What we’re reading (1/14)
“Just How Common Is Corporate Fraud?” (DealBook). “It suggests that only about a third of frauds in public companies actually come to light, and that fraud is disturbingly common. Mr. Dyck and his co-authors estimate that about 40 percent of companies are committing accounting violations and that 10 percent are committing what is considered securities fraud, destroying 1.6 percent of equity value each year — about $830 billion in 2021.”
“Workers Lose Ground To Inflation Despite Big Wage Gains” (Wall Street Journal). “A historically tight labor market pushed up average hourly earnings by 4.6% in December from a year earlier, the Labor Department said this week, compared with a 6.5% annual inflation rate in the same period. Likewise, average hourly earnings rose 4.9% in December 2021 from a year earlier, compared with a 7% annual inflation rate.”
“5 Unintended Consequences Of The EV Revolution” (Vox). “That’s all about to change. In the next few years, electric vehicles will replace many cars with internal combustion engines, and the White House has called for half of new vehicles to be electric by the end of the decade. This transition is a critical part of adapting to climate change, since EVs don’t produce tailpipe emissions and will reduce the world’s dependence on fossil fuels. But electric cars will also be an awkward fit for today’s transportation infrastructure, and not just because gas stations might one day go the way of horse stables.”
“A Battle Between Disney And Activist Peltz Brews. Here’s How The Situation May Unfold” (CNBC). “Sometimes a board observer position can be beneficial, particularly for investors who do not have a lot of board experience and are less likely to be a regular contributor to board discussions. But offering Peltz a position as a board observer is like saying to Whitney Houston, ‘You can join the band, but you are not allowed to sing.’ There is no way that Disney thought for a second that Peltz would accept this offer, and there is no way he should have accepted it.”
“Goldman Sachs Plans To Nudge Out An Additional 800 Staffers By Skimping On Bonuses After Already Laying Off More Than 3,000 Employees, Report Says” (Insider). “After cutting more than 3,000 jobs on Wednesday, Goldman Sachs is planning to oust about 800 more employees in a less direct fashion, company insiders say. Another round of employees is expected to quit in the coming weeks after Goldman Sachs issues annual bonuses, according to sources close to the company who spoke to the New York Post. The forthcoming bonuses are expected to be ‘so skimpy that disgusted recipients will pack up and leave,’ the sources told the Post.”
