golden parachutes and corporate ladders
One of the most interesting bits of information revealed in our cover focus on CEO compensation is that companies that were broadly viewed as having a positive culture (Best places to work) outperformed the broader market. Crowdsourcing firm Glassdoor created a broad measure of a company’s culture and examined performance. Their list of 10 companies with the best cultures for 2016 have nearly all performed well. While many are household names with their own unique fundamentals like Facebook (FB) and Google (GOOG), others making the list like online real-restate portal Zillow (Z) and cloud-based wellness software firm MindBody Inc. (MB) are up more than 50% for 2016.
In August, we also highlighted spin-off investing, which has proven to be a profitable strategy over the last decade. Since July 1, the Guggenheim Spin-Off ETF has advanced 10%, outperforming the S&P 500, which is up about 5% since July 1. The Bloomberg Spin-Off Index is up 22.77% for the year vs. 10.28% for the S&P 500.