Four Drexel LeBow alums were recently listed in PBJ’s 2013 class of 40 Under 40: Evan Urbania ‘06, founder and CEO of ChatterBlast Media; David O’Malley ‘97, chief operating officer of the Penn Mutual; William Shipp ‘98, vice president of business development at Wells Fargo; and Steven Wittenberg ‘98, director of legacy planning at SEI.
Mark Stehr, Ph.D., associate professor of economics, is quoted in a WSJ article about states loosening liquor laws in hopes of raising more revenue.
“It brings in a bit more revenue and has no measurable effect on traffic fatalities,” Stehr said. The only areas where the move did lead to higher revenues, he has found in his research, were places surrounded by dry counties or states, where alcohol sales were very limited or not allowed.
A Businessweek article about Richard Schulze, who will soon become a Best Buy chairman emeritus, quotes LeBow’s David Becher, Ph.D., associate professor of finance.
Becher says the move will be different for Schulze because he retains an ownership stake in the company. “There will be more issues there, because he has more vested interest in the performance of the firm.”
Bloomberg Businessweek published an article about LeBow’s announced C-Suite Co-op, reporting that “MBA students at Drexel University’s LeBow College of Business will get an opportunity next year that other B-school students only dream of: a shot at working in the corporate C-suite.”
Interim Dean Frank Linnehan is quoted in the article. “Unlike traditional internships, the co-op will have students work on projects that may have the ear of the chief executive officer,” he says.
The Philadelphia Business Journal covered Drexel LeBow’s announcement that future full-time MBA students will compete for C-Suite Co-ops. Interim Dean Frank Linnehan says this will make the program a “destination MBA.”
“We want you, even in California, to think about the opportunity to come back to Philadelphia and then work at a co-op back in California,” he says.
New finance research suggests that CEO merger bonus payouts may not be all that shady: bonuses tend to be paid only in low-synergy transactions involving less-desirable companies that may not otherwise be sold, or to compensate CEOs for the fact they’re likely to lose their current job.
“There is always this cynical view of CEOs and CEO compensation. We’re actually coming at it from a different side of the” equation, says Eliezer Fich, Ph.D., associate professor or finance and a co-author of this research study.
Frank Linnehan, Ph.D. interim dean of LeBow College, appeared in a 6abc story on the announced merger of US Airways and American Airlines. “When you have less competitive pressure, prices have greater opportunities to fluctuate,” Linnehan says, “so in the end, it may actually hurt the consumer.”
An article by GlobalPost says that the Monte dei Paschi di Siena bank — a pillar of Italian finance — has seen its reputation unsettled by a bailout and a subsequent mismanagement scandal that is casting a long shadow over the country’s upcoming general elections. A Drexel LeBow expert says the most pressing concern is the deep flaws that have been exposed in Italy’s banking system.
“For the Italian market it has come as a big shock,” said Marco Airaudo, assistant professor of economics. “What it has shown is that there is something behind the curtain, it’s political and it shows that the way things are done is problematic.”
A Financial News article cites research co-authored by Elizer Fich, Ph.D. associate professor of finance, into the effects of merger bonuses for CEOs.
The article says: “Mergers and acquisitions bankers are often criticised for being incentivised to push through a deal, regardless of its merits. Many company chief executives would appear to share the same incentive, according to new research, with close to $200m in deal value left on the table as a result.”