Information wants to be free” was a phrase bandied about during the Internet stock market bubble. Often heard in corporate boardrooms and frequently appearing in publications like the Wall Street Journal, it supposedly meant that information should be accessible and cost-free to its consumers. Well, it turns out you get what you pay for. Despite […]
Harvey L. Pitt
Posted inFrom the Archive
The Principles vs. Prescriptive Rules Debate
In the movie Midnight Run, Robert De Niro plays a tough Chicago ex-cop whose refusal to take mob bribes cost him his job. Instead, he becomes a bounty hunter because, as he says, when he finds someone who’s jumped bail, he can just bring him in and “not worry about anybody taking a payoff.” But […]
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Executive Compensation: Spend It Carefully
When Lee Iacocca joined Chrysler in 1978, he immediately went to work on engineering the company’s fiscal turnaround. One of his first, and most visible, measures was announcing to shareholders that, to reduce costs, he had lowered his own salary to one dollar. When a shareholder questioned Iacocca about this drastic reduction, he responded, “Don’t […]
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Fine Print: SEC Penalty Plan Explains Price Of Fraud
In 621 B.C., the Athenian legislator Draco wrote the first national judicial code. Justice, which had previously been a private matter, for the first time was meted out publicly, through proclamation of the code and public trials. Although this was a significant accomplishment, Draco is remembered instead for the code’s stringent penalties. Athenians claimed he […]
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Sorting Through Probabilities, Possibilities For 2006
Over 500 years ago, while anchored off the coast of Jamaica, Columbus found his food supplies running low, but locals were unwilling to sell him any more. Planning ahead, Columbus noticed that his almanac predicted a lunar eclipse a few days later. On the day of the anticipated eclipse, Columbus warned the leaders that he […]
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Effective Ways For Companies To Avoid Murphy’s Law
In 1949, an engineer at Edwards Air Force Base created a harness for a rocket-powered sled designed to test how much acceleration and deceleration a human being could tolerate. Unfortunately, the test failed and the sled’s passenger was temporarily blinded. The engineer, Captain Edward A. Murphy Jr., later discovered the cause of the failure: improper […]
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Best Practices For Small- And Mid-Cap Companies
There’s an old story about a championship basketball game in the animal kingdom between the Ants and the Elephants. Late in the game, with the Elephants up by one, the Ants had possession, and were heading down the court looking to score. As the star Ant dribbled forward, the Elephant guarding him lifted his foot […]
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Lessons From The Not-So-Wonderful World Of Disney
The Walt Disney Company has transformed many engaging fairy tales and stories into fantastic animated and live-action movies. Unfortunately, over the last decade, the most intriguing Disney productions have emanated from its corporate executive suite. From the highly-publicized trial in Delaware Chancery Court regarding Michael Ovitz’s compensation and termination packages, to James Stewart’s gripping and […]
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Caveat Emptor: Merger Considerations For Public Cos.
The Latin phrase caveat emptor is certainly back in vogue. Although historians can’t pinpoint its precise origin, its appearance dates back at least to 16th century English literature. Over the years, the phrase’s interpretation has been truncated to the pithy, “Let the buyer beware.” But in its original formulation, the entire phrase cautioned that a […]
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Summertime Compliance: Responding To Changes In Climate And Enforcement
As thoughts turn toward summer vacations, and then the ultimate re-emersion into “office normalcy,” this may seem like a good time to take a break from compliance cares, litigation woes and regulatory and prosecutorial initiatives. But, alas, that might be short-sighted. While business men and women can take vacations, and relegate their problems to the […]