of Total Payout are somewhat greater than those for Total Comp. In addition to these raw compensation variables, we also construct a measure of excess CEO compensation to investigate whether the media appears to make adjustments for a normal level of compensation when writing an article with a negative tone. We measure excess compensation as actual compensation minus expected compensation. Our benchmark model for expected compensation follows forward research in this area (e. g. , Smith and Watts, 1992 Core, Holthausen, and Larcker, 1999 Murphy, 1999), and is obtained by regressing the natural logarithm (Log) of compensation on proxies for economic determinants of CEO compensation, such as ? m size, growth opportunities, stock return, accounting return, and industry controls Log? Compensationit ? ? a ? xit b ? uit 13 (3) In the 68 ? rm-years with no articles on Factiva, we set Number of Firm Articles equal to one to avoid losing the observations. The costs of withholding valuable news from the press may apply not only to large ? rms but also to growing ? rms with rich information environments that are engaging in substantial investments, acquisitions, or product developments. At the same time, growth ? rms may also have broader appeal to the public than stable or declining ? rms. Our regressions are robust to including book-to-market as a control variable for ? rms investment opportunities. 15Dial and Murphy (1995) raise the possibility that unpopular operational decisions draw media attention. For example, in their case study of General Dynamics, the press strongly criticized the CEO for receiving a bonus payout after the stock price responded positively to his decision to lay off thousands of employees. We examine this possibility in Section 4. 3. 16 Total Payout also has favorite(a) econometric proper ties as compared to using only the proceeds from option exercises. Speci? cally, an option exercise variable has a large mass at zero, whereas Total Payout has a positive value for all cases. 14 ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 12 here Compensationit is Total Comp or Total Payout as described in Section 3. 3, and xit consists of Log(Tenure)it, Log(Sales)itA1, S&P500itA1, Book-to-marketitA1, RETit, RETitA1, ROAit, ROAitA1, and Industry controlsit. Book-to-market is (book value of assets)/(book value of liabilities+market value of equity), and the other independent variables are de? ned above. We estimate Eq. (3) using OLS. We estimate expect Compensation by exponentiating the expected value of Eq. (3). We compute relaxation(Compensation) by estimating expected Compensation and subtracting it from Compensation Residual? Compensationit ? ? Compensationit A Expected Compensationit . (4) We compute %Residual Compensation as Residual? Comp ensationit ? ? log? Compensationit ? A log? Expected Compensationit ?. (5) Although we estimate Eq. (2) using annual cross-sectional regressions, in the interest of brevity, we present the results of a pooled cross-section, time-series estimation of Eq. (2) with year indicators in Table 4. Consistent with prior(prenominal)(prenominal) research, we ? nd that all measures of compensation exhibit the expected positive associations with ? rm size, growth opportunities, and stock returns. The coef? cient estimates for the annual regressions are substantively similar to those reported in Table 4. Table 4 Regressions for compensation variables Dependent variableIndependent variable Log(total compt) Log(total payoutt) Log(tenure)t A0. 02 (A0. 80) 0. 42*** (17. 96) 0. 12** (2. 30) A0. 99*** (A9. 76) 0. 27*** (12. 84) 0. 16*** (6. 71) A1. 00*** (A5. 87) A0. 45** (A2. 07) 0. 4290 0. 13*** (6. 93) 0. 40*** (18. 74) 0. 14** (2. 83) A0. 69*** (A6. 80) 0. 31*** (11. 64) 0. 26*** (19. 23) 0. 40* (1. 98) A0. 51* (A1. 72) 0. 