Strategy & Operations
GLP-1 Drug Budget Pressures Highlighted, CFOs List Healthcare Costs as Key Operational Risk Focus
The latest Mercer survey reveals that the rapid adoption of GLP-1 weight-loss drugs, such as Wegovy and Ozempic, is intensifying volatility in employer healthcare costs. Nearly three-quarters of U.S. chief financial officers list healthcare as one of their top five operating expense pressures, with employer health insurance costs projected to increase by 6.7% in 2026, the largest rise in 15 years.
Salary opacity becomes a 'minefield' for job seekers: Monster report says 60% of candidates refuse to apply for positions without a salary range
Monster's Job Seeker Deal Breakers report, released this week, indicates that 60% of job seekers refuse to apply for positions without a salary range, and over half also avoid listings with unclear responsibilities, negative reviews, or requests for unpaid trial work. Based on a survey of 1,000 U.S. workers, the report highlights the decisive role of pay transparency in hiring.
Five Capital Allocation Questions the Board May Ask—and How to Ensure You Have Answers Ready
Capital allocation has shifted from static reporting of the annual budget to a management function where the board reviews performance and risk in real time. This article distills the five capital allocation questions the board is most likely to ask in 2026, covering project justification, prioritization criteria, AI investment returns, scenario response, and real-time FP&A involvement, along with a financial preparation checklist required for each question.
University of Michigan Survey: Consumer Confidence Rebounds, but Concerns over Jobs and Prices Persist
According to a survey released by the University of Michigan on Friday, consumer confidence improved this month, but worries about high prices and employment prospects remain. One-year inflation expectations declined but are still higher than in January 2025, and most consumers expect the unemployment rate to rise.
SEC Approves 9.4% Budget Cut for PCAOB FY2026, Sharply Reduces Compensation and Accounting Support Fees
The U.S. Securities and Exchange Commission (SEC) on Thursday approved the Public Company Accounting Oversight Board's (PCAOB) $362 million budget for fiscal year 2026, a 9.4% cut from the previous year; it also reduced the accounting support fee by 18.4% to $306 million and slashed the chair's and board members' compensation by 52% and 42%, respectively. SEC Chair Paul Atkins said the move aims to align compensation more closely with the spirit of public service, but observers expect enforcement activities to be squeezed.
Fed's preferred inflation gauge may fall below policymakers' forecasts
According to the latest data from the U.S. Bureau of Economic Analysis, the Fed's preferred inflation gauge—the personal consumption expenditures (PCE) price index excluding food and energy—rose 2.8% year over year in November, below Fed officials' earlier forecast of 3% for 2025. Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, expects inflation to continue running below the committee's expectations. The market widely anticipates that the Fed will hold interest rates steady after its meeting concluding on January 28, but may cut rates once or twice during the year.
M&A Growth: An Overrated Promise
Against a backdrop of high interest rates, M&A activity has picked up again, but data shows that 70% to 75% of deals fail to meet expectations. Executive compensation structures, shortened CEO tenures, and pressure from activist investors have jointly driven this trend. This article advises companies to focus on core businesses and long-term value creation rather than relying on M&A as a shortcut to growth.
Kiel Institute: US Bears 96% of Tariff Costs, Contrary to Trump's Claims
The latest research from the Kiel Institute indicates that US importers and consumers have borne 96% of the costs of tariffs imposed since April. Although the 2025 'Liberation Day' tariffs brought in about $200 billion in revenue, only 4% came from outside the US. This conclusion contradicts the Trump administration's claim that 'foreigners bear the tariffs.' Meanwhile, the Yale Budget Lab warns that if a 10% tariff is imposed on NATO members such as Denmark, the US consumer tariff rate would rise to 17.5%, the highest since 1932.
U.S. Accounting Program Enrollment Up 7.3% Year-Over-Year, Growth Rate Far Exceeds All-Field Average
Undergraduate enrollment in U.S. accounting programs grew by 7.3% year-over-year in fall 2025, marking the third consecutive year of growth, with a rate significantly higher than the 1.2% average across all majors. The American Institute of Certified Public Accountants (AICPA) stated that this trend is related to factors such as industry-driven licensure reforms and the impact of AI on employment prospects for computer-related majors. Despite the rebound in enrollment, the number of graduates continues to decline, with accounting degree graduates down 6.6% year-over-year in the 2023-2024 academic year.
Santander US Prosperity Exchange Podcast: Seizing Opportunity Amid Uncertainty
In the first episode of the Santander US Prosperity Exchange Podcast, Mike Lee, Head of Santander Commercial Banking, speaks with John Howley, Vice Chairman of Newmark, revealing how Santander won the role of servicer for a $9 billion real estate portfolio.