DealBook: Former Goldman Director Gupta to Stay Free Pending His Appeal

A former Goldman Sachs director Rajat K. Gupta can remain free on bail while he challenges his insider-trading conviction, a federal appeals court ruled on Tuesday.

In a surprise decision, the United States Court of Appeals for the Second Circuit in Manhattan ruled that Mr. Gupta will not have to report to prison until his appeal his heard, a process that can take as long as a year. He was set to start serving his two-year sentence on Jan. 8.

Mr. Gupta, 64, was found guilty in June of leaking Goldman’s boardroom secrets to his friend, the hedge fund manager Raj Rajaratnam.

Tuesday’s ruling suggests that Mr. Gupta persuaded the judges that he has legitimate issues to argue on appeal. The same federal appeals court had denied a request by Mr. Rajaratnam to remain free on bail pending his appeal. Mr. Rajaratnam is serving an 11-year prison term.

Mr. Gupta’s lawyers are expected to make several arguments in pushing for his conviction to be overturned. The most significant issue on appeal is expected to be the government’s use of the wiretaps during the trial. Judge Jed S. Rakoff, the trial-court judge, allowed the jury to hear incriminating wiretapped conversations involving Mr. Rajaratnam and his traders that suggested he had a source inside of Goldman.

”I heard yesterday from somebody who’s on the board of Goldman Sachs that they are going to lose $2 per share,” said Mr. Rajaratnam to one of his colleagues, on a wiretapped call, in October 2008.

Multimedia: Insider Trading

Without the wiretaps, prosecutors would have had to rely on circumstantial evidence — telephone bills and trading records — to prove their case.

Mr. Gupta’s lawyers had argued that because the conversations were between Mr. Rajaratnam and his employees, the judge should declare them inadmissible hearsay evidence, meaning that they were too unreliable to be used against Mr. Gupta.

Another issue that Mr. Gupta’s lawyers are expected to raise is that Judge Rakoff erred in curbing testimony by Mr. Gupta’s daughter about her father’s deteriorating relationship with Mr. Rajaratnam.

Mr. Gupta, who lives in Westport, Conn., has been free on $10 million bail since his arrest in October 2011. In addition to a team of lawyers from Kramer Levin Naftalis & Frankel that have been representing him, Mr. Gupta hired Seth P. Waxman, a noted appellate lawyer, to help handle his appeal. Mr. Waxman, a partner at WilmerHale, is a former United States solicitor general who has argued more than 50 cases before the United States Supreme Court.

The court is expected to hear Mr. Gupta’s appeal this spring.

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Boehner makes counteroffer on 'fiscal cliff'









WASHINGTON — Rejecting President Obama’s call to raise tax rates for the wealthy, House Republicans unveiled a counteroffer that would cut Medicare, Medicaid, Social Security and other federal programs while raising new revenue by overhauling the tax code.


House Speaker John A. Boehner (R-Ohio) and his GOP leadership team sent the White House the three-page offer Monday afternoon as the administration turned up the volume on their complaints that Republicans have been unwilling to put a serious proposal on the table.


“With the fiscal cliff nearing, our priority remains finding a reasonable solution that can pass both the House and Senate, and be signed into law in the next couple of weeks,” Boehner and the other leaders wrote in the letter to the president, describing a plan that draws from an earlier deficit-reduction proposal from Erskine Bowles, the Democratic former co-chairman of the president’s fiscal commission.





Noticeably missing from the counteroffer, which was also signed by Rep. Paul D. Ryan (R-Wis.) who had been Republican Mitt Romney’s vice-presidential running mate, was Ryan’s House-passed budget proposals for turning Medicare into a voucher-like program for the next generation of seniors.


QUIZ: How much do you know about the fiscal cliff?


“We recognize it would be counterproductive to publicly or privately propose entitlement reforms that you and the leaders of your party appear unwilling to support inn the near-term,” the letter said.


The Republican offer comes as talks to avert the year-end budget crisis that economists warn could derail the economy had hit a stalemate. Existing tax rates will increase Jan. 1, rising about $2,200 on average Americans in the new year, if nothing is done. Enormous budget cuts are scheduled days later, a one-two punch of economic contraction.