4274 Log(sales)tA1 S&P500t Bk/MkttA1 RETt RETtA1 ROAt ROAtA1 R2 This table presents results of pooled cross-sectional OLS regressions for the logarithms of two measures of CEO compensation and the economic determinants of compensation. The sample consists of 12,090 observations for ExecuComp CEOs from ? cal years 1993 to 2001. Total Compt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay for the CEO in year t. Total Payoutt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the proceeds from options exercised during the year, and any other annual pay for the CEO in year t. Log(Tenure)t is the logarithm of the CEOs tenure in years at the end of year t. Log(Sales)tA1 is the logarithm of ? rm sales for year tA1. S&P500t is one if the ? rm is in the S&P500 at the end of year t, and zero otherwise.Bk/MkttA1 is (b ook value of assets)/(book value of liabilities+market value of equity) at the end of year tA1. RETt is the ? rms return for year t. RETtA1 is the ? rms return for year tA1. ROAt is income before extraordinary items divided by average total assets for year t. ROAtA1 is income before extraordinary items divided by average total assets for year tA1. Fixed effects for year and 2-digit SIC codes are included in the regressions, but not tabulated. T-statistics using Huber-White robust standard errors are presented in parentheses below coef? cient estimates. *, **, and *** indicate two-tailed statistical signi? cance at 10, 5, and 1 percent levels, respectively. ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 125 13 3. 4. Illustrations from the sample Table 5 (Panel A) lists the ten CEOs with the greatest amount of coverage (i. e. , greatest number of articles) about their compensation in any given year during our sample period. The compensation and ? rm charac teristic variables are provided for the year prior to the press coverage variables (thus, the year t+1 designation on the press variables). These CEOs had between 87 and 320 compensation-related articles, as well as very substantial negative press coverage, as measured by either fraction of articles that are negative, or number of articles that are negative.The percentage of negative articles in this group of CEOs ranges from 32% to 73%, whereas the sample average is 28% (see Table 3). CEOs with a large number of compensation-related articles tend to manage large, poor performing ? rms. Seven out of the ten ? rms have market capitalisation of $20 billion or more, and three-year market-adjusted returns are negative for all of the ten ? rms. Dennis Kozlowski of Tyco International received the most compensation-related articles in 2002 with 320, as well as the most negative articles (57% or 183 negative articles). His total compensation in 2001 was $77. 8 million with substantial estim ated excess compensation. 17 Five of these ten CEOs had positive excess total pay in the year prior to the publicity.However, excess compensation during the prior year was not the obvious instigant of the press coverage for some of these CEOs. For example, Sanford Weill, CEO of Citigroup, received 178 compensation-related articles (40% of which were negative), but had negative excess total pay. At the same time, Mr. Weill had a combination of fairly large raw compensation at $16. 6 million, substantial option exercises, poor three-year market-adjusted stock return performance (A44%), and a history of prior media attention for being among the higher paid CEOs. Similarly, Carly Fiorina, CEO of Hewlett Packard, received 168 articles in 2002 (32% of which were negative), but had lower than expected pay in 2001.However, although she had negative excess compensation, Ms. Fiorina was the recipient of considerable criticism about Hewlett Packards sub-par performance as evidenced by Hewlett Packards market-adjusted stock return of A68% from 2000 to 2002. Another interesting example is Thomas Siebel of Siebel Systems, Inc. , who drew 132 articles and 65 negative articles about compensation in 2003, and yet received no pay in 2002. However, Mr. Siebel exercised a substantial dollar amount of options in 2002 (as well as in 2001), and also received a very large grant of new options in 2001. Siebel Systems also had extremely poor three-year market-adjusted stock price performance at A123%.Table 5 (Panel B) lists the ten CEOs with the greatest