Finance Blog number 1

Mining giant BHP Billiton said Wednesday that it would take its $38.6 billion cash offer for Potash Corp. directly to the shareholders, a day after the world’s largest fertilizer producer rejected unsolicited takeover bid.

The Australian company’s offer remains valued at $130-per-share offer, representing a 16% premium to Monday’s closing price.

"We firmly believe that Potash Corp. shareholders will find the certainty of a cash offer, at a premium of 32% to the 30-trading day period average, very attractive, and we have therefore decided to make this offer directly to those shareholders," said BHP chairman Jac Nasser in a statement payday loan.

Shares of Potash (POT), which spiked almost 28% Tuesday following the rejection, gained 3% Wednesday.

Meanwhile, BHP’s (BHP) stock, which slipped 2.4% Tuesday, lost another 3% Wednesday. 

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A survey of 500 tech and finance industry executives predicts that Mark Hurd's replacement as CEO at Hewlett-Packard Co. with either be an inside candidate or one from International Business Machines Corp.

About 43 percent of respondents said the most qualified replacement for Mark Hurd would come from those two sources, according to the survey by executive search firm Cook Associates which is expected to be published on Monday .

The survey was made available early to the New York Times.

The Times reported that among individuals named for the job Todd Bradley, who runs HP's PC business, and Steve Mills, who runs IBM's software business, tied as the most likely choices.

Hurd actually tied with Ann Livermore, HP's corporate technology chief, for the next best choice, as unlikely as it is that will happen.

The former CEO resigned on August 6 in the wake of sexual harassment charges brought by former actress and HP contractor Jodie Fisher. An internal investigation cleared him of those charges but found that he hadn't lived up to the company's code of conduct.

Hurd has reportedly agreed to pay a settlement to Fisher related to her accusations.

Chief Financial Officer Cathie Lesjak, 51, is acting as CEO on an interim basis. Lesjak is a 24-year veteran of the company who has served as HP’s CFO and as a member of the company’s Executive Council since January 2007.

To read more of the Business Journal's coverage of Mark Hurd's career and sudden resignation click here.

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The CEOs of top performing local public companies received much bigger pay raises in 2009 than the CEOs of top performing companies in 10 major cities nationwide, according a new study.

The study by BDO USA LLP, a professional services firm, looked at the relationship between the change in total CEO compensation (including salary, bonus, stock options, etc.) between 2008 and 2009 and the total shareholder return of the company over the same year.

It found that the 25 top performing D.C.-area companies posted a median increase in shareholder returns of 85 percent, significantly lower than the median for top performing companies nationwide of 98 percent. Yet the CEOs of those local companies got a 37 percent increase in compensation, compared to just a 5.5 percent increase for CEOs of top performing companies nationwide. Local CEO pay hikes were second only to those of Atlanta CEOs, who received a 45 percent bump in compensation.

The CEOs at the 25 worst-performing public companies in the D.C. area also fared a bit better than their under-performing brethren nationwide.

Shareholder returns at the lowest-performing local companies decreased by a median of 5 percent, while their CEOs took a 4 percent pay cut — equivalent to 80 percent of the decline in shareholder returns. Nationally, the bottom-performing companies saw shareholder returns drop 10.5 percent, while CEO pay fell 9 percent — equivalent to 86 percent of the decline in shareholder returns. This means local under-performing CEOs didn’t receive as big a pay cut, relative to their performance, as underperforming CEOs nationwide.

“Tying pay to company performance is critical now more than ever given the increased scrutiny both from regulators and shareholders,” said Randy Ramirez, Northeast regional leader of the compensation and benefits practice at BDO in a statement. “Our analysis shows that top performing companies in Washington, D.C., are more rigorous than their poor performing counterparts when it comes to developing a performance-based strategy for CEO compensation. However, there are still some notable gaps. Performance cycles do not coincide with changes in company tactics and performance measures do not accurately reflect changes in operational focus.”

The Washington Business Journal conducted a smaller compensation study in May which found that CEO compensation at local financial services companies declined 39 percent in 2009, despite an improvement in company performance.

