
Sunday, 15 September 2013
Forests and Weather: Can't see the clouds for the trees ?

Executive Remuneration - pay for performance, the myth and the reality
With the Annual General Meeting season well underway in Australia, the issue of Chief Executive and senior executive remuneration again comes into the spotlight for individual shareholders and institutional investors alike. Despite constant statements from remuneration advisers and optimistic sounds from boards, the reality is that paying the CEO more and providing extraordinary pay packages does not have any relationship to financial results for shareholders.
Investment bank, CLSA examined the executive pay of Australia's top 200 companies plotting their pay in comparison to shareholder returns. The exercise demonstrated that there was no relationship whatsoever. The only relationship which was revealed was the size of the salary often equalled the size of the company - ie big companies paid more but it made no difference to their performance. So where does this leave investors including those who have these 200 top companies in their superannuation accounts ? Certainly the need to exert greater upwards pressure on performance and downwards leverage on disproportionately generous remuneration has never seemed more justified.
Investment bank, CLSA examined the executive pay of Australia's top 200 companies plotting their pay in comparison to shareholder returns. The exercise demonstrated that there was no relationship whatsoever. The only relationship which was revealed was the size of the salary often equalled the size of the company - ie big companies paid more but it made no difference to their performance. So where does this leave investors including those who have these 200 top companies in their superannuation accounts ? Certainly the need to exert greater upwards pressure on performance and downwards leverage on disproportionately generous remuneration has never seemed more justified.
Thursday, 29 August 2013
Climate Change Insight: Impact of cooler oceans is only temporary
Researchers at UCLA in San
Diego in the United States have just released research that shows that the
cooling of eastern Pacific Ocean waters has been counteracting the warming
effect of greenhouse gases. The impact from this natural variability in ocean
cycles is responsible for the pause or “hiatus” in global warming over the last
ten years. This is not a permanent effect and will end leading to a resumption
in global warming as before.
The UCLA study examines the tropical Pacific Decadal
Oscillation, a climate cycle that occurs over the course of several decades.
Within this large pattern are the El Niño and La Niña cycles that cause shifts in the distribution
of warm water in the equatorial Pacific Ocean. While El Niño and La Niña last
only a few years, the Pacific Decadal Oscillation lasts several decades. The
Oscillation has been in a cooling phase since 1998.
When the climate cycle that
governs that ocean cooling reverses and begins warming again, the planet-wide direction
toward higher temperatures will resume.
Sunday, 11 August 2013
Social interaction: gestures and expressions are not always what they seem
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| Confused or what emotion ? |
Understanding and reading people's body language and expressions has underpinned a range of professions and marketing/human resource functions for many years. An increasing cohort of research studies however is starting to completely debunk much of these assumptions and indicate many 'rules' of body language are arbitrary instead. A number of examples place the contrast between implied meaning and actual sentiment in context: it is often commonly believed that crossed arms is a sign of defensiveness yet researchers at the University of Chicago found that the same arm-cross can also mean 'invulernability' if linked to a super-erect torso; a well known and popular notion that women show interest in a man through flipping their hair, making eye contact or adjusting their clothes should only be interpreted as a time based activity - they only use this body language to keep the man interested long enough to judge whether it's worth knowing him or not - the University of Vienna estimated that this measurement takes only 4 minutes or so.
Researchers at the University of Hertfordshire in the United Kingdom, found that fidgeting and avoiding eye contact which is often associated with dishonesty was found in equal measure in people who were otherwise honest but simply showing signs of emotional discomfort. If there is one primary message to draw from this data its simply that gut-instinct is just as effective as any other measure.
Researchers at the University of Hertfordshire in the United Kingdom, found that fidgeting and avoiding eye contact which is often associated with dishonesty was found in equal measure in people who were otherwise honest but simply showing signs of emotional discomfort. If there is one primary message to draw from this data its simply that gut-instinct is just as effective as any other measure.
Posture
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What people think it means....
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Actual science finding....
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Arms crossed:
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Defensive
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Perhaps but it can also mean invulnerable,
self-comforting or being cold.
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Hands on hips, wide stance:
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Power and/or confidence
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True
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Scratching nose:
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Deceit or misleading
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No more common for liars than truth-tellers.
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Looking up and to the right:
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Deceit or misleading
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No evidence to support this view.
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Swaggering walk:
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Confidence
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Not necessarily – can be faked.
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Averting gaze:
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Deceptive
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False, A misconception in many cultures:
could be embarrassment.
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Fidgeting:
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Embarrassed
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True
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Raised arms, chin up:
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Triumph, pride
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True in all cultures.
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Palms up when talking:
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Trustworthy
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No evidence to support this view.
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Climate change insight - sea levels fall as well as rise
A common misconception reported in the popular media about climate change science involves predictions of ice sheets melting with commensurate rising sea levels across coastlines. In many reports the impression given is that the effects are somehow uniform across the globe with dire effects. This perception and selective presentation of information is incorrect. There are several other factors and influences which occur with melting ice sheets. For example, the actual physics of large ice sheets involve gravitational effects - any large mass on Earth whether a continent or a massive ice field exerts a significant gravitational pull on water surrounding it, thus drawing the liquid towards its perimeter. When the ice melts the water is released and the sea level falls. This has been known since 1888 when physicist, Robert Woodward published his findings and was utilised again in 1976 in work by William Farrell and James Clark when calculating potential impacts from the melt of the great northern ice sheets. A second factor is the weight of ice sheets on the earth's crust - the crust is actually pushed down by the ice sheets in the Northern and Southern polar and sub arctic regions and with the current melting, the crust rebounds and rises. Hudson Bay is currently rising a centimetre a year and has been doing so since the last ice age.