percentage of negative articles in any given year during our sample period (i. e. , the number of negative articles about compensation divided by the total number of articles about compensation). We restrict our attention to ? rms that have at least four articles on CEO compensation, because there are many CEOs with only one or two compensationrelated articles, and where 100% of these articles are negative. The ? rms in Panel B are ge nerally much smaller than those reported in Panel A which suggests that the total volume of press coverage is related to ? rm size. The results suggest a mixture of explanations for a high percentage of negative articles.The CEOs at exonerate Stearns, EOG Resources, and Warnaco Group received very large total and residual compensation, and the CEO of Micron received a large stock option payout in the year of negative press coverage. The CEOs of Hillenbrand Industries, Nike, and Federal-Mogul received relatively modest levels of total compensation, and the negative press coverage seems to be due to their large negative marketadjusted returns. The explanations for Delphi Financial and Manpower are not clear, as both of these companies have low relative total compensation, no stock option payouts, and reasonable market-adjusted returns. It is also useful to examine some features of negative publicity for CEOs selected on the basis of large excess compensation.For example, an examinati on of the ten CEOs in 2001 with the greatest excess total direct compensation indicates that eight out of the ten CEOs received some negative publicity in 2002 (not tabulated). Interestingly, some of these likewise paid CEOs received no media attention. Greg Reyes, CEO of Brocade Communications, received about $370 million in total direct compensation, primarily due to a grant of more than 10 million stock options. However, even though he received the greatest amount of excess pay, Mr. Reyes received no negative publicity (although he was subsequently accused of 17 In Table 4, we do not winsorize any of the variables being shown. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 125 14Table 5 Panel A. CEOs with greatest number of articles gild name CEO last name Year Number of articlest+1 % of negative articlest+1 (%) Tenure as CEO (years)t Total compt Residual (total comp)t Total payoutt Three-year mkt-adj stock returnt (%) Market value of equity ($mil )t Tyco International AMR Corp. Citigroup Inc. Hewlett-Packard Co. Siebel Systems Delta Air Lines Qwest Commun. Disney (Walt) Co Disney (Walt) Co. Disney (Walt) Co. Kozlowski Carty Weill Fiorina Siebel Mullin Nacchio Eisner Eisner Eisner 2001 2002 2002 2001 2002 2002 2001 1996 1997 1998 320 250 178 168 132 121 116 109 88 87 57 54 40 32 49 73 35 50 55 38 9. 2 4. 6 4. 9 2. 3 . 4 5. 3 4. 9 12. 0 13. 0 14. 0 77,767 10,171 16,556 18,121 0 14,039 74,115 202,185 10,654 5,768 55,390 2,484 A18,313 A11,533 A6,994 6,901 57,349 192,527 A233 A9,244 42,177 1,109 13,367 1,248 34,586 4,870 101,995 8,654 10,654 575,596 A85 A111 A44 A68 A123 A120 A106 A7 A45 A74 88,064 1,030 180,901 32,633 3,600 1,493 23,506 42,631 54,099 52,552 Panel B. CEOs with greatest percentage of negative articles Company name CEO last name Year Number of articlest+1 % of negative articlest+1 (%) Tenure as CEO (years)t Total compt Residual (total comp)t Total payoutt Three-year mkt-adj stock returnt (%) Market value of equity ($mil)t Hillenbrand IndustriesNike Inc. Delphi Financial Grp. oblige Stearns Federal-Mogul Micron Technology Bear Stearns EOG Resources Inc. Manpower Inc. Warnaco Group Inc. Hillenbrand Knight Rosenkranz Cayne Miller Appleton Cayne Hoglund Fromstein Wachner 1998 1997 2002 1995 2000 1996 1998 1994 1995 1996 12 10 9 7 6 5 5 4 4 4 100 100 100 100 100 100 100 100 100 100 9. 6 29. 3 15. 6 1. 9 0. 3 1. 9 4. 9 7. 3 6. 9 9. 3 3,887 1,679 1,500 8,472 880 4,251 27,176 13,365 3,726 20,490 A51 A4,256 A1,327 4,649 A1,960 1,074 16,260 11,477 A559 17,301 2,936 1,679 1,500 9,384 426 4,847 27,176 20,114 3,726 9,434 A102 A56 A1 A26 A149 4 28 4 28 A32 3,793 13,202 783 2,508 163 4,750 6,663 3,000