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In mid-April I participated in a volunteer summit at the college where I earned my undergraduate degree. One of the first events was a conversation between the college president and Rob Karofsky, president of UBS Investment Bank, himself an alumnus of the college.
The discussion covered a variety of topics including Karofsky’s part in UBS’ rapid acquisition of Credit Suisse in March 2023. What stuck out for me though, was Karofsky’s remarks about how the bank treats its employees. He talked about the importance of investing in the team saying, “our talent is our business.” It reminded me of that old saying about media: our greatest assets walk out the door each night.
I thought about that conversation when I read the recent pieces warning that the FTC’s noncompete ban will hurt media businesses. Hank Price said Killing Noncompetes Could Deliver A Body Blow To Broadcasters. Pillsbury attorney Scott R. Flick warned Heard About the FTC’s Ban on Non-Competes? The Truth Is Worse. Both argued that such agreements are essential to protecting stations’ investment in talent.
I disagree. Noncompete agreements are, at best, a blunt weapon. They are a cheap and sloppy way to compensate for bad management. They are also a distraction. Yes, there is a need to protect a company’s investment in training and in senior leadership and high-profile talent; there are other ways to do that.
The FTC estimates that as much as 20% of the U.S.