Here are the breakdowns on CEO pay for performance at companies in the 10 largest cities nationwide, according to the BDO study:

Top 25 performing companies

City / shareholder return / CEO pay increases

1. New York / 243 percent / 10 percent
2. San Francisco / 155 percent / -14 percent
3. Houston / 152 percent / 5 percent
4. Dallas / 135 percent / 6 percent
5. Miami / 109 percent / 2 percent
6. Boston / 86 percent / 1 percent
7. D.C. / 85 percent / 37 percent
8. Atlanta / 74 percent / 45 percent
9. Chicago / 63 percent / 4 percent
10. Los Angeles / 58 percent / 10 percent

Bottom 25 performing companies

City / shareholder return /CEO pay increases

1. San Francisco / 4 percent / -9 percent
2. Miami / -1 percent / 0 percent
3. D.C. / -5 percent / -4 percent
4. Atlanta / -7 percent / -25 percent
5. Chicago / -10 percent / -9 percent
6. LA / -11percent / 2 percent
7. Dallas / -13 percent / 0 percent
8. Boston / -13 percent / -10 percent
9. Houston / -19 percent / -10 percent
10. New York / -27 percent / -17 percent

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Kevin Landry had to give up his San Diego apartment because he couldn’t afford the rent after his federal unemployment benefits were cut off in early June.

Since then, Landry and his cocker spaniel, Curley, have been sleeping in his 1991 Dodge Dakota in a church parking lot. He sold his possessions and applied for food stamps in order to survive.

And even though President Obama signed a measure Thursday that extends benefits through November, Landry knows he won’t get his $475 weekly check anytime soon.

The last time Congress allowed the benefits to lapse, it took a month for him to start getting payments again.

"I’ll just have to scrape by," said Landry, who lost his job as a credit manager for K2 Skis in September 2008. "There’s nothing I can do about it. I’ve learned to deal with it."

Though Congress has finally pushed the deadline to file for federal extended insurance through Nov. 30, it could take weeks before the jobless start getting their checks again.

Nearly 2.9 million people ran out of benefits in the nearly two months it took Congress to extend the filing deadline beyond June 2.

But just when the checks start hitting bank accounts and mailboxes again depends on the state.

The long delay wreaked havoc on the state unemployment insurance technology that process the payments. States often have to call in experts to reprogram the computer systems, which are an average of 22 years old.

And state officials have to make sure that the unemployed were eligible to receive benefits during the interim. If the jobless stopped looking for work or earned income during June or July, they may not qualify.

"States will move as quickly as possible to resume [federal unemployment] payments, but it will not happen overnight," said Rich Hobbie, executive director of the National Association of State Workforce Agencies. "Because the program has lapsed for over a month, state workforce agencies need to ensure that claimants qualify for all retroactive payments."

The unemployed should check their state agency’s website for updates or wait for a letter with instructions on restarting their payments and claiming the retroactive sum, said Judy Conti, federal advocacy coordinator at the National Employment Law Project Low fee payday loans.

Some states asked the jobless to continue sending in the forms certifying they were eligible for payments. The unemployed in those places will likely see their checks sooner.

But it will still take time, said Steve Meissner, a spokesman for the Arizona Department of Economic Security, which told its 64,000 claimants who were affected by the lapse to keep filing.

"We will do it as quickly as we can," he said, adding the state is still waiting to receive official guidance from the federal Department of Labor. "There are always some ambiguities because unemployment law is pretty complicated."

The checks, however, can’t come too quickly for the jobless. For many, it’s the only way they can afford housing, utilities, food and car payments, Conti said.

Vicki Wolf of Lebanon, Pa., is anxiously awaiting her $393 weekly check so she can pay her rent and buy essentials, such as shampoo. The former call center supervisor, who continued sending in her forms to the state, is behind on all her bills because she hasn’t had any income since June 5.