Obama has been fighting to preserve the lower tax rates for all but the wealthiest households, those earning more than $250,000 for couples and $200,000 for singles. The president has said the nation can no longer afford tax breaks for the wealthy that would cost about $900 billion over the decade. But Republicans are fighting to keep the tax breaks for all.


Monday, Republicans proposed capturing nearly the same amount of revenue by closing loopholes and limiting itemized deductions on the wealthiest households, while also launching a broader tax-reform process that would lower all tax rates.


Boehner and his team also proposed $1.4 trillion in savings from spending cuts — including healthcare reforms that could include raising the Medicare retirement age and asking wealthier seniors to pay higher Medicare premiums. They also proposed limiting the cost-of-living adjustments for Social Security recipients and others.


Cuts to the entitlement programs have long been discussed as part of a broad deficit-reduction deal, but they are politically unpleasant. By refusing to consider such changes, Democrats forced Republicans to put them on the table.


The Republican proposal is silent on issues Obama had proposed in his offer last week, including a continuation of the payroll tax break and long-term unemployment benefits.


Details of the proposal remain to be worked out, but Republicans suggested a two-part framework, with some of the tax-and-spending changes happening this year and the rest being made in 2013.


Follow Politics Now on Twitter and Facebook


lisa.mascaro@latimes.com


Twitter: @LisaMascaroinDC





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Social Media Is Eating Our Lives (And Pinterest Is Chewing Fastest)











If you find yourself spending an inordinate amount of time on Facebook, Twitter, or Pinterest, thank your smartphone and tablet: Americans’ social media use is on track to spike 37 percent this year, driven by a near doubling of consumption on mobile apps, according to a new Nielsen study.


The biggest social networks are seeing mobile use explode while desktop computer use remains relatively flat, according to a year-end Nielsen survey of social media consumption. Mobile app usage spiked 88 percent on Facebook this year and 134 percent on Twitter. In contrast, desktop use shrank 4 percent on Facebook and grew just 13 percent on Twitter.


The bottom line: Americans spent 121.1 billion minutes on social media during one month this summer versus 88 billion the year prior. You can see how mobile apps drove growth in this graphic:



Pinterest, meanwhile, emerged in 2012 as a growth sensation on all platforms, increasing unique visitors 1,047 percent on the desktop and 4,225 percent on mobile. (It probably helps that Pinterest came out of invitation-only beta only this past August.)


So if you’re thinking about buying a loved one an iPad Mini or a Nexus 4 this holiday season, just remember the little device could prove a big distraction. Whether that’s a good thing or a bad thing has more to do with your family than with your seductive gizmos.







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Turkey fines TV channel for “The Simpsons” blasphemy












ISTANBUL (Reuters) – Turkey‘s broadcasting regulator is fining a television channel for insulting religious values after it aired an episode of “The Simpsons” which shows God taking orders from the devil.


Radio and television watchdog RTUK said it was fining private broadcaster CNBC-e 52,951 lira ($ 30,000) over the episode of the hit U.S. animated TV series, whose scenes include the devil asking God to make him a coffee.












“The board has decided to fine the channel over these matters,” an RTUK spokeswoman said but declined further comment, saying full details would probably be announced next week.


CNBC-e said it would comment once the fine was officially announced.


Turkey is a secular republic but most of its 75 million people are Muslim. Religious conservatives and secular opponents vie for public influence and critics of the government say it is trying to impose Islamic values by stealth.


Elected a decade ago with the strongest majority seen in years, Prime Minister Tayyip Erdogan and his Islamist-rooted AK Party have overseen a period of unprecedented prosperity in Turkey. But concerns are growing about authoritarianism.


Erdogan last week tore into a chart-topping soap opera about the Ottoman Empire’s longest-reigning Sultan and the broadcasting regulator has warned the show’s makers about insulting a historical figure.


“The Simpsons” first aired in 1989 and is the longest-running U.S. sitcom. It is broadcast in more than 100 countries and CNBC-e has been airing it in Turkey for almost a decade.


“I wonder what the script writers will do when they hear that the jokes on their show are taken seriously and trigger fines in a country called Turkey,” wrote Mehmet Yilmaz, a columnist for the Hurriyet newspaper.


