DO THE CANADIAN CEOs DESERVE THE HIGH COMPENSATIONS THEY ARE GETTING?

According to an annual review published by the Canadian Centre for Policy Alternatives in January 2014, the average compensation among Canada's top 100 CEOs was $7.96 million in 2012 whereas the average annual Canadian worker's salary was $46,634.

The review further found that the top-earning executive in Canada was the head of the Canadian Pacific Railway, Hunter Harrison, who was paid $49.1 million in salary, stock options and bonuses in 2012. The second-highest paid CEO was James Smith of Thomson Reuters Corp., who took home $18.8 million. The lowest-paid CEO on the top 100 list was Lino A. Saputo, of Montreal-based dairy Saputo Inc., who earned $3.85 million.

The report’s author also said in a statement "….. There is no clear relationship between CEO compensation and any measure of corporate performance.” So, a question that might inevitably come to mind is: Do the Canadian CEOs really deserve the high compensations?

The answer should actually depend on whether the CEO in question also meets some criteria mentioned below (which may include some intangibles also apart from SMART goals) and not just measured against the usual main criterion of share price increase (and earning per share):

§  Has s/he expanded the company in real terms within and/or outside Canada?

§  Has s/he secured the foundation of future growth of the company?
§  Has s/he been able to make the company financially stronger than before?
§  Has s/he been instrumental in achieving some innovative outcome with regard to product of the company?
§  Has s/he been able to enhance the brand/reputation equity too of the company?
§  Has s/he made suitable succession plans?
§  Has s/he made sure of the proper training and grooming of middle and senior middle layers of the organization?

If one applies the above yardsticks to the top 100 earning CEOs of Canada, one may come to the conclusion that a number of them just do not deserve the high compensations they have wangled for themselves. In fact, may be the majority may turn out to be just a bunch of mediocre executives who by admixture of luck, some clever and strategic positioning and some hard work have reached the position they hold now.

If one reviews the performance of Canadian companies as a whole, one may not find any true outstanding CEO of the ilk of Charles Schwabs, Lee Iacoccas, Jack Welches, Steve Jobbs and so on – folks who were outstanding leaders and visionaries at the same time . May be one CEO in the top 100 list comes close – he is former Suncor CEO Rick George. Otherwise most of the others on the list are what one may call “Manager Leaders” rather than “Leader Leaders” – hardly manifesting attributes of a leader with a vision, drive and tenacity.

No wonder then that one finds a general decline (and some cases demise) of Canadian companies (examples of Nortel and Blackberry come to mind immediately while there are others too).

If one looks at the CEOs, for instance, of oil and gas companies (including pipeline companies) operating in Canada one finds most of them to be pathetically mediocre – they seem to be somehow surviving by hanging by the coat tails of the provincial and federal minsters whether in getting their major projects pushed forward or solving their issues stemming from their (CEOs’) incompetence. These CEOs seem so woefully incompetent in being proactive, in anticipating risks to major projects, so inept in tackling the public issues on their own. And this is not just a subjective view, time and time again these CEOs have demonstrated their crass incompetence on the fronts mentioned above in the past months and recent years.

If one looks at the middle and senior middle management levels too, one finds square pegs in the round holes – people not properly trained and groomed being thrust in positions they are not competent to hold. Consequently, they are not only struggling themselves in discharging the role expected off them, they are making lives of people of other organizations, they are having to interact with (in connection with their work, e.g., new projects), absolutely miserable. They become such a pain to work with, worst of all they are potentially rendering the corporation weaker.

So, what would happen if there is mediocrity at the top and middle of an organization – they become weak and a potential target for being swallowed by others (if the organization is worth taking over). This is a serious situation, a ticking time bomb, which the Canada Inc. is not taking cognizance of and also not taking any action about: may be the corporate Canada is not capable of realizing it (again because of mediocrity and foolish arrogance that they know the best).

In summary, not only the compensation package of the CEOs of Canadian companies need to be evaluated against set of tangible as well as intangible criteria, the CEO material also needs to be improved – the creeping mediocrity needs to be discouraged with heavy hand and top class leaders identified and installed. If the mediocrity at top is not tackled soon, the long term negative consequences for the Canadian economy could be potentially catastrophic and Canada's pride of being a true first world country might be irreparably damaged.

