Walgreens to push its employees into private healthcare exchange and CEOs salaries to be subject to pay ratio rule.
Walgreens joins other large employers to make health care changes
Walgreens will make sweeping changes to its company backed health programs due to Obamacare. Walgreens, who has 160,000 employees, will require them to shop for coverage in a private health insurance marketplace. According to the Wall Street Journal, the change is due to rising health care costs as well as compliance issues. Other large employers moving to private exchanges include IBM, Time Warner, Sears and Darden restaurants. Experts indicate that, in most cases, employees will be bearing a larger share of the overall cost in the future.
US homebuilders increase construction
US homebuilders increased construction in August on the most single-family homes in six months and requested permits to construct even more in future months. The Associated Press reports that single-family homes starts rose 7 percent last month to a seasonally adjusted annual rate of 628,000, despite the increase in mortgage rates. Builders sought 627,000 permits to construct future single family homes, 3 percent more than in July and the best pace since August of 2008.
Jamie Dimon outlines simplified JP Morgan structure
Jamie Dimon told staff that “simplifying” JP Morgan was at the forefront of the bank’s response to a wave of regulatory probes, ahead of a $6 billion settlement for the “London Whale” trading episode. According to the Financial Times, JP Morgans' attempt to sell its physical commodities business and the decision to stop selling student loans were part of its switch to a simpler structure. The Global Legal Post reports that JP Morgan has added about 3,000 staff to strengthen its system of controls. Staff members have undergone approximately 750,000 hours of training to improve compliance.
SEC unveils CEO pay ratio rule
US corporations will need to disclose how their CEO’s paycheck compares to that of the average worker under a proposal set to be unveiled by the SEC on Wednesday. CNBC reports that the CEO pay ratio rule will allow investors to identify whether a company’s compensation model is too top heavy. The US Chamber of Commerce and the Center on Executive Compensation vehemently oppose the rule. The rule comes five years after the collapse of Lehman brothers and was one paragraph tucked into the lengthy Dodd-Frank law.
Chinese tycoon attacked by unemployed man
A disgruntled knife-wielding unemployed man attacked China’s second-richest tycoon, Zong Qinghou, after the tycoon refused to give the man a job. The Financial Times reports that the founder of Wahaha was accosted near his home. Violent crime rates are very low in China and wealthy people rarely have bodyguards. Growth of the income for the wealthy in China has been significant in recent years while growth in the income of the average family has slowed. The wealthy earn 23 percent of China’s total household income, while the average family has an annual income of $2,100.
Starbucks enters gun debate
Starbucks CEO, Howard Schulz, announced Wednesday that guns are no longer welcome at Starbucks. According to USA Today, Starbucks acknowledges that in states in which it is permissible to carry guns, they will not be taking the guns away from their patrons. Starbucks, however, has tried to portray its image as a good global citizen, and it believes that by stating its preference for no guns, it is doing the right thing. Schulz acknowledges, however, that it may chase away many pro-gun advocates.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.