1. Do you have a “Million Dollar Mindset”?

    September 25, 2010 by

    At the annual convention of The National Speakers Association, in Orlando, FL., one session was restricted to speakers whose gross income exceeded one million dollars (would you like to be part of that group?). A summary of the characteristics of those attending was shared in a separate break-out session.  All of the million dollar mindset characteristics are important and of course collectively they are extremely powerful. These characteristics have been developed into a self-assessment which is posted in the members’ area of the BPIR.com website.  

    The self–assessment will help you to gauge the intensity with which you are striving to achieve your goals.

    For each statement below assess your attitude or motivation using the following intensity / effectiveness scale.

    Click here to download the self assessment.


    • The higher your score the closer you are to developing a million dollar mindset
    • Areas ranked as “1” or “0” should be looked at carefully. Perhaps you need to enlist the help of others to help fill in the weak areas or to provide training.

    For the full self-assessment join the BPIR.com . We have over 60 different self-assessment tools to assess your processes, systems and functional areas.

    Neil Crawford

  2. Is Your CEO Worth His Pay?

    August 16, 2010 by
    Due to public pressure on Wall Street CEOs to lower top management compensation and following Obama’s administration plans to order large cuts in executive compensation at companies that have received federal bailout funds many executives received a $500,000 pay cap and others received a very large pay cut, for example in 2008 Jamie Dimon, the CEO of JPMorgan, made over $35 million but in 2009 he made “only” $1.3 million.

    Does this mean that the CEOs were over-valued or in other words they were not worth it? This    would indeed be the opinion of most people.  However, this may not be correct according to a new research done by Dr. Candie Chang, a senior finance lecturer in the School of Economics and Finance at Massey University

    Chief executives are worth their pay

    Dr Chang Candie

    New research suggests the whopping pay packets of many chief executives may not only be justified but vital to ensure business success.

    An analysis of share market responses to chief executives leaving their jobs shows if the company has been performing better than competitors the market reacts more negatively to the news of the chief's departure in anticipation of shareholder wealth loss.

    Dr Candie Chang, a senior finance lecturer in the School of Economics and Finance, says her research indicates that a good chief executive officer is worth his or her high salary, bonuses and stock options, despite the somewhat jaundiced public view of high profile excesses revealed during the company collapses of recent years.

    Dr Chang's research paper, called CEO Ability, Pay, and Firm Performance, is due to be published in the United States journal Management Science this year. She studied 298 chief executive departures in the United States in the decade from 1992. She says her findings suggest that the stock market associates better prior performance and higher pay with a more capable chief executive. Not only that, but the higher the pay of the departing chief executive compared to other executives in the company, the more negative the stock price reaction.

    “The recent financial crisis and the storm over the pay of executives in financial firms have brought the questions of whether chief executives meaningfully add value to the companies they manage, and whether their pay reflects ability or power, into sharp focus,” Dr Chang says.

    “Collectively, our results provide strong support for the notion that firm value and performance are not simply outcomes of the firm’s core competency, product markets, or luck. Chief executive talent matters and is rewarded internally and recognised by external markets.”

    She also studied where chief executives end up when they leave their companies and found two extremes. The first was that many do not have management positions within three years but at the other end, several move up to bigger firms or better paying jobs.

    “We find that chief executive officers are more likely to 'move up' when the market reacts more negatively to their departure,” Dr Chang says. “The results suggest that the managerial labour market associates higher pay and better prior performance with higher chief executive ability and rewards them accordingly.”

    Firms that lost a highly paid chief executive suffered a slump in performance after the departure if the prior performance had been good and the stock market reacted negatively to the departure.