 

PREDICTIONS FOR 2014 FOR NORTH AMERICA – ECONOMIC (AND SOME POLITICAL)

UNITED STATES

Republican and Democrat tussle on budget, Obamacare and overall deficit will negatively impact the economic growth US could potentially have in 2014.

Attempts to scale back Quantitative Easing will meet some setbacks.

US may have to make some tough choices in regard to getting militarily involved (covertly and/or overtly) in certain countries resulting in strain on the economy.

In order to improve economic situation, US will have to find ways to reduce imports and enhance exports. Oil is one area where imports could be further reduced by increasing domestic production.

US would heighten its efforts to find ways to increase exports of real goods, and services: New materials (using new technology), new products (military hardware, products that can find use in industrial and domestic sectors), virtual products etc. besides the traditional exports items. New efficiencies would need to be found in services industry and export opportunities would need to be identified.

2014 congressional elections are likely to throw some unexpected results for both parties. The results would further confuse the incumbent president as to which path he should tread on – should he stick to policies that may leave behind some sort of legacy or make some radical shift in policies that have greater chances of helping the party in 2016 elections.

The front runner democrat presidential candidate would be publicly at loggerheads with the incumbent president on various policy issues.

There would be more challenges to US domination in international political arena. Confused signals from US would weaken its position on number of issues.  The incumbent president may be impelled to make some abrupt shifts in US stances which could make the situation further complicated vis-à-vis its allies and opponents alike.

CANADA

Economy would struggle to keep up a growth rate of greater than 2.0%. Commodities sector would struggle, so would the manufacturing sector.

Lack of unity amongst the political parties regarding development of oil and gas resources might hurt Canada’s short and long term prospects.

Slow progress on LNG, oil pipelines policy decisions by government as well as the companies would further complicate economic outlook. Competition from Mexico and US would pose newer challenges for Canadian policy makers and corporate bigwigs.

Canada may have to think in terms of resorting to some form of quantitative easing to prevent build-up of deflationary tendencies.

Canada would need to significantly enhance its exports by finding new avenues as well as more and diverse products.

The ruling party at the federal level would adopt some populist measures to improve its chances at the 2015 hustings.  The leadership would try to appear more decisive and focused – some efforts though would cause confusion and some backlash.

HEALTHCARE REFORM IN USA – WHY DO THE DEMOCRATS FIND THEMSELVES FIGHTING AN UPHILL BATTLE?

Damned if you do, and damned if you don’t! That is the kind of situation the Democrats are finding themselves in at the moment on the issue of health care reform in US.

First of all, what the heck is this so-called healthcare reform? Did the message not go out to masses in US as to what this reform is all about? Did the message not go out loud and CLEAR why this reform is needed by US economy?

Well, as expected the opposition, i.e., Republicans did their best in attacking the reform and along with it the Democrats. The Republicans succeeded in confusing the issue – they got the so-called tea parties organized, they used the stream of media, which supports them, to fullest advantage. And in their efforts, it is also alleged (and it seems this may be true) that they were strongly supported with all the resources by the vested interests, namely, Insurance lobby.

Result: The anti-Democrats are dead against the reform; and the Democrat vote base is hugely confused about efficacy of this reform, if any.

Things that helped the Republicans: Essentially poor dissemination of information about the urgency of this reform, and why the reform is important for US. There was hardly any coherent and sustained dissemination as to the need for reform in order to save the American economy in the long run.

If this reform is/was so darn important from the economic standpoint for the average American and US as a whole, then why was this friggin' message not spread by the dint of the loudest of the drums?

· There was hopelessly feeble rebuttal of dis-information/mis-information spread regarding ‘Death Panels’, applicability of the reform to illegal immigrants, public option and so on.
· There was no proactive planning to anticipate Republican negative campaign and counter it – the town hall meetings were hardly arranged in numbers by Democrats that could effectively dispel and rebut the dis-information/mis-information spread by the vested interests.
· Democrats (including President Obama) and the supportive media tended to use long winded professorial verbiage to explain the purported advantages of health care reform and/or rebut Republican sponsored dis-information/mis-information.