Pennsylvania officials said in a statement that those who kept filing their paperwork should receive payment within two weeks. The rest of the more than 200,000 state residents who lost their benefits should submit their claims online as soon as possible.

Wolf, at least, is one of the luckier ones. She starts a new job at a trucking company on Monday, though she won’t see her first paycheck until mid-August. Until then, she’ll have to walk 45 minutes to work from her home.

"I don’t have money to buy gas to put in the car," she said. 

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Florida International University’s Herbert Wertheim College of Medicine secured its ninth clinical partner by signing an affiliation agreement with Cleveland Clinic Florida.

The 150-bed hospital in Weston has 922 employees, including 166 physicians on staff. The nonprofit admitted more than 12,000 patients last year.

With the agreement, fourth-year FIU medical students could get clinical training from specialist physicians at Cleveland Clinic Florida.

“We are very excited to be affiliated with such a respected institution that has an excellent national reputation,” FIU College of Medicine Dean Dr. John Rock said in a news release same day payday loans. “Cleveland Clinic is world renowned for providing quality health care at an affordable cost, and we are proud to partner with them to train the next generation of doctors.”

The state university’s medical program also has affiliation agreements with Baptist Health South Florida, Jackson Health System, Mount Sinai Medical Center, Miami Children’s Hospital, Mercy Hospital, Leon Medical Centers, Broward Health and Memorial Healthcare System.

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Denise Rehg, president of Culture Works, has stepped down to take a new position.

Rehg, who headed the Dayton-based arts funding, services and advocacy group for nine years, has taken the position of assistant senior vice president for major gifts with the United Way of Central Ohio, according to a press release.

Until a new president is found, Kathy Hollingsworth will be the interim president and chief executive officer, effective Aug. 2. Hollingsworth co-founded Innovative InterChange Associates, a Dayton consulting company low rates payday advance.

Culture Works provides some general operating support to the largest performing arts and arts education organizations in greater Dayton including: Cityfolk, Dayton Ballet, Dayton Contemporary Dance Company, Dayton Opera, Dayton Philharmonic Orchestra, The Human Race Theatre Company and Muse Machine, among others.

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Pennsylvania has received a dozen AmeriCorps grants totaling $9 million, which will create up to 2,200 community service positions in the state, the Department of Labor & Industry said Friday.

PennSERVE: The Governor’s Office of Citizen Service will distribute seven state grants totaling more than $5.3 million, which will create more than 1,700 positions. Five national grants totaling more than $3.9 million will also be awarded to multistate programs operating in the state, with the support of PennSERVE, which will create up to 480 additional AmeriCorps positions, the department said.

“These grants create thousands of opportunities for individuals to make a difference in their communities through citizen service,” Labor & Industry Secretary Sandi Vito said. “From tutoring and mentoring, to renovating residences and community cleanup, the work carried out by these organizations will have an immediate and positive effect on our neighborhoods and residents.”

Grants funded through PennSERVE have been awarded to the following, which serve counties in the local area:

• Jumpstart for Young Children Inc. (Allegheny and Philadelphia counties), $320,453 grant, will create 174 positions, AmeriCorps members serve in preschool settings, including Head Start, faith-and community-based centers to engage students in learning activities

• Trustees of the University of Pennsylvania, $50,722 grant, will create 287 positions, college students will serve as AmeriCorps members at nonprofit organizations to support local education and other human needs that target various beneficiaries throughout the state, including Chester, Delaware, Montgomery and Philadelphia counties.

• City Year Inc., $2,415,000 grant, will create 210 positions, AmeriCorps members provide in-school tutoring and after-school services in Greater Philadelphia area schools.

• Teach For America, $802,497 grant, will create 330 positions, AmeriCorps members will provide classroom instruction and enrichment activities focused on overcoming the achievement gap for schools through education and volunteer generation in under resourced communities in Philadelphia County cash till payday advance.

National direct-funded grants have been awarded to the following, which serve counties in the local area:

• HOPE Worldwide, $298,101 grant, will create 94 positions, AmeriCorps members provide direct service and perform capacity-building activities in three primary programmatic areas that focus on academic enrichment, environmental stewardship and community rebuilding in Delaware County.

