All GLG News Analyses Filed Under: Corporate Treasury & Finance

Nitish GroverPrincipal, OwnerNitish Grover and Associates

CEO pay - The debate spreads - Implications for US companies doing business in India

May 29, 2007

Analysis of:CEO pay not always a function of performance | www.businessstandard.com

The  salaries  of  corporate  chiefs  have  always  been  a  subject  of  reporting, conjecture and debate. Government's in India  have  also  been  for  long  in  a  control  mindset  and  till  a  little  over  a  decade  back  the  salaries  of  corporate India  were  controlled  by  Government. The  entire  scenario  has  since  changed  and  Indian  corporate  salaries  are  just  as  high  comparatively  as  those  in  Europe  or  America. A  recent  speech  by  the  Prime  Minister  has  started  a  debate  on   salaries. Coming  as  it  does  in  the  background  of  the  options  and  salaries  debates and  disclosures  in  the  US  this  is  bound  to  shakeup  the  salary  structure  in  India  and  have  some  echoes  across  the  oceans  in  America. This  analysis  takes a  look  at  some  aspects  of  the  salaries  verses  performance  debate.

George PughPresidentGeorge Pugh & Co

No Harman Trying

May 24, 2007

Analysis of:Unusual Buyout Offers a Piece to Shareholders | online.wsj.com

On April 26, 2007 Kohlberg Kravis Roberts & Co. and Goldman Sachs Group agreed to buy Harman International for $7.8 billion in cash: $120 a share, a 17% premium. The wrinkle is that shareholders would be allowed to exchange their holding for shares in the new privately owned company. There have been other instances such as Kindercare, but ordinarily they don’t build them into the original offer. These so-called stubs would be traded OTC if at all, and would be subject to reduced regulation. Stub equity allows a buyout firm to put more of its own money to work on a deal, by reducing the amount of capital it needs to raise from other buyout funds, and the need for other partners. The concept is interesting, but it says a great deal about other issues as well.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Hedge Funds - Regulation, Valuation and Compliance

April 23, 2007

Analysis of:Hedge funds hold firm, regulators wary | economictimes.indiatimes.com

Regulators are worried  about  the size and operations of hedge funds. As per a IOSCO  document the size of hedge funds in the fund  of  funds  domain has grown from $83 billion in 2000  to $500 billion  in 2006. Total  hedge  fund  assets  under  management  on  a  global  basis  are  estimated  by  various  reports  at  over $1.5 trillion.

This  analysis  looks  at  the  problems  being  created  by  funds  of  funds  and  the  areas  in  which regulations  are  being  proposed. The  main  area  of  regulation  is  expected  to  be  in  valuation  and  liquidity. Another  major  area  is  the  extent  to  which  regulations  should  be  uniform  across  international  frontiers.

ERM strategy for 2007: boom or bust?

February 12, 2007

Analysis by: GLG Expert Contributor

Analysis of:Breaking Down Barriers to (International) Growth | www.businessfinancemag.com

As economic growth slows on a global basis during 2007, its effect will be felt by companies around the globe. However, the economic consequences won’t be shared equally.

This analysis looks at how an enterprise risk management strategy can help companies minimize the impact from the myriad of risks inhibiting global growth.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Stock Options - Will SEC enforcement effectively combat the disease and malady

February 9, 2007

Analysis of:SEC near to a formula for options fines | www.ft.com

The  last  several  years  have  seen  stock  options  in  the  news. First  they  were  in  the  news  as  a  novel  compensation  instrument, then  as  a  tax  planning  instrument  and  now  for  the  last  one  year  as  a   accounting  restatement  reason.

Backdating  and  springloading  just  continues  to  hog  the  accounting  and  enforcement  limelight  like  few  other  accounting  events  have  for  such  a  prolonged  period  of  time.

This  analysis  takes  a  look  at  the  steps  the  SEC  is  taking  and  whether  these  will  deter  managements  in  future  from  resorting  to  schemes  to  alter  and  mislead  financial  results  in  future.

This  analysis  also  argues  that  legal  remedies  will  not  be  sufficient  deterrents,  and  the  quality  of  financial  reporting,  audit  and  ethics  will  have  to  undergo  a  sea  change  across  the  board  to  prevent  the  recurrence  of  such  major  adverse  influences  on  corporate  profits.

Will ESOARs Soar?

February 1, 2007

Analysis by: GLG Expert Contributor

Analysis of:SEC Clears Market-Based Way To Value Staff Stock Options | online.wsj.com

The Office of the Chief Accountant has cleared the use of a new derivative instrument for determining the value of employee stock options in recognizing option compensation expense.

While the instruments (ESOARs) are an interesting exercise in developing fair values, one might wonder if it wouldn't be cheaper to just use an option pricing model.

The traps of Tax-Efficient Cross-Border M&A

January 29, 2007

Analysis by: GLG Expert Contributor

Analysis of:Tax-Efficient Cross-Border M&A | www.businessfinancemag.com

If cross border mergers are driven by the creation of non trading structures designed to minimize current tax liabilities there are potentially serious negative consequences to the success of these mergers.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Derivatives - The Changing World of Corporate Finance

January 10, 2007

Analysis of:Fed's Soften Structured Finance Stance | www.cfo.com

Derivatives  have  been  under  pressure  by  regulators  ever  since  it  was  found  that  they  could  multiply  risk  in  multiples  and  be  used   to  camouflage  the  true  financial  health  of  companies.

Bernanke  in  his  recent  speech  recently  spoke  of   the  challenges  before  the  financial  system  and  how  such  instruments  can  effect  the  risk  paradigm  in  the  financial  system. In  this  background  the  reported  move  of  the  Fed, SEC  and  other  regulators  to  go  slow  in  monitoring  of   counterparty  risk  by  banks  signifies  a  level  of  comfort  with  such  derivative  instruments.

This  analysis  looks   at  the  possible  effect  of  the  reported softening  stand  on  derivatives  on  the  corporate  risk   management  scenario  and  their  use  as  a  investment  vehicle  by  hedge  funds  and  alternative  investment  vehicles.

Robert HeimPartnerMEYERS & HEIM LLP

SEC Stock Option Backdating Probes Heating Up – Apple Computers the Latest to be Hit by the Backdating Scandal

January 5, 2007

Analysis of:Apple ‘falsified’ files on Jobs’ options | www.ft.com

1. Companies are completing their internal investigations of stock option backdating.

2. Settlements with the SEC and the Department of Justice are likely to be reached in the first quarter of 2007.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Executive Compensation Practices Claim Victim - A Indicator for Corporate Performance

January 5, 2007

Analysis of:Home Depot Chief Nardelli Steps Down | www.ft.com

Executive  pay  is  under  scrutiny  and  pressure. Shareholders, regulators  and  activists  all  want  to  control  this  vital  aspect  of  corporate  governance  and  performance.

Pension  funds, investors  and  regulators  are  all  putting  different  kinds  of  pressure  to  keep  taps  on  the  quantum, timing  and  nature  of  compensation.

The  departure  of  Nardelli  who  increased  sales  and  profits  at  Home  Depot  but  not  shareholder  value  in  terms  of  stock  prices  is  to be  viewed  in  this  context.

This  analysis  takes  a  look  at  this  increasing  pressure  on  executive  compensation  and  its  possible  fallout  effects.

Previous Page : 12345678910Next21 to 30 of 321