Deeb Salem, a former Goldman Sachs trader, says that after making the company in excess of $7 billion in 2010, his $8.25 million raise was not enough compensation. Questions: 1. What percentage drop was Salem’s 2010 raise as compared to his 2009 raise? What percentage drop was Salem’s 2011 raise as compared to his 2010… Read more »
Posts Categorized: Accounting Principles
Separation of Power
Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. Questions: 1. Who are the backers of this corporate governance issue and why do you think they are… Read more »
To compete or not compete – Upside or Downside?
Noncompete clauses are now appearing in far-ranging fields beyond the worlds of technology, sales and corporations with tightly held secrets, where the curbs have traditionally been used. Questions: 1. What industries have recently seen more noncompete clauses? 2. What clause were you most surprised at? 3. What are the costs and benefits of noncompete clauses?… Read more »
Something doesn’t add up
As more companies become aware of the tax opportunity that Bermuda, the Cayman Islands and the British Virgin Islands offer, more are taking advantage of it. According to the I.R.S. in 2004, companies with foreign income said 8 percent of that income came from those remarkable islands. But in 2010, the figure was 11 percent…. Read more »
Is a Tattoo a Forever Thing?
According to a 2012 Harris survey, one in five U.S. adults has a tattoo, Interestingly, removing tattoos has also become a growing trade, as one in seven of these tattooed individuals express misgivings with their body art choices. In fact, some spend thousands of dollars for several searing laser sessions. Questions: 1. How many removals… Read more »
Maybe not such a good business plan.
In Crumbs Bake Shop’s most recent Form 10-Q filed with the SEC, the company disclosed that its auditors, Rothstein Kass, “expressed substantial doubt about our ability to continue as a going concern.” Questions: 1. Since the IPO of Crumbs, how much has the stock dropped? 2. Explain the statement that Crumbs published in its 10-Q… Read more »
Tax is not so sweet!
According to the New York Times, a new study indicates how taxes might be used to curb consumption of sugary drinks and suggests that applying a tax based on the amount of calories contained in a serving rather than its size would be more effective. Questions: 1. What are the relationships that the study mentioned… Read more »
Remember: Cash is King!
According to McClatchy News, one in three buyers of U.S. homes is paying cash, which is a record high number. Florida topped all states for all-cash home sales, at 55 percent of cash sales during the first three months of this year. That’s on a par with 54 percent for all of last year and… Read more »
IBM Guards Age Data
For approximately a decade, IBM has been giving fired employees information detailing a severance package that asks them to waive age-discrimination claims. This package also included a page listing the job titles and ages of workers being let go, until recently. Now IBM is withholding the information and instead offering the workers with the option… Read more »
Questions about Sales Tax
Is a Twix bar food or candy? In 24 states, a Hershey’s bar is candy but a Twix isn’t. That’s because Twix contains flour, and in those states — which all share a sales tax code — candy is defined as being flour free. And since groceries aren’t taxed, you’ll pay taxes for the Hershey’s,… Read more »