So, the net result is that the upcoming elections (and to be held in Nov 2010) are making Democrats jittery – the once safe Senate seat of Massachusetts is going to the wire now. If the Republicans win that seat, life for the Democrats in the Senate will become lot more difficult in terms of getting new legislative measures put in place.

Did Obama bite more than he could chew? Not if this was the only issue to be dealt with. Did he underestimate the bog-down potential of the various issues that were on his plate in the first year of his presidency? The turn of events seem to suggest so.

Can anything be done by the Democrats to salvage the situation? Yes! Arrange a nation-wide barn storming campaign to clarify the confusion/questions the average American has with regard to health reform; and to explain how s/he stands to benefit (individually immediately and as society as a whole in the long run), how USA stands to benefit, the perils to US economy if health care aspect is not handled properly NOW.

Also, the campaign needs to stress that health care is not a Democrat or Republican issue – it is a human being issue, a national issue for the future of USA. Is it a bit too late in the day? May be, but no harm in trying.

And, for God’s sakes simple short sentences have to be used to explain the various aspects of the reform. Long sentences with journalistic verbosity are never helpful in communication with masses– this simple cardinal rule of mass communication needs to be drilled in the heads of the Democrat speech writers and the so-called liberal media practitioners.

President Obama is said to have lots of tenacity – he needs to bring all of that now to get over this major hump in his current political journey. He seems to be sincere, working for and on behalf of the people of US for the greater good of the society. If this is true, the power that be from the Heavens above will turn the course in favour of the good-doer.

PREDICTIONS FOR YEAR 2010 – WITH NEO-ASTROLOGICAL APPROACH!

Planet ‘A’ is supposed to sextile with Planet ‘B’ in 1st quarter of 2010, whereas Planet ‘C’ will try to sneak in a trine with some other planet. Planet ‘D’ is not going to be lazy either, it will conspire to quinseptile Planet ‘E’ in 2nd quarter of the year. However, Planet ‘F’ will be actively courting Planet ‘G’ to sesquisquare with it sometime in 2nd/3rd quarter. Meanwhile, Planet ‘A’ would surreptitously semisquare to Planet ‘X’ with an eye on Planet ‘Y’ in 3rd quarter. Most likely this will bring about a quantrine of Planet ‘G’ to Planet ‘H’. This will inadvertently lead to quantiplexing of the geodetic forces between Planets ‘F’ and ‘M’ which will surprisingly throw up a benign hemisquaring between Planet ‘C’ and Planet ‘Y’ towards the end of the year.

While the abovementioned high falutin astrological mumbo jumbo may not be making sense, unless one looks at it with a 'neo-approach', but as an aside at least an attempt could be made, in simple English, to look at topics which may be critical in 2010. Let us see what these topics could potentially be:

Economic:
· There may be a dip on global economic front starting early 2nd quarter and then stabilizing in 3rd quarter. Global economy will be on the path of recovery by end of 2010.
· Noble metals will continue to entice and frustrate the investors.
· There is possibility of next round of bitterness between developed and the developing nations with regard to CO2 emission limits.
· China will likely continue to provide artificial resuscitation to its economy never mind even if it creates potentially disastrous bubbles.
· Large oil companies are likely to feel more frustrated in making investment decisions in non-conventional sources of crude oil.

Political:
· Russia is likely to look for chinks in American armour and bargain accordingly.
· Europe will like to concentrate more on economic recovery unless forced (by unforeseen circumstances) to pitch in more in fight against religious radicalism.
· Western European nations will increasingly realize their foolishness to have allowed influx of Muslim population in their countries during last few decades.
· China is likely to enhance its global political gamesmanship this year.
· Forces inimical to Iraq’s ambition to increase crude oil production are likely to become more active.
· Pakistan’s top army brass will most probably prove to be greater rouges and tough to fathom. The Army and their intelligence agency will at the same time play mystifying games of betrayal and boot licking (of western powers).
· Middle East may see rise in tension towards 3rd quarter.
· Afghanistan’s fate will most likely experience roller coaster like ride tagged along with waxing and waning of Karzai’s fortunes/faux pas.

