In case you missed it, let’s explore some of the most interesting stories that have emerged from Boston business schools this week.
Elon Musk’s Unusual Compensation Plan Isn’t Really About Compensation at All – Harvard Business Review
Harvard Business School faculty member George Serafeim, the Jakurski Family associate professor of business administration, recently published his insight into the compensation package Tesla shareholders awarded CEO Elon Musk this year—“likely the largest compensation package ever awarded to a CEO.”
Serafeim argues that the design of the compensation plan and its announcement were about “signaling a credible commitment to Tesla’s purpose: to become a clean energy giant that helps address climate change by transforming mobility. To get there, Musk needs not only the normal sort of investor confidence, but also for investors to buy into his radical vision for the company.”
Serafeim further explains:
“Musk’s compensation plan, with its ambitious targets for market capitalization, focuses the mind on exactly this vision. For Tesla to reach a $650 billion valuation by 2028, the market will have to shift dramatically, with electric vehicles becoming the overwhelming percentage of all new sales. That would boost Tesla revenues from both vehicles and batteries. Such a future would also likely require that Tesla’s autonomous pilot technology becomes state-of-the-art, allowing it to be used safely and widely in Tesla vehicles but also potentially through licensing by other players.”
You can read more about Serafeim’s insight here.
Finance by Day, Pro Soccer by Night – Carroll School of Management News
The Boston College Carroll SOM recently profiled Issey Maholo ’07, a polymath who spends his days as VP of prime brokerage for J.P. Morgan and his nights as goalie for the Hong Kong Football Club.
Maholo, a native of Tokyo born to a Congolese father and Japanese mother, writes, “There will be plenty of excuses you can make in life as to why you should stop doing what you love to do.” He also notes the parallels between his vocation and avocation, particularly when it comes to teamwork:
“One person can shape a game, but usually not a whole season. It’s the same in finance—someone can bring in a big mandate, but you all have to pull together to become the top bank in Asia.”
You can read more about Maholo here.
The Quest for Error-Free Care – Sawyer Business School Blog
The Suffolk University Sawyer Business School recently hosted a panel discussion sponsored by the Suffolk University Chapter of the Institute for Healthcare Improvement (IHI), which touched upon “trends in the industry, patient safety, how the patient experience has improved over the decades, job-hunting advice, and many other subjects.”
The talk featured three Boston health care leaders: Lahey Hospital and Medical Center Chief Quality and Safety Officer Dr. Judith Melin; Mass General Hospital Associate chief quality & safety officer Mary Cramer; and Professor Elizabeth Turner, a nurse-attorney whose practice focuses on health care law.
Professor Mona Al-Amin, faculty adviser to the IHI group, writes, “The importance of this event was that students learned about quality improvement in healthcare organizations. They also got to ask questions about the field. And they got to learn about career choices and what skills they might need.”
You can read all the takeaways from the discussion here.