“Maybe they will add an almond-moustached RTUK expert to the series,” he said, evoking a popular Turkish stereotype of a pious government supporter.


($ 1 = 1.7873 Turkish liras)


(Reporting by Ece Toksabay; Editing by Nick Tattersall and Paul Casciato)


TV News Headlines – Yahoo! News


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Small Employers Weigh Impact of Providing Health Insurance


Erich Schlegel for The New York Times


Robert Mayfield, who owns Dairy Queen franchises in Texas, says he is “scared to death” of the new health care law.







Like many franchisees, Robert U. Mayfield, who owns five Dairy Queens in and around Austin, Tex., is always eager to expand and — no surprise — has had his eyes on opening a sixth DQ. But he said concerns about the new federal health care law had persuaded him to hold off.




“I’m scared to death of it,” he said. “I’m one of the ones sitting on the sidelines to see what’s really going to happen.”


Mr. Mayfield, who has 99 employees, said he was worried he would face penalties of $40,000 or more because he did not offer health insurance to many of his full-time workers — generally defined as those working an average of 30 hours a week or more. Ever since the law was enacted in 2010, opponents have argued that employers who were forced to offer health insurance would lay off workers or shift more people to part-time status to compensate for the additional cost. Those claims have drawn considerable attention — and considerable anger in response — in recent weeks.


John H. Schnatter, the chief executive of Papa John’s, the pizza chain, said some franchisees were likely to reduce their employees’ hours to avoid having to provide coverage. And an unhappy Denny’s franchise owner in Florida warned that he would raise prices 5 percent as a “surcharge,” adding that disgruntled customers could offset that by reducing their tips.


Some health care experts said comments like those came from outliers and sometimes resulted from confusion about a highly complicated new law, the Patient Protection and Affordable Care Act. Many of the provisions do not go into effect until 2014. Federal officials are still tweaking the fine print, like defining exactly what constitutes a 30-hour workweek. Even so, restaurants and hotels are among the industries likely to be squeezed the hardest by the law because they are low-wage industries that do not offer coverage to most of their workers.


Most employers, even small businesses, already offer health insurance, and the federal law is not expected to have a significant impact on what they do over the next year or so. But businesses that rely heavily on low-income workers, many of whom do not make enough to afford their share of the cost of the insurance premiums, are being forced to rethink their business models.


Almost half of retail and hospitality employers do not offer coverage to all their full-time employees, according to a recent survey by Mercer, a benefits consultant.


“They’re all developing their strategies,” said Debra Gold, a senior partner with Mercer who advises several major retailers.


Many who oppose the requirement say the cost of providing health insurance could mean hiring fewer workers. “Any dollar that gets diverted, whether it’s through Obamacare or increased tax rates, puts franchisees one dollar further away from being able to expand their businesses,” said Don Fox, chief executive of Firehouse Subs, a fast-growing chain of 559 restaurants based in Jacksonville, Fla. At the 30 stores the corporation owns, only full-time managers are offered coverage. Mr. Fox is wrestling with whether to absorb the considerable cost of covering 100 more employees or pay the penalties — which would probably cost him less — but risk losing valued employees to competitors who choose to offer coverage.


Employee health coverage now averages nearly $6,000 for an individual plan. That is considerable for businesses like restaurants in which the majority of workers make $24,000 a year or less, according to research by the Kaiser Family Foundation. The foundation found that only 28 percent of companies that employ large numbers of low-income workers offer health benefits. “This is where the biggest set of hurdles is,” said Gary Claxton, an executive with Kaiser.


By 2014, businesses with 50 or more full-time employees will be expected to offer as yet undefined affordable coverage, based on an employee’s income. For employers that fail to offer such coverage, the law typically calls for a penalty of $2,000 a worker, excluding the first 30 employees. As evidence of how sensitive the issue is, Mr. Schnatter of Papa John’s took some heat for his initial statements about the possibility that franchisees would cut employees’ hours to avoid penalties or having to provide coverage. His comments, made during a public appearance, were reported by a local newspaper in Florida, The Naples News. After facing a storm of criticism, he wrote an opinion piece for The Huffington Post, in which he said he had only been speculating about the law’s potential impact on franchisees.