There are also more complex physics impacts to consider - the volume of water and ice actually influences the Earth's rotation. The planet's balance is altered if a large ice sheet melts hence the distribution of water is altered. The melting of Greenland would shift the axis of rotation approx half a kilometre towards the ex-ice sheet. These effects mean that the levels of sea rise would be quite different across continents and countries - Scotland could see a sea fall of more than 3 metres whilst South America could see a sea rise of close to 10 metres.
There are also more complex physics impacts to consider - the volume of water and ice actually influences the Earth's rotation. The planet's balance is altered if a large ice sheet melts hence the distribution of water is altered. The melting of Greenland would shift the axis of rotation approx half a kilometre towards the ex-ice sheet. These effects mean that the levels of sea rise would be quite different across continents and countries - Scotland could see a sea fall of more than 3 metres whilst South America could see a sea rise of close to 10 metres.
Thursday, 1 August 2013
Chocolate continues to astound with its unique value
Flavonoids, the key chemicals in choclate claimed to boost cognitive ability, are also in red wine although the merits of this source are very limited. Classifed as a phytochemical, Flavonoids are highly effective in reversing age-related declines in neuro-cognitive performance through their ability to interact with the cellular and molecular architecture of those partsm of the brain responsible for memory and by reducing neuronal loss due to neurodegenerative processes. It is claimed that in particular, Flavonoids may increase the number of, and strength of, connections between neurons. Naturally correlation does not necessarily equal causation. What if the Nobel laureates were also coffee drinkers thus with another source of stimulation ?
Saturday, 27 July 2013
Weapons of fiction, now a reality
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| Active Denial mounted on its main heavy carrier |
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| Smaller mobile unit of Active Denial |
Tuesday, 23 July 2013
UNESCO's concern over the future of Australia's Great Barrier Reef
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| Bleached coral - Great Barrier Reef, Australia |
In relation to the Great Barrier Reef and Australia, the UN report specifically states:
The World Heritage Centre and IUCN recommend that the World Heritage Committee reiterate its request to the State Party (Australia) to undertake the following
actions:
a) make a clear
financial commitment to maintain the Reef Rescue programme and ensure water
quality continues to improve,b) halt the approval of coastal development projects that could individually or cumulatively impact on the property’s Oustanding Universal Value (OUV) and compromise the ongoing Strategic Assessment, and
c) ensure that the legislation protecting the property remains strong and adequate to maintain and enhance its OUV.
They further recommend that the Committee consider the Great Barrier Reef for inscription on the List of World Heritage in Danger at its 38th session in 2014 in the absence of a firm and demonstrable commitment on these priority issues by the State Party.
The Great Barrier Reef is one of the wonders of the world and the largest coral reef on the planet. The international recognition of serious threats to its' survival should galvanise further action domestically as warnings from local marine scientists appear to have been largely unsuccessful.
Monday, 22 July 2013
Theatre Review - Mrs Warren's Profession - Sydney Theatre Company 2013 Season
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| Helen Thomson as Mrs Warren |
The Sydney Theatre Company have returned with an additional series of performances of George Bernard Shaw's 'Mrs Warren's Profession' following the season sell-out earlier this year. The play received rapturous reviews and accolades but what was all the fuss about ?
Bernard Shaw's play is centred on the relationship between Vivie Warren (Lizzie Schebesta) a young, fiercely independent minded 19th Century bluestocking woman working her way to a successful career and her mother, Kitty Warren (Helen Thomson) who has bankrolled her daughter's expensive education via her unorthodox profession. Vivie's world and perceptions are turned upside down when she discovers her mother is a brothel owner and operator across Europe. Their relationship breaks down as the strong-minded daughter is quite unforgiving of her mother's commercial activities. Add to the mix a collection of various male bon vivants with class and privilege perspectives and the scene is set for the collapse of Vivie and Kitty's relationship. The play has an expert cast most notably with Lizze Schebesta and Helen Thomson however even with Bernard Shaw's sharp wit, the play has dated in its social observations (it was written in 1893), customs and practice. It could well be that a competently written play staged by STC has become such a novelty following flat seasons and financial loss-making years that its a stand-out.
Wednesday, 10 July 2013
Global corruption report - corruption remains a critical problem world-wide
The Report can be accessed at this link:
Global Corruption Index Report
The 2013 Global Corruption Barometer recently released by
Transparency International charts increasing public disquiet over the level of corruption in many segments and institutions of society. Over 114,000 people in 107 countries were surveyed for
their views on corruption and the results by country demonstrate a strong public perception that corruption has a strong influence.
Transparency International is an global Non-Government
Organisation with its Secretariat in Berlin, Germany and membership and
organisational chapters throughout the world. Transparency International has been
active in strengthening anti-corruption initiatives, such as the OECD
Anti-Bribery Convention, UN Convention against Corruption and UN Global Compact.
For Australia the results were generally positive with some obvious exceptions:
Percentage of respondents who felt these institutions
were affected by corruption in this country –
58 % political parties
58 % media
47 % business
44 % religious bodies
Question: How effective do you think your government's actions are
in the fight against corruption ?
16 % stated effective
32 % stated neither effective nor ineffective
36 % stated they were ineffective
16 % stated they were very ineffective
Global Corruption Index Report
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