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A group project working to implemented programs in the Town of Gilbert that build an entrepreneurial ecosystem within the town.
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
With the rising growth of makerspaces in the United States, many are at the leading edge of innovation but are struggling to adequately keep track of and maintain the supplies required to make those innovations come to fruition. Due to most makerspaces being publically funded by local governments, universities, or designated grant money, approval for purchase and implementation of a proper inventory management system takes time. We have created an application called Introventoria that assists these businesses to manage their materials, tools, customers, etc.
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
When examining the average college campus, it becomes obvious that students feel rushed from one place to another as they try to participate in class, clubs, and extracurricular activities. One way that students can feel more comfortable and relaxed around campus is to introduce the aspect of gaming. Studies show that “Moderate videogame play has been found to contribute to emotional stability” (Jones, 2014). This demonstrates that the stress of college can be mitigated by introducing the ability to interact with video games. This same concept has been applied in the workplace, where studies have shown that “Gaming principles such as challenges, competition, rewards and personalization keep employees engaged and learning” (Clark, 2020). This means that if we manage to gamify the college experience, students will be more engaged which will increase and stabilize the retention rate of colleges which utilize this type of experience. Gaming allows students to connect with their peers in a casual environment while also allowing them to find resources around campus and find new places to eat and relax. We plan to gamify the college experience by introducing augmented reality in the form of an app. Augmented reality is “. . . a technology that combines virtual information with the real world” (Chen, 2019). College students will be able to utilize the resources and amenities available to them on campus while completing quests that help them within the application. This demonstrates the ability for video games to engage students using artificial tasks but real actions and experiences which help them feel more connected to campus. Our Founders Lab team has developed and tested an AR application that can be used to connect students with their campus and the resources available to them.