Other:
· US will increasingly realize the need to recover the leadership through new technological breakthroughs and inventions.
· Ultra rightists and hard core Republicans in US may cause to bring misery to their land due to their insensitivity and inveterate dogmatic approach.
· BASIC countries are likely to continue their unified approach on matters of mutual interest. India may see some political instability during the 1st half of the year.
· The world is likely to see its fair quota of natural disasters – earthquakes, tsunamis, hurricanes and volcanic eruptions.

One hopes the voice and thinking of the saner elements belonging to any political stripe or religious belief all around the world will prevail over the doctrinaire and fissiparous elements.

Whether or how the galactic constellations may be influencing the events of 2010 and beyond is anybody’s guess, but at least one can pray to that Supreme Almighty God to lessen the potential of miseries and provide the wisdom to human race to realize, feel and act with reason and compassion. Amen!

TOO MUCH ON OBAMA’S PLATTER – BUSH ERA MESS, HIS CAMPAIGN PROMISES, AND HAVING TO COUNTER REPUBLICAN ONSLAUGHTS!

If one sees the current challenges facing President Obama one can’t but help feel empathetic for him. Only someone utterly insane or the greatest rogue practitioner of political antagonism would allude that Obama is not working for the interests of USA. As well, to any sane and impartial observer it would be apparent that Obama is bogged down in too many things at one time.

The major issues which he has to contend with currently can be grouped under following heads:

Mess left behind by George W. Bush administration – These include:
· The worst economic situation since the great depression of 1930s and hopeless action planning to deal with it in medium and long term;
· No clear cut politico-military strategy in Afghanistan;
· Confused policy vis-à-vis dealing with Pakistan, Taliban and the Af-Pak region;
· Highly strained relations (with a dash of mistrust) with Russia;
· One of the most inept, languid, direction-less handling of Middle-East ever seen;
· Convoluted one-step-forward-two-step-backward policy on Iran;
· Half-hearted policy endeavours with regard to dealing with North Korea;
· Disastrous policy stances on environment;
· Myopic goals clouding economic and strategic planning vis-à-vis China;
· Rushed through and muddled exit strategy from Iraq;
· Highly negative international image of USA.

Election campaign promises of President Obama – These include:
· Health care reform;
· Closure of Guantanamo Bay prison camps;
· Changes in environment policy of US;
· Reforming the way Wall Street operates and curbs on Wall Street fat cats;
· Reducing/neutralizing the stranglehold of lobbyists and power brokers in Washington.

Republican antagonism – These include:
· Obstruct any and every change that President Obama is trying to bring about (even if it means selling one’s soul to corporate business interests in order to thwart Obama);
· Criticize everything that Obama says nationally or internationally, including, his body language (his well-mannered gentle bow to Japan’s Emperor was foolishly criticized by the Republicans);
· Pray and hope that US lose where Obama makes some effort for the country (example: US effort to bring 2016 Summer Olympics to Chicago);
· Belittle a prize of the stature of Nobel Peace Prize;
· Pooh pooh due diligence performed by American President in arriving at some key policy decision (example: the thorough decision making process regarding troops surge in Afghanistan);
· Criticize rescinding of US decision to deploy anti-missile shield in Poland and Czech Republic.

It is so unfortunate that the list of mess (of major issues; minor issues are too numerous to be enumerated) left behind by Dubya and his cronies is so long. It certainly is not something to be proud of for any president (who has the slightest sense of self-esteem, shame and achievement).

The worst and the most damning legacy of Bush-era is the systemic and structural failure of the financial system of Wall Street which was presided over by (the obstinate pro-Republican) Alan Greenspan. Following the disastrous economic downturn the band-aid response that was crafted by Bush’s economic advisors was no less shameful and inadequate.

On top of Bush-era’s long list of mess, Obama is trying hard to implement his election campaign promises. Obviously, his plate gets crowded with too many items. Sensing this, the defeated and humbled Republicans are trying to pounce upon each and every opportunity regardless of whether or not it makes any sense.