“Papa John’s, like most businesses, is still researching what the Affordable Care Act means to our operations,” he wrote. “Regardless of the conclusion of our analysis, we will honor this law, as we do all laws, and continue to offer 100 percent of Papa John’s corporate employees and workers in company-owned stores health insurance as we have since the company was founded in 1984.” Through a spokesman, Mr. Schnatter declined to comment further.


This article has been revised to reflect the following correction:

Correction: November 30, 2012

An earlier version of this article misspelled the first name of an executive with the Kaiser Family Foundation. He is Gary Claxton, not Glary.



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Pullback in Manufacturing





WASHINGTON — Manufacturing in the United States shrank in November to its weakest level since July 2009, one month after the recession ended, the Institute for Supply Management said Monday.




The institute’s index of manufacturing conditions fell to a reading of 49.5 points last month, down from 51.7 in October.


Readings above 50 signal growth, while readings below indicate contraction. Manufacturing grew in October for only the second time since May. The institute is a trade group of purchasing managers.


A gauge of new orders dropped to its lowest level since August, a sign that production could slow in the coming months. Manufacturers also sharply reduced their stockpiles, indicating companies expected weaker demand.


“Today’s report suggests that the manufacturing sector is likely to remain a weak point in the recovery for a few months yet,” Jeremy Lawson, an economist at BNP Paribas, said in a note to clients.


The weak manufacturing survey overshadowed other positive economic reports. Greater home building in the United States bolstered construction spending in October by the most in five months. Manufacturing activity in China grew in November for the second straight month. And auto sales in the United States rebounded last month after Hurricane Sandy held sales back in October.


The institute said manufacturers are concerned about the sharp tax increases and government spending cuts that will take effect in January if Congress and the Obama administration fail to strike a budget deal before then.


These worries have led many companies to pull back this year on purchases of machinery and equipment, which signal investment plans. The decline could slow economic growth and hold back hiring in the October-December quarter.


A measure of hiring in the institute’s survey fell to 48.4 points, the lowest reading since September 2009.


Companies “are just backing off and not making any moves until things clear up a bit,” Bradley Holcomb, chairman of the Institute for Supply Management’s survey committee, said.


Consumers also appear nervous about higher taxes. Economists cited the prospect of higher tax rates in 2013 as a main reason consumer spending fell in October by the most since May.


When consumers cut back on spending, businesses typically reduce their pace of restocking. Both trends are expected to slow economic growth at the end of the year.


The economy grew from July through September at an annual rate of 2.7 percent, largely because of strong growth in inventories. Most economists predict growth is slowing in the current October-December quarter to a rate below 2 percent.


Hurricane Sandy had little impact on factory activity last month, according to the institute’s survey. The storm hit the East Coast on Oct. 29 and affected businesses in 24 states.


A gauge of production in the survey rose in November for the third straight month. That’s a sign that the hurricane didn’t force many factory shutdowns.


A slowdown in global growth has weighed on American manufacturers. New export orders slipped in November for the second straight month.


Surveys show consumers remain upbeat about the economy, despite the looming taxes and spending cuts. A measure of consumer confidence reached a five-year high in November.


If lawmakers and President Obama can work out a budget deal that averts the tax increases, most economists predict a good year for the economy.


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Northridge residents stunned by multiple slayings









Shane Grady woke up "from a dead sleep" early Sunday when he heard gunshots.

He dropped to the floor and looked out his window, but the traffic on Devonshire Street blocked his view.

"If there was yelling or screaming, I couldn't hear it," he said.

Police arrived minutes later and began canvassing the neighborhood, a helicopter flying low overhead. By mid-morning, detectives were still at the house across from Grady's, where four people were found shot dead.

Investigators are still working to determine a motive and found no weapon at the scene, LAPD Cmdr. Andrew Smith said. No suspects are in custody.

L.A. Councilman Mitchell Englander, whose district includes parts of the San Fernando Valley, said the incident appeared to be isolated. He said the home was believed to be an unlicensed boarding home with multiple tenants.

Neighbors said rooms at the home were rented out and the residents appeared to be single men who primarily kept to themselves. At least four people live in an upstairs area, they said, but they did not know how many boarders in all reside there.

The neighbors also said there was nothing unusual about the home, except for some occasional loud music.

