Who will pay to restore Moore, Oklahoma?
As the dust begins to settle following a devastating F-5 tornado in Moore, Oklahoma, the question remains of how to pay for the damage and restore the city? According to CNBC, the money will come from various sources including insurance, governmental aid, and assistance from charitable organizations. The tornado in Joplin, Missouri which occurred in 2011, saw relief agencies providing about $32 million for immediate assistance. Additionally, Oklahoma received federal aid for another devastating tornado in 1999 of about $67 million while Joplin received $350 million of federal aid. But insurance companies will provide the greatest assistance with $2.8 billion of payouts occurring in the Joplin scenario.
Median CEO pay increases to $9.7 million
CEO pay has been increasing in the last three years, according to the Associated Press. CEO pay fell for two straight years during the Great Recession but rose 24 percent in 2010 and 6 percent in 2011. Pay structures, however, have been more closely aligned to company performance than in the past. Five of the 10 highest paid CEOs are in the entertainment industry with Leslie Moonves of CBS being the highest at $60.3 million. Median CEO pay was $9.7 million.
Chinese investment in US hits all time high
Chinese investment in the US is at an all-time high, according to CNBC. The largest Chinese investment in the US is in movie theaters, AMC Theaters. AMC Theaters is a huge entertainment conglomerate that the Chinese bought for $2.6 billion in 2012. Total Chinese investment in the US hit $6.5 billion in 2012 and is expected to surpass that level in 2013. The U.S. was the single biggest recipient of Chinese investment abroad in the past year.
ESPN cutting jobs
ESPN started laying off a few hundred workers on Tuesday, primarily in response to the higher prices it is now paying to air games. According to the Wall Street Journal, ESPN is a key profit engine for its owner, Walt Disney Co. It is the biggest of Disney’s cable networks that account for 69 percent of the company’s segment operating income. ESPN just struck an eight-year deal with major league baseball for $700 million per year and pays $1.9 billion annually to air Monday Night Football.
H&M clothes made in collapsed Cambodian factory
Swedish fashion retailer H&M said on Tuesday that some of its clothing was produced in a Cambodian factory in which 23 people were injured in an accident on Monday. According to the Wall Street Journal, a third party had placed the manufacturing there and they were unaware of the lack of controls and safety at the factory. The company has demanded a meeting of all of its Cambodian manufacturers regarding the outsourcing of production. Cambodia has 15 million people and 400 garment factories. Critics say it is unlikely the H&M did not realize that its manufacturing had been outsourced.
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.