UNIT 4

Name, Title

Name, Title

Name, Title

Preview : The New Millionaires

Silicon Valley, San Fransisco’s capital of the hi-tech industry, produces dozens of new millionaires every day. Listen to two of them talk about life and complete the table below.

Ask Ss if they know anyone in business who is a millionaire speaking and complete the table.

Speaking

Ask Ss to discuss the question in paris / small groups. Who do they think deserves to be a millionaire and why? Some co-operatives try to limit be difference between the best and worst paid employees of their organization. What do Ss think about attempts to lessen remuneration differences between levels of employee?

VOCABULARY 1

Replace the italicized words below with words and phrases from the box

Pension reject critism advice compensation legal action bonus make a fush

1. Large companies are not used to critism from shareholders.

2. Our senior manages receive a bonus if they met their targets.

3. The sharehoulders don’t accept the remuneration committee’s

4. The CEO lost his legal action demanding compensation after the board of directors asked him to leave.

5. The consultants advise the company not to increase the CEO’s pay.

6. The new CEO negotiated a lavish pension

7. The compensation dicided not to offer a ‘golden hello’.

8. The newspapers always cause make a fush when large companies make their executive pay deals public.

Complete the sentences with the correct form of multi-part verbs from the box. Which verbs need an object?

Point out set up look after call on buy up step down get ahead go under break down call off

1.If we hadn’t bought up so many companies we wouldn’t be so short of cash (type 2)

2.The shareholders feel that he should really step down because of the mess the finances are in. (type 2)

3.We had to call off the meeting because the export manager missed his plane(type 2)

4.Our sales executive will call on you netx week to show you our new range of products. (type 2)

5. Could you please look after the new recruit, she doesn’t know where anything is.

(type 2)

6. Negotiations Broke down after an hour because they just couldn’t find a compromise.

If turnover is a low as last year we’ll probably go under

8. The only way to get ahead in this company is to work harder than anyone else

9. We finally set up a subsidiary in Spain last year (type 2)

10. As she pointed out in her presentation, competition is rising and prices are falling.

A controversial court case

Cantor fitzgerald ( be) has been tragically famous since September 11th 2001, when it lost 658 of its staff in the World Trade Center. Recently , it (appear) Has appeared back in the news in Britain vecause one of its staff (take) has taken it to courtnfor breach of contract. Steven Honkulak (be)was the managing director of interest rates derivatives, which is highly stressful job but he(earn) earned €400,000 plus bonuses. However his boss, Lee Amaitis who (work) has worked with the company for many years is a very tough and agrgressive man. Mr Honkulak claims thar Mr. amaitis, regularly(threaten) to dismiss him and (cause) caused him so much stress that he (start) started to drink and take medication. He finally(leave) left the company and(ask) asked for £1m compensation. The company defended itself by saying “Mr Amaitis(contribute) contributed to the success of this company with his vision and hard work. Mr Honkulak howver(want) wanted the rewards of the senior position but his weaknesses made im unable to cope with the job. The judge awarded Mr Honkaulak £1m, saying that there are limits beyond which no employer should go.

Do you think Mr Honkulak deserved to receive £1m compensation? Why?/ why not?

Work in pairs. What recent events and developments have there been in your county?Think about the following.

Politics

The economy

Celebrity life

Sport

Fashion

Dilemma: Success at what price?

Brief

A better price, a large UK supermarket chain, is in financial difficulties. The departing CEO, Mark Crawley, had promised that dramatic transformations would lead to higher returns and rising share price. However, he began by signing a disastrous merger deal and since then the share value has halved! In spite of this, he awarded himself several bonuses on top of his £790,000 a year salary and leaves with golden parachute worth over £2m. The outraged shareholders have decided to work closely with the board in choosing his successor from the following short list of candidates.

Marjorie Sweetman, successful CEO of a chain of department stores that was losing money when she took over five years ago. She believes in people and steady progress. She would cut growth targets by half. She hasn’t asked for a golden parachute and would agree to bonuses linked to performance. She does, however, expect generous share options and a salary of £650,000. Her strategy will mean a short-term fall in dividends.

John Creed, currently MD of a company famous for training Europe’s top managers. If recruited, the share price would shoot up in the short-term. He is the most expensive candidate at £750,000 p.a. He wants a contract for a minimum of ten years and a guaranteed $2.4m pension deal not linked to performance. He believes he can succeed in 100 days and plans dramatic changes in policy and staff.

David Preston, current Chief Operating Officer. His pay is £650,000 plus bonuses and share options. He would expect a big salary increase but proposes, however, not to replace himself as COO and do both jobs. He wants a generous pension when he leaves and plans to increase shareholders dividends at once.

Task 1

Work in groups. You are the shareholders look at the candidates and discuss the advantages and disadvantages of each in terms of pay and potential performance.

Task 2

Prepare to present your ideas to the class and make it final recommendation.

Task 3

Present the arguments for your chosen candidate to the class

Write it up

Write a formal memo to the board comparing the candidates and making a final recommendation.