Corporate profits, as a percent of GDP, have doubled in the past 40 years. But where’s that money going? Not to hiring, paying higher wages or investing in equipment. Corporations are instead using their profits to further reward shareholders. And that strategy, argues billionaire investor Nick Hanauer, is killing America’s economic growth.
American Airlines and US Airways announced Thursday that the two companies will merge, creating the world’s largest airline. The $11 billion deal will affect some 187 million passengers who fly the two airlines annually. Jeffrey Brown has the latest on the new alliance. Continue reading
At an annual shareholders meeting in Florida Tuesday, JPMorgan CEO Jamie Dimon apologized for the company’s recent losses and survived a pair of shareholder votes on his pay and job responsibilities. Judy Woodruff discusses the turmoil — including news of an FBI inquiry of the company — with Dawn Kopecki of Bloomberg News. Continue reading
Shareholders publicly rebuffed Citigroup Tuesday at an annual meeting, rejecting a $15 million CEO pay package. Margaret Warner discusses the implications amid a national debate over income equality with Anne Simpson of the California Public Employees’ Retirement System and Russell Miller of Clearbridge Compensation Group. Continue reading
Seven states have passed legislation officially recognizing companies with a conscience. Called benefit corporations, or B Corps, the firms strive to make a positive impact on society while also turning a profit. Economics correspondent Paul Solman reports as part of his Making Sen$e of financial news series. Continue reading
General Motors, a longtime cornerstone of American industrial power, filed for bankruptcy protection Monday morning and embarked on a broad restructuring, paving the way for the struggling automaker to receive another $30 billion in taxpayer aid. Continue reading
Question: If General Motors is “restructured” (either through the bankruptcy courts or outside the bankruptcy courts), will the shareholders lose all of the stocks they currently own? Or, as long as GM is a viable company traded on the NYSE, … Continue reading
Blackstone Group, a private equity firm, acquired Equity Office Properties Trust for $39 billion on Wednesday, the largest-ever private equity deal. Two business experts discuss the deal and the future of private equity in the business world. Continue reading