One of the big American companies that has
already repaid its bailout funds has still not awarded cash bonuses to some of its top executives
opting instead to give them shares and stocks. Wells Fargo gave its CEO approximately $10 million
in stock a statement that was released recently said. Some of the other top officials at Wells
Fargo received shares worth approximately $5 million each.
A company spokesman said part of the problem was the fact that other firms are actively
recruiting their top talent and they needed to do something to retain their best people.
“Wells Fargo executives, at all levels, are being increasingly and aggressively recruited by
competitors,” said the head of the board’s human resources committee in a statement. “A key to
retaining that talent for the long- term is to compensate our senior leaders competitively.”
Although Wells Fargo has repaid the money they received in bailout funds, they are still giving
away stock in spite of the fact that many other top business leaders are saying cash bonuses are
the way to retain quality people.
The world’s top rate golfer is facing more companies backing away from
financial ties as AT&T has cut their business relationship off with Tiger Woods bringing the
number of companies that has cut ties with him to three. The latest parting of ways comes after
Woods partial admission to marital infidelities.
In a statement released by AT&T company spokesman wished was well by reiterated the fact that
they would end their relationship with him after signing a multiyear deal at February that would
place the AT&T logo on what’s his golf bag among other endorsements. One expert in the
field of media relations is amazed that the number of companies that are parting ways with woods
seems to be picking up speed,
“It’s like this is a snowball rolling and picking up speed,” Brad Adgate, head of research at New
York advertising company Horizon Media Inc., said in a recent interview. “I thought that now
things would simmer over.”
There are some companies however that are standing by the golfer like Nike and Upper Deck.
This past twelve months was the year in
which over 20 million Americans collected unemployment insurance and the national unemployment level
reached 10%. Even though the pace of people applying for unemployment insurance benefits has dropped
in recent months, experts tell us that that is no indication that the overall unemployment picture
is getting that much better. In fact they are saying that the rate of long-term unemployment
continues to grow.
Companies will be hesitant to hire workers until they are absolutely sure that the economic
recovery is sustainable. In fact government officials are expecting that the unemployment rate
will fall to 9% but remain that way for much of 2010. One expert said that while fewer people
are getting laid off, fewer people are able to find work and that is essentially the
There are also close to 5 million people receiving extended unemployment insurance benefits that
are due to run out at the end of February. One of the other alarming statistics states that for
every job available in the United States at the present time there are six applicants looking
Democrats in both the house and senate are
clear on the fact that they want health care reform. When they return in January there won’t
be any problem on some of the big ticket items that both want but one of the bigger areas where
there could be some trouble is taxes.
Although the House and Senate both have provisions that would tax houses that have higher incomes
to pay for these reforms, the two sides would go about it differently. The House would impose a
surtax on households making over $500,000 a year that would help to pay for some of the
health-care reforms. On the other side of that issue the Senate would impose a tax on Medicare
on individuals that make over $200,000 a year. There are still other people who think employer
related health insurance plans should be taxed to help cover the cost of the new reforms. Taxes
is shaping up to be one of the bones of contention of the new health reform. Many of the new
proposals won’t take effect until later in the decade like 2013.
Finally there was some good news on the
economic front recently with a number of people applying for unemployment insurance falling to a 17
month low. There were around 432,000 people who started the process to claim unemployment for the
week ending Boxing Day, and that number was down 22,000 from the week’s revised estimates.
Some experts had predicted the number of claims to go up during the Christmas season and the news
that they actually went down was welcomed among many experts.
“It’s encouraging to see that we’re continuing to move in the right direction
toward 400,000 claims,” said an economic analyst at Wells Fargo. “We’re
certainly off the highs we saw earlier this year.”
An analysis of the number of people filing for unemployment insurance benefits has seen the
numbers steadily declining since March and this is of course good news for the economy.
However, there is the danger that the good numbers are merely representative of people falling
off the normal unemployment rolls and onto extended benefits. Congress passed legislation last
week to extend the unemployment benefits.