• Health Federation of Philadelphia, $1,198,486 grant, will create 94 positions, the National Health Corps promotes health careers and health education in Pennsylvania, Illinois and Florida. Members assist uninsured individuals with accessing health care, resources and assist with enrolling the uninsured in insurance and/or drug prescription programs.

• Philadelphia AIDS Consortium, $374,070 grant, will create 60 positions, AmeriCorps members will provide health education and support services and mobilize volunteers for programs that target low-income minorities living with, and affected by, HIV in Pennsylvania, New Jersey, Delaware and California.

• Temple University of the Commonwealth System of Higher Education (Philadelphia), $247,619 grant, will create 90 positions, AmeriCorps program addresses health literacy needs of elders, elderly immigrants and refugees through service learning, civic engagement and tutoring. Project assists elderly immigrants and refuges in communication with health-care providers. Members support the target population’s access to health services and strengthen immigrant-serving organizations’ ability to address the needs of this growing population.

AmeriCorps was able to add 500 people to its ranks in Pennsylvania last year through the help of funding from the American Recovery and Reinvestment Act.

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The city of Scottsdale will hold funeral services June 8 for City Councilman Tony Nelssen, who died May 26 after a battle with cancer.

The services will be start at 9 a.m. Tuesday at the WestWorld center in North Scottsdale.

The city is reminding those attending the services that temperatures could reach 110 degrees, so they should dress appropriately. The event is being held outdoors.

Nelssen, 59, had served on the council since last June.

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Emerson Electric Co., the electrical products maker seeking to acquire Chloride Group Plc, fell the most in more than a year after second-quarter sales trailed estimates and data showed Chinese manufacturing was slowing.

Ferguson-based Emerson dropped $3.44, or 6.4 percent, to $50.18 in New York Stock Exchange composite trading, the biggest percentage decline since Feb. 17, 2009. The shares have gained 18 percent this year.

Revenue for the quarter was $5.14 billion, compared with an average estimate of $5.22 billion from 12 analysts surveyed by Bloomberg. Net income climbed 8.6 percent to $405 million, or 53 cents a share, from $373 million, or 49 cents, a year ago.

"Revenues came in light, which is different than most diversified industrials," Joel Levington, a managing director of corporate credit for Brookfield Investment Management Inc. in New York, said in an e-mail. Concern that Chinese manufacturing is slowing pulled some stocks lower, "and China has been an area of growth," he said.

Emerson last week made a $1.1 billion (723 million pound) offer to buy Chloride, Britain’s largest maker of backup power equipment, to expand its network power division.

Ferguson Chief Executive David Farr declined to discuss Emerson’s efforts to acquire Chloride, citing U.K takeover panel rules, on a conference call with analysts Tuesday.

"We are investing in the emerging markets, we are investing in new products, and we are positioning ourselves for what I would call a slow, steady recovery," he said.

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Stock Building Supply on Monday closed on its acquisition of National Home Centers Inc., an Arkansas-based supplier of construction materials that had been operating under Chapter 11 bankruptcy protection.

Raleigh-based Stock had issued a stalking-horse bid in late February to purchase National Home Centers Inc. A bankruptcy court judge approved the sale April 2.

Ken Greene, a Stock veteran, will serve as market manager for the company’s Arkansas operations.

The expansion adds to Stock’s 19-market footprint.

Financial terms of the deal were not released. It was not immediately known how many employees and stores the acquisition would bring to Stock.

A Stock spokeswoman did not immediate return a phone call seeking comment.

Stock’s expansion comes after a tumultuous two-year period for the company. In response to a stalled housing market, the building material supplier slashed more than 5,000 jobs and closed more than 100 stores as part of its own bankruptcy reorganization last year. As part of that process, British giant Wolseley PLC sold a majority stake in stock to The Gores Group, a Los Angeles-based private equity firm that provided the financing to bring Stock out of Chapter 11 protection.

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