The Windfall Profit Tax – A Legislator’s Hamster Wheel

I. Introduction

Surprise! 
In 2005, Big Oil[1] again turned one of the larger profits it has seen
in recent years, with companies like Exxon Mobil boasting fourth
quarter numbers 27% greater than last year's profits (which, by the
way, were nothing to sneeze at).[2][3]  And why shouldn't we be
surprised?  After more than a year of paying a sky-high premium at the
pump and in the home, it is plain to see that the oil industry is not
sharing the burden of the high price of fuel with the consumer.  Led by
Senate Democrats, a bill has been proposed to impose a one-time-only $5
billion windfall tax on big oil to help offset the country's more than
$300 billion deficit.[4]

II. Implications

There is no question that Big Oil can afford the hit.  Five billion
dollars is chump change spread among corporations who routinely keep
tens of billions of dollars

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Stakeholders and the Corporate Boardroom: Can Trade Unions help promote Corporate Social Responsibility?

I. Introduction

A meeting
at the UNEP headquarters in Nairobi, Kenya is focusing on the global
trend to include more stakeholders in the corporate governance
structure. The aim of this meeting is to promote links between
environment sustainability, trade unions, and corporations. These
trends are being followed in the U.S. as evidenced by the Securities
and Exchange Commission proposal to allow large shareholders a direct
voice in the nomination of board of directors.

II. Issues

On
January 15-17th 2006, at UNEP Headquarters in Nairobi, the first annual
Trade Union Assembly on Labor and Environment took place.[1] The aims
of the conference were to reinforce the social and labor dimension of
environmental conservation and sustainable development and to
strengthen the relationship between UNEP and the world of labor.[2]
This gathering recognizes that trade unions have a huge role to play in
helping corporations achieve their goals of becoming socially
responsible citizens.

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The Bankruptcy Exception to State Sovereign Immunity

On January 23, 2006, the U.S. Supreme Court handed down its decision in Central Virginia Community College v. Katz
[1], holding that a state cannot assert its sovereign immunity as
grounds to block the avoidance of a preferential transfer to a state
agency under § 547(b)
of the Bankruptcy Code [2]. At the heart of the matter was whether
Congress overstepped its constitutional power when it enacted § 106(a) of the Code, which waives state sovereign immunity in bankruptcy.

However fair the outcome may be, the rationale of the Court cannot
be reconciled with its prior decisions addressing Congress's ability to
waive state sovereign immunity under its Article I powers. Indeed the
Court's theory of implied waiver does little to justify why there
should be a "bankruptcy exception" at all. On its face, Katz
may be expected to open the door to broader Congressional abrogation of
state sovereign immunity in … Read the rest

Executives are Getting the Green and Shareholders are Seeing Red

The beginning of 2006 usually gives pause to look back on the past year and reflect.  When CEOs look back on the past year their vision may be obscured by the stacks of cash that were bestowed upon them.  It was reported last week that despite small stock gains and slowing growth executive pay continued to swell in 2005. [1]  Always
a hot topic, and often over 400 time the amount earned by rank-and-file
employees at large companies, executive pay is on the top of many
people’s watch lists for 2006.[2]  This article
will take a look at how some justify executive pay, what recourse
shareholders have to stop executives being paid too much and the
proposal the SEC has made regarding disclosure of executive
compensation.

Compensation On the Rise

 

Although
much of the data of 2005 executive pay will not become available until
March
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