One woman who lives around the block from the residence said she heard loud music and yelling from the house about 1:30 a.m. She fell asleep about an hour later but said the music was still playing.

"I just figured it was a party that was out of control," she said.

Others described the street as quiet, the kind where neighbors know one another and people walk to the Jewish temple just houses away from where the shooting occurred. There have been a few incidents — a car chase last summer, a murder 10 years back — they said, but nothing like this.

"It's usually sleepy-time America," said Richard Rutherford, 58.

Rutherford heard the shots as well. The helicopter that came next, he said, was so low it "was shaking the rooftop."

Jeff Kaye, 62, said the helicopters weren't unusual — the Devonshire police station is just a few blocks away. But the shootings were unusual, he said.

"It concerns you," he said. "You want to know what's going on."

Englander said he was "shocked" by the shootings.

"Typically, you don't have these kinds of incidents in this type of community," he said.

Grady said the same thing.

"How often in this neighborhood do you hear about four dead bodies?" Grady said.

Crime for last six months in Northridge:
Violent crimes (89)
   
Property crimes (895)
   
The violent crime rate for Northridge falls in the middle of all Los Angeles city neighborhoods, but homicide is rare in the community, according to LAPD data analyzed in The Times Crime L.A. database. In the previous six months, Northridge had one homicide among the 89 violent crimes reported. The location of the homicides discovered Sunday is on the border with Granada Hills, which typically has a much lower violent-crime rate than Northridge.

Since 2007 -- prior to Sunday's quadruple homicide -- Northridge had 11 homicides, all but one south of Nordhoff Street, according to L.A. County coroner's data compiled in The Times Homicide Report. The most recent took place Sept. 25, when Louis Villegas, 25, was fatally shot near Balboa Boulevard and Parthenia Street. Villegas was riding in a Lexus that had pulled over to the side of the road when a man approached and began shooting.

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Clint Eastwood’s daughter named Miss Golden Globe












LOS ANGELES (TheWrap.com) – Hooray for nepotism.


One of Clint Eastwood‘s daughters, Francesca Eastwood, has been named Miss Golden Globe for this January’s awards show. She joins a long list of celebrity offspring including Rumer Willis (Demi Moore and Bruce’s little girl) and Lorraine Nicholson (the apple of Jack’s eye) in receiving the honor. Other past Miss Gold Globes include Melanie Griffith (daughter of Peter Griffith and Tippi Hedren) and Laura Dern (daughter of Bruce Dern and Diane Ladd).












Francesca Eastwood is the daughter of Eastwood and actress Frances Fisher. She is the second Eastwood to become a Miss Golden Globe – her half sister Kathryn Eastwood, daughter of Clint Eastwood and Jacelyn Reeves, received the title in 2005.


“I have watched the Golden Globes ceremonies since I was a little girl, and it means so much to me to be a part of one of Hollywood’s most illustrious events,” Francesca Eastwood said in a statement.


The 19-year-old actress has appeared in her father’s movies, including “True Crime,” and can currently be seen on the E! reality show “Mrs. Eastwood and Company,” which shows her living a life of Carmel-by-the-Sea opulence along with her famous family and the South African band Overtone.


The duties of a Miss Golden Globe are somewhat nebulous, but they involve assisting with the highly rated awards show, cooking up a cure for world hunger and working on a vaccine for avian flu (OK, some of that may not be true).


Movies News Headlines – Yahoo! News


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Unboxed: Stand-Up Desks Gaining Favor in the Workplace





THE health studies that conclude that people should sit less, and get up and move around more, have always struck me as fitting into the “well, duh” category.




But a closer look at the accumulating research on sitting reveals something more intriguing, and disturbing: the health hazards of sitting for long stretches are significant even for people who are quite active when they’re not sitting down. That point was reiterated recently in two studies, published in The British Journal of Sports Medicine and in Diabetologia, a journal of the European Association for the Study of Diabetes.


Suppose you stick to a five-times-a-week gym regimen, as I do, and have put in a lifetime of hard cardio exercise, and have a resting heart rate that’s a significant fraction below the norm. That doesn’t inoculate you, apparently, from the perils of sitting.


