Is Business Broken?

Join Fiona Scott Morton, a leading economist from Yale, Glen Weyl, founder of the RadicalxChange Foundation, and Florian Ederer, a market policy expert from BU, as they tackle the challenges of common ownership. They discuss how major investors shape competition, raise prices, and stifle innovation. The trio explores innovative solutions, critiques existing regulations, and emphasizes the need for shareholder voting reforms. They also confront political barriers in financial regulation, aiming for clearer ownership structures to benefit consumers.

Florian Ederer, an expert in antitrust and competition at BU Questrom, dives into the contentious issue of common ownership—where the same big investors hold stakes in competing companies. He explains how this phenomenon impacts competition and innovation, questioning whether these firms maintain their competitive edge or simply boost costs for consumers. Ederer also highlights the implications for income inequality, revealing the disproportionate benefits for wealthier investors. Regulation challenges and the future of market dynamics take center stage in this enlightening conversation.

In this engaging discussion, Jim Rebitzer, a Professor at BU Questrom School of Business, and his brother Bob Rebitzer from Manatt Health, tackle the slow pace of healthcare innovation. They explore how financial incentives stifle progress and highlight a unique gait-altering technique as a solution to knee surgery. The conversation delves into social values influencing healthcare advancements, critiques the patent system, and suggests innovative funding models for pharmaceuticals. Their insights illuminate the urgent need for systemic reform in the industry.

In this conversation, Peter Fasolo, former CHRO at Johnson & Johnson, and Charlie Tharp, a professor at BU Questrom School of Business, delve into the complex landscape of executive compensation and its impact on employee morale. They discuss how pay structures influence workplace culture and motivation, the urgency for pay transparency, and its role in addressing gender disparities. The duo also highlights innovative models to enhance fairness and engagement, underscoring the pressing need to align executive pay with company performance and employee satisfaction.

Ana Albuquerque and Charlie Tharp, esteemed professors at BU Questrom School of Business, dive into the murky waters of CEO compensation. They question how much of a CEO's pay relies on luck versus merit and whether current pay structures are fair or excessively complex. The duo explores board dynamics, external market influences, and the risks associated with executive pay. They also discuss how peer evaluations impact compensation and the crucial role of transparency and alignment with broader societal goals.

 Today's episode dives into the voice that shareholders have and how executives are paid, including large institutional shareholders. What does that relationship look like between investors and companies, and how does this affect CEO pay?Host Curt Nickisch chats with Bob McCormick, Executive Director at the Council of Institutional Investors, and Charlie Tharp, Professor of the Practice at Boston University Questrom School of Business. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Charles Tharp, a leading business professor and former CEO, dives into the contentious world of executive compensation. He explores how CEO pay has ballooned compared to average worker salaries and the factors fueling this disparity. Tharp discusses flaws in governance that allow such massive paychecks, including shareholder skepticism and the implications of legislation like Dodd-Frank. He also highlights the impact of stock buybacks on executive pay and suggests strategies for enhancing worker earnings through education rather than just targeting executive pay.

How do we reconcile the protection of free speech with the need to prevent harmful misinformation from spreading online? Is it even possible to strike a balance?Host Curt Nickisch speaks to Marshall Van Alstyne, the Allen and Kelli Questrom Professor in Information Systems at Boston University Questrom School of Business; Nadine Strossen, Professor of Law at New York Law School and former president of the American Civil Liberties Union; and Michael Masnik, CEO and Founder of Copia Institute and its publication Techdirt. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Marshall Van Alstyne, an expert in information systems from Boston University, and Gordon Pennycook, a psychologist from Cornell University, discuss the alarming rise of misinformation online. They explore how social media amplifies falsehoods through cognitive biases and the urgent need for improved transparency in digital spaces. The two also propose innovative solutions like in-situ data rights to empower users, delve into the role of AI in combating disinformation, and examine the complex relationship between misinformation, market dynamics, and free speech.

Last week's episode features the first part of a panel centered around the Business Round Table's pledge five years ago to redefine the purpose of a corporation, by create value for all stakeholders, not just shareholders. Today, we continue where we left off, and look into the future. How should boards operate now? What should they taking into account differently in the coming years?Host Curt Nickisch speaks to Lynn Paine, Professor at Harvard Business School, Om Prakash Bhatt, the former chair and CEO of the State Bank of India, Anthony Allott, former chair and CEO of Silgan Holdings, and James Orlikoff, president of Orlikoff & Associates Inc. Learn more about your ad choices. Visit podcastchoices.com/adchoices