Monthly Archives: June 2016

What is the Oxfam says about UK

That made Britain one of the most unequal countries in the developed world and contributed to the vote for Brexit, the charity said.

Its analysis found that about 634,000 Britons were worth 20 times as much as the poorest 13 million people.

Oxfam has urged Prime Minister Theresa May to help close the gap between the “haves” and the “have-nots”.

The charity’s report analysed data from Credit Suisse and found that the richest 10% of the UK population own over half of the country’s total wealth, with the top 1% owning nearly a quarter (23%). The poorest 20% share just 0.8% of the UK’s wealth between them.

The report said many people in the UK felt locked out of politics and economic opportunity.

“Whatever your views on Brexit, the referendum brought divisions within our country to a head, with many people expressing distrust and disconnection with political processes and voting for change in the hope that it would improve their economic position,” Oxfam said.

The charity welcomed Mrs May’s recognition of the need to reform corporate culture and proposed a series of measures for the government to adopt.

They include:

  • delivering on the Prime Minister’s pledge to give workers more representation on companies’ boards
  • Giving firms incentives to improve workers’ skills and encouraging benefit claimants to undergo training and education
  • Adopt pay ratios of 20:1 so that the best-paid person at a company can earn no more than 20 times the salary of the lowest-paid worker
  • tackling corporate tax avoidance and ending UK-linked tax havens.

Rachael Orr, head of Oxfam’s UK Programme, said: “Inequality is a massive barrier to tackling poverty and has created an economy that clearly isn’t working for everyone. While executive pay soars, one in five people live below the poverty line and struggle to pay their bills and put food on the table.”

Ending unscrupulous practices must be a central element of the government’s plans to reform the economy, she said.

“That means closing wage gaps, incentivising investment in companies’ staff and making sure they pay their fair share of taxes,” Ms Orr said.

A Downing Street spokesperson said the government had made changes such as bringing in the National Living Wage and reforming the welfare system, but admitted that more needed to be done to help both the poorest in the UK as well as families struggling to make ends meet.

The Best Way if Herbalife Stake to 50%

Currently, Icahn’s company, Icahn Associates Holding LLC, owns 21% of Herbalife’s outstanding shares and he has permission from his company to buy up to 35%. He announced Tuesday that he wants to increase that stake to 50%.

Herbalife’s stock was up about 2% in after-hours trading, but it wasn’t immediately clear if Icahn’s comments triggered the move.

Icahn also argued that Herbalife would be better off as a private company to avoid some of the public scrutiny it has received.

“I think Herbalife is a lot better off private,” Icahn said Tuesday at the Delivering Alpha conference in New York.

Icahn took a jab at activist investor and billionaire Bill Ackman, who has traded verbal punches with Icahn over Herbalife’s business model. Since 2012, Ackman has bet against — or “shorted” — Herbalife’s stock, labeling the company as a pyramid scheme, a sophisticated scam which is illegal.

“I think Ackman is smart, but I think he’s absurd to have a major short position,” Icahn said.

“No professional [investor] would really want to be short a company where” Icahn owns 21% of the stock, he said. Translation: Don’t bet against me.

Herbalife(HLF) had been in hot water up until July when it agreed to pay $200 million to the U.S Federal Trade Commission after a two year investigation into its sales practices.

The settlement cleared Herbalife of any illegality, but the FTC made it clear that the company would have to be more transparent to its distributors and consumers.

Who is Rapidly Under New Foxconn Management

Hon Hai Precision Industry of Taiwan has already begun to restructure Sharp’s personnel management system and organization in earnest since it acquired the struggling Japanese electronics maker a month ago Monday.

Sharp, the first leading Japanese electronics company acquired by a foreign company, is faced with drastic changes brought by Hon Hai, also known as Foxconn, to turn around the Osaka-based company.

At Sharp’s head office, relocated to Sakai from Nishi-tanabe as a result of the acquisition, company President and CEO Tai Jeng-wu, the No. 2 man at Foxconn, claps his hands in worship in front of a Shinto shrine on its premises before the meeting that starts at 8 a.m. every morning. Tai, 65, who was dispatched to lead the new subsidiary’s restructuring, began the practice in Taiwan and continues it in Japan.

Tai, who took the helm at Sharp on Aug. 13, studied accounting and Japanese language at the Tatung Institute of Technology established by major Taiwanese electrical and electronic equipment maker Tatung group. He joined Tatung after graduating from the institute and was dispatched to Japan as a resident official, among other assignments.

In 1986, Tai joined Foxconn and made a name for himself by succeeding in arranging a deal with Sony. He has since become Foxconn Chairman Terry Gou’s right-hand man. Gou is often in Taiwan and China, and Tai is in touch with him almost every day.

Gou has a cheerful demeanor and speaks loudly. Tai is generally considered an aide to Gou, but he has already begun to develop a management stance of his own.

Upending the system

At a management strategy meeting in late August, Sharp officials were surprised at Tai’s familiarity with the company’s operations, because he said that he would end the existing “rotation system.”

This is a personnel management practice by which young employees are assigned to three separate sections, thereby producing workers with knowledge outside their field of specialty, rather than being expert exclusively in a specific area.

The system was promoted by Sharp’s fourth president, Katsuhiko Machida, who was credited with a steep increase in the company’s earnings in the first half of the 2000s due to his avowed policy of replacing all cathode-ray tube TVs with liquid crystal display panels. Although the rotation system was identical to Sharp’s, Tai readily ended it because Foxconn usually requires workers to specialize in specific fields upon joining the company and continue improving their specialty.

An organizational reform announced on Aug. 26, exactly two weeks after Foxconn’s acquisition of Sharp, included the creation of the President’s Office to support Tai.

“The President’s Office is like the prime minister’s office, and the head of it is like the chief cabinet secretary,” a Sharp official said, because the new office is not only responsible for bundling secretaries for executives and overseeing management plans but is also tasked with putting Sharp under Foxconn’s control.

The office is staffed with 200 members and includes officials in charge of structural reforms, personnel management, legal affairs, information technology, public relations and external affairs.