The networked cost of executive pay

A recent bit of research quantified the network cost of the executive pay as well as its impact upon turnover. For instance, one finding:

Arguments have been made that even if a CEO is overpaid, a large company can easily absorb the cost. However, the researchers found that CEO pay has direct consequences for compensation at lower employee levels. That’s because the effects of CEO overpayment cascade – at diminishing degrees – down to subordinates. For example, based on their models, where one CEO was overpaid by 64 percent, individuals in his/her company at Level 2 (COO, CFO, etc.) were overpaid by 26 percent, while individuals at Level 5 (division general managers) were overpaid by 12 percent. The cumulative effect of this systemic overpayment impacts overall organizational performance and shareholder value.

The cascade impact provides financial incentive to drive preferential attachment. The more highly connected one is, the more likely one is to partake of any related overpayment.

The research also found that the perception of unfairness was key to turnover and confirms the common sense notion that employees at the lower levels have limits to the amount of inequality they will tolerate. This phenomenon will no doubt be further quantified in neuroeconomic studies.

Calling for the Mahdi

Tucked away at the bottom of a speech delivered at the United Nations, Iranian President Ahmadinejad made a religious plea for the "perfect human being" to arrive. From the full text:

"I emphatically declare that today's world, more than ever before, longs for just and righteous people with love for all humanity; and above all longs for the perfect righteous human being and the real savior who has been promised to all peoples and who will establish justice, peace and brotherhood on the planet.
"O, Almighty God, all men and women are your creatures and you have ordained their guidance and salvation. Bestow upon humanity that thirsts for justice, the perfect human being promised to all by you, and make us among his followers and among those who strive for his return and his cause."

This appears to be restatement of his expectation of the return of the Mahdi in an earlier speech to the United Nations. Presumably the delegates weren't as surprised this time around.

Bombing and redistricting

It appears Hezbollah and its ally in the recent combat in Lebanon aren't handing out reconstruction money in a fair manner.

Abou Hassan said he hadn't supported Hezbollah or Amal and received no money for his damaged home or his mother's house, which was flattened.
"It's a mafia -- if you don't support Hezbollah or Amal, you get nothing," he bellowed. "America and Iran are fighting their little war in Lebanon, and I don't get a dime for my broken house," he said...

From a military standpoint, it would benefit Hezbollah to rebuild safe houses first, where supplies could be cached in anticipation of the next round of conflict, as well as rewarding supporters.

A consequence of such a policy would also be to discourage non-supporters from staying in affected regions, and that would be reflected in any upcoming polls in Lebanon.

When Darfur rebels do not want to be saved

According to a Reuters piece dated July 14, Eritrea opposes UN intervention in Darfur. They're not a disinterested party, as they back the Sudanese Liberation Army, one of two major Darfur rebel groups. Furthermore, in May, Human Rights Watch documented an pattern of increasing attacks by rebels upon humanitarian convoys and aid workers, apparently with the intent of converting vehicles into battlefield platforms.

Given this confluence, it would seem that a major Darfur rebel group would rather that the genocidal conflict continue in Sudan, and that they perceive some gains to be had in the future given the absence of UN intervention. If so, resolving the Darfur conflict will take more than getting the Sudanese government to disarm the Arab Janjawid, many of whom appear to have been incorporated into Sudanese armed forces.