The research comes more from observing the health results of people’s behavior than from discovering the biological and genetic triggers that may be associated with extended sitting. Still, scientists have determined that after an hour or more of sitting, the production of enzymes that burn fat in the body declines by as much as 90 percent. Extended sitting, they add, slows the body’s metabolism of glucose and lowers the levels of good (HDL) cholesterol in the blood. Those are risk factors toward developing heart disease and Type 2 diabetes.


“The science is still evolving, but we believe that sitting is harmful in itself,” says Dr. Toni Yancey, a professor of health services at the University of California, Los Angeles.


Yet many of us still spend long hours each day sitting in front of a computer.


The good news is that when creative capitalism is working as it should, problems open the door to opportunity. New knowledge spreads, attitudes shift, consumer demand emerges and companies and entrepreneurs develop new products. That process is under way, addressing what might be called the sitting crisis. The results have been workstations that allow modern information workers to stand, even walk, while toiling at a keyboard.


Dr. Yancey goes further. She has a treadmill desk in the office and works on her recumbent bike at home.


If there is a movement toward ergonomic diversity and upright work in the information age, it will also be a return to the past. Today, the diligent worker tends to be defined as a person who puts in long hours crouched in front of a screen. But in the 19th and early 20th centuries, office workers, like clerks, accountants and managers, mostly stood. Sitting was slacking. And if you stand at work today, you join a distinguished lineage — Leonardo da Vinci, Ben Franklin, Winston Churchill, Vladimir Nabokov and, according to a recent profile in The New York Times, Philip Roth.


DR. JAMES A. LEVINE of the Mayo Clinic is a leading researcher in the field of inactivity studies. When he began his research 15 years ago, he says, it was seen as a novelty.


“But it’s totally mainstream now,” he says. “There’s been an explosion of research in this area, because the health care cost implications are so enormous.”


Steelcase, the big maker of office furniture, has seen a similar trend in the emerging marketplace for adjustable workstations, which allow workers to sit or stand during the day, and for workstations with a treadmill underneath for walking. (Its treadmill model was inspired by Dr. Levine, who built his own and shared his research with Steelcase.)


The company offered its first models of height-adjustable desks in 2004. In the last five years, sales of its lines of adjustable desks and the treadmill desk have surged fivefold, to more than $40 million. Its models for stand-up work range from about $1,600 to more than $4,000 for a desk that includes an actual treadmill. Corporate customers include Chevron, Intel, Allstate, Boeing, Apple and Google.


“It started out very small, but it’s not a niche market anymore,” says Allan Smith, vice president for product marketing at Steelcase.


The Steelcase offerings are the Mercedes-Benzes and Cadillacs of upright workstations, but there are plenty of Chevys as well, especially from small, entrepreneurial companies.


In 2009, Daniel Sharkey was laid off as a plant manager of a tool-and-die factory, after nearly 30 years with the company. A garage tinkerer, Mr. Sharkey had designed his own adjustable desk for standing. On a whim, he called it the kangaroo desk, because “it holds things, and goes up and down.” He says that when he lost his job, his wife, Kathy, told him, “People think that kangaroo thing is pretty neat.”


Today, Mr. Sharkey’s company, Ergo Desktop, employs 16 people at its 8,000-square-foot assembly factory in Celina, Ohio. Sales of its several models, priced from $260 to $600, have quadrupled in the last year, and it now ships tens of thousands of workstations a year.


Steve Bordley of Scottsdale, Ariz., also designed a solution for himself that became a full-time business. After a leg injury left him unable to run, he gained weight. So he fixed up a desktop that could be mounted on a treadmill he already owned. He walked slowly on the treadmill while making phone calls and working on a computer. In six weeks, Mr. Bordley says, he lost 25 pounds and his nagging back pain vanished.


He quit the commercial real estate business and founded TrekDesk in 2007. He began shipping his desk the next year. (The treadmill must be supplied by the user.) Sales have grown tenfold from 2008, with several thousand of the desks, priced at $479, now sold annually.


“It’s gone from being treated as a laughingstock to a product that many people find genuinely interesting,” Mr. Bordley says.


There is also a growing collection of do-it-yourself solutions for stand-up work. Many are posted on Web sites like howtogeek.com, and freely shared like recipes. For example, Colin Nederkoorn, chief executive of an e-mail marketing start-up, Customer.io, has posted one such design on his blog. Such setups can cost as little as $30 or even less, if cobbled together with available materials.