Somehow surprisingly the brunt of Republican attacks is largely being borne by President Obama himself. The other Democrat personalities don’t seem to be getting involved or pitching in early enough in responding to and/or rebutting the Republican salvos. This is bringing additional pressure on the President.

Moreover, Obama was initially pushing for the best outcome of any policy change initiative brought about at Capitol Hill or at international stage. However, he is realizing that more often than not the politicians – be it Republicans or Blue Democrats – give a damn for the good of the masses or the country; their first priority is self-preservation and self-perpetuation, rest everything is secondary.

One hopes that the powers, which apparently subsist in and operate from levels beyond what human imagination can fathom, will provide the necessary force and support behind the well-meaning efforts of the current US president because it is unimaginable, to a sane and rational mind, that the US president is not acting for the best interests of United States. One will have to wait to see whether the good intentions won in the long run or the kitchen sink politics of Washington prevailed!

AFTER DELTA FLIGHT 253 INCIDENT – IT IS TIME TO PULL UP SOCKS RATHER THAN REPUBLICANS’ DISGUSTING GAME OF POLITICAL NAME CALLING!!

Alas this world is imperfect, this grim reminder one gets from the stupid recriminations one can see or hear taking place between the Republicans and the Democrats over the failed bombing attempt aboard Delta/Northwest Airlines Flight 253 to Detroit from Amsterdam.

Instead of making useful contributions towards what needs to be done to protect the world from the radicals, like the Nigerian Umar Farouk Abdulmutallab who tried to blow up the Delta flight, the Republicans have launched in to nonsensical tirades to make some political capital out of this incident. They are trying desperately and, albeit, clumsily to malign President Obama (and his administration).

However, much to the chagrin of the said intellectually stunted Republicans they are getting egg back on their faces as some American TV channels are immediately pointing out the appalling inaction/gaffes of Bush and folks of his administration which has brought US to this pass. But the increasingly frustrated moron Republicans suffer from selective amnesia when they try to throw dirt on their political opponents.

But then that’s one of the downsides of democracy in that the party out of power tries to cut its nose to spite its face without realizing how much harm it may be causing to the country in the process.

Adding to this nonsense these days are the oftentimes stupid/off-the-point discussions of some half informed anchors (of American TV channels) who seem to be steering the discussion according to their personal political inclinations (and their agendas). These schmuck anchors are indeed utterly disgusting!

Anyway, more important than the schmuck American politicians and/or TV anchors is path forward for the international community in the light of what happened on Flight 253. Following points seem to need urgent attention:

· As the Foreign Minister of Yemen mentioned, his country needs international help in fighting Al-Qaeda. US, EU need to provide Yemen the necessary wherewithal in this respect as early as possible.
· Al-Qaeda’s central planning cell most probably still operates from Af-Pak border and this cell may be coordinating its actions with its cells in other countries, e.g., Yemen. Therefore, pressure must be continued to disrupt the central cell, including kicking the Pakistani asses to continue their operations in Waziristan and other areas bordering Afghanistan.
· The wily double-faced Pakistanis must not be allowed to get distracted by the so-called request from the Taliban to get former cricketer Imran Khan to mediate. These are red herrings across the trail.
· The Saudis need to act on the sleeper cells in their country and in this regard they need to coordinate their actions with their western allies, especially, US and Yemen (if the Saudis don’t consider this below their dignity).
· Stricter check of people of certain religious/ethnic backgrounds got to be put in place without drum beating about it to the world. Flight manifests need to be scanned for such people before the flight leaves and anybody appearing suspicious should be subjected to secondary/tertiary checks.
· Former top calibre counter-terrorism personnel from countries, like, India, Israel, UK should be brought in to train the US, Canadian, western countries immigration personnel in scanning and screening techniques – both visual and otherwise. The western immigration personnel, especially, the Caucasian personnel have little knowledge about names, characteristics of these ethnic groups.
· The aforementioned experts will scrutinise and look for potential radical elements before he/she boards a flight.
· Of course, full body scanners, specially trained sniffer dogs (dogs who can sniff certain chemical substances, i.e., PETN) need to be brought in use at various airports ASAP.
· Last but not the least the intelligence agencies need to pull up their socks. In the case of Umar Farouk Abdulmutallab the American and western intelligence agencies - in particular, the British - surely dropped the ball.