Even though there is a segment of gadget
lovers that are waiting with baited breath for the Apple tablet to be unveiled, experts in the field
are saying that it won’t take the tech world by storm the way the iPod did.
Tablet computers are not something new and even Apple had a previous gadget that had a five-year
lifespan but failed to make a lasting impression on the world of information technology. Other
companies that have attempted to bring similar devices into the marketplace have met with the
same fate because generally smart phones are the choice of most consumers.
According to spokesman from the Apple company, the new tablet will be able to run all the
applications of an iPod or smart phone but be better suited to reading e-books.
Still some people who are experts in the gadget field remain skeptical.
“The Apple tablet will have a beautiful user interface, it will have a pleasing aesthetic
and will be marketed well,” said a senior research analyst . “But at the end of the
day, we’re still talking about a smart phone with a bigger screen.”
There may be some good news for the nation’s
unemployed oming in 2010 as a new report says that up to 20% of the nation’s employers are
seeking to hire a new full-time people in the new year. One expert in the employment field had this
“There have been many signs over the past few months that point to the healing of the U.S.
economy, especially the continued decrease in the number of jobs lost per month.”
And the statistics seem to point towards a cautious optimism from employers since many of them
have no plans to further decrease the number of employees they have and 11% of the employers
surveyed said that they actually plan to add a number of part-time jobs as well.
Two of the areas that will see hiring in the new year are information technology and financial
services. However, there are a number of firms that will even hire in the manufacturing
industry according to the survey. Even though the jobs will be full-time many of the employers
are seeing the need for freelancers and contractors to keep the costs down.
A published report is stating that GMAC is
close to receiving a third round of bailout money from the federal government. Citing people that
are familiar with the case, the Wall Street Journal has reported that GMAC is close to asking for
additional billions of dollars on top of the money they have already received which also totals in
According to people who are close to the situation, the additional money will allow GMAC to
continue on with its home lending unit which will otherwise be close to bankruptcy without the
“As we have previously stated, GMAC has been conducting a strategic review of its business
and evaluating options to address the challenges at ResCap and the mortgage operations,”
said a GMAC spokeswoman . “Critical objectives in the process would be to take actions
that position GMAC for improved financial performance and to repay the U.S.
Even though GMAC was placed under various stress tests by the federal government they continued
to lose billions of dollars in the first months of 2009.
The Federal Bureau Bureau of prisons has
confirmed that convicted swindler Bernie made off has been moved back to his cell after being in the
prison infirmary for the past 10 days. He is currently serving his sentence at a prison in North
Carolina according to the Federal Bureau of prisons.
He was transferred on December 18 after complaining of dizziness to the prison infirmary where he
was subsequently treated for hypertension. After his initial transfer during the summer rumors
swirled around the media that he in fact had terminal cancer although this proved not to be the
In August the Bureau of prisons released a statement denying the report that the convicted
swindler had a terminal disease and just as recently as last week they released another
statement backing that up. Madoff pleaded guilty to 11 counts related to the Ponzi scheme that
he was the mastermind of and was sentenced to 150 years in prison last March. He was sentenced
in New York and subsequently transferred to a medium security prison shortly afterwards.
The national Highway Safety Administration
has said that General Motors will be recalling 22,000 Corvette cars because of leaking roofs. The
recalls involve cars built between 2005 at 2007 and stem from a problem with the adhesive that was
used to seal the removable roof to the frame of the car.
According to the national Highway safety administration a safety problem could be present with
the defective part.
“If there is a complete separation, the roof panel may detach from the vehicle,” a
statement read. “If this were to occur while the vehicle was being driven, it could strike
a following vehicle and cause injury and/or property damage.”
For those with the affected automobiles, they will be instructed to go to the dealerships where a
new part will be installed to correct the problem. GM is wasting no time with the looming recall
as they expect it to begin next month and people who think that their cars might be affected can
follow the link in this story to find out more about where to go.