Flight 253 was definitely a wake up call to people who may be getting a bit complacent. Political bickering and crude attempts to make political capital (like the Republicans are trying to do) will not help. On the other hand, coordinated, concerted actions on the part of the international community can certainly help in fighting the scourge of religious radicalism. Let saner elements join hand in this ongoing battle of attrition!

WANNA MAKE QUICK BUCK? SLEEP WITH A CELEBRITY AND SELL YOUR STORY!!

The other day some one, who is passing through hard times owing to job loss, asked me if there was some quick mitigation possible. I asked that person, “Have you slept with any celebrity, like, Tiger Woods?” (I could pose such a question because of my cordial and friendly relations with that person.)

That person responded innocently, “No, I haven’t; moreover, I am a male and I am straight”!! When he continued to look at me askance, I explained to him the background as to why I asked him that seemingly frivolous question.

I gave him a low down on the current media interest in women who had allegedly slept with Tiger, and the reported attempts made by those women to encash their ‘stories’. He looked disgusted, and I nodded in silence conveying complete agreement.

What disgusted him and I was the fact these women – being labelled by media as mistresses of Tiger – slept with the top golfer on their own volition. And, now they were making frantic efforts to auction their stories to make a fast buck before the public interest waned. These women, at least most of them, clearly knew that they sleeping with a married man and that there was almost NIL possibility of any ‘real’ romance and ‘happily ever after’ scenario.

The point that jumped out and begged to be asked: Are these type of women not some kind of slimy, scheming, leeches who look for potential preys and get laid by celebrities to ‘lay’ a foundation for a potentially salacious story saleable at a later date should such an opportunity came by?

Does this not amount to ‘prostitorting’? Are they not some kind of dangerous celebrity poaching vultures looking for an opportunity for a ‘kill’?

Regular hookers, prostitutes or call-girls operate with their clients strictly on a contract basis – ‘you sleep with me, you pay for it in some form’. Simple! In these transactions NO mushiness is assumed from either party or any offered! There is no element of ‘affair’ in these trysts!

But in case of the trysts married celebrities have with their so-called mistresses, the sales pitch these so-called mistresses offer to their 'stories' is that they had an ‘affair’, a ‘fling’. By bringing in the ‘affair’ angle, they subtly try to differentiate themselves from the regular hooker or a prostitute. There is an attempt to bring in the element of ‘romance’.

But are these so called mistresses also not some sort of a slut, probably a diabolical slut? Were they not spreading their legs for some kind of gratification – be it having been piled on by a ‘celebrity’, or for some gift or some favour? Did they REALLY think the married celebrity was having an AFFAIR which had possibilities of ‘happily ever after’?

No way! The ‘mistress’ knew, that celebrity knew, that they both were having a good time on the side! And, for any one knows in the world, the ‘mistress’ probably had already been compensated too with favours, gifts, money, whatever, during their so-called ‘affair’! If they really thought there was some hope of a permanent relationship, then they were plain stupid, naïve!!

This is precisely what is disgusting – these celebrity poaching vultures bide their time for making a ‘kill’ with their story of an ‘affair’, and when the opportunity comes they encash their tales with all the spice of mushiness, romance, steamy conversations, how good that celebrity was in the bed and so on!

The media understandably tries to keep up the celebrity ‘affair’ frenzy, because it helps in selling their stuff, it becomes a talking point. The public quickly reaches for these stories and reads them with interest. (But the stupid public hardly bothers to read or comprehend how their politicians sold their souls to big lobbying firms, corporate entities for favours and blocked some legislation which would have brought some relief to the masses in general!!)

One is not trying to justify what Tiger did as a married man – as a single he could screw as many women as he wanted! But the point one is trying to make is that these so-called mistresses are worse than the regular hookers, or prostitutes or call-gals.

Does Nature, or do laws of karma bring some different (harsher) form of retribution for these women?