UPRIGHT workstations were hailed recently by no less a trend spotter of modern work habits and gadgetry than Wired magazine. In its October issue, it chose “Get a Standing Desk” as one of its “18 Data-Driven Ways to Be Happier, Healthier and Even a Little Smarter.”


The magazine has kept tabs on the evolving standing-desk research and marketplace, and several staff members have become converts themselves in the last few months.


“And we’re all universally happy about it,” Thomas Goetz, Wired’s executive editor, wrote in an e-mail — sent from his new standing desk.


Read More..

Unboxed: Stand-Up Desks Gaining Favor in the Workplace





THE health studies that conclude that people should sit less, and get up and move around more, have always struck me as fitting into the “well, duh” category.




But a closer look at the accumulating research on sitting reveals something more intriguing, and disturbing: the health hazards of sitting for long stretches are significant even for people who are quite active when they’re not sitting down. That point was reiterated recently in two studies, published in The British Journal of Sports Medicine and in Diabetologia, a journal of the European Association for the Study of Diabetes.


Suppose you stick to a five-times-a-week gym regimen, as I do, and have put in a lifetime of hard cardio exercise, and have a resting heart rate that’s a significant fraction below the norm. That doesn’t inoculate you, apparently, from the perils of sitting.


The research comes more from observing the health results of people’s behavior than from discovering the biological and genetic triggers that may be associated with extended sitting. Still, scientists have determined that after an hour or more of sitting, the production of enzymes that burn fat in the body declines by as much as 90 percent. Extended sitting, they add, slows the body’s metabolism of glucose and lowers the levels of good (HDL) cholesterol in the blood. Those are risk factors toward developing heart disease and Type 2 diabetes.


“The science is still evolving, but we believe that sitting is harmful in itself,” says Dr. Toni Yancey, a professor of health services at the University of California, Los Angeles.


Yet many of us still spend long hours each day sitting in front of a computer.


The good news is that when creative capitalism is working as it should, problems open the door to opportunity. New knowledge spreads, attitudes shift, consumer demand emerges and companies and entrepreneurs develop new products. That process is under way, addressing what might be called the sitting crisis. The results have been workstations that allow modern information workers to stand, even walk, while toiling at a keyboard.


Dr. Yancey goes further. She has a treadmill desk in the office and works on her recumbent bike at home.


If there is a movement toward ergonomic diversity and upright work in the information age, it will also be a return to the past. Today, the diligent worker tends to be defined as a person who puts in long hours crouched in front of a screen. But in the 19th and early 20th centuries, office workers, like clerks, accountants and managers, mostly stood. Sitting was slacking. And if you stand at work today, you join a distinguished lineage — Leonardo da Vinci, Ben Franklin, Winston Churchill, Vladimir Nabokov and, according to a recent profile in The New York Times, Philip Roth.


DR. JAMES A. LEVINE of the Mayo Clinic is a leading researcher in the field of inactivity studies. When he began his research 15 years ago, he says, it was seen as a novelty.


“But it’s totally mainstream now,” he says. “There’s been an explosion of research in this area, because the health care cost implications are so enormous.”


Steelcase, the big maker of office furniture, has seen a similar trend in the emerging marketplace for adjustable workstations, which allow workers to sit or stand during the day, and for workstations with a treadmill underneath for walking. (Its treadmill model was inspired by Dr. Levine, who built his own and shared his research with Steelcase.)


The company offered its first models of height-adjustable desks in 2004. In the last five years, sales of its lines of adjustable desks and the treadmill desk have surged fivefold, to more than $40 million. Its models for stand-up work range from about $1,600 to more than $4,000 for a desk that includes an actual treadmill. Corporate customers include Chevron, Intel, Allstate, Boeing, Apple and Google.


“It started out very small, but it’s not a niche market anymore,” says Allan Smith, vice president for product marketing at Steelcase.


The Steelcase offerings are the Mercedes-Benzes and Cadillacs of upright workstations, but there are plenty of Chevys as well, especially from small, entrepreneurial companies.


In 2009, Daniel Sharkey was laid off as a plant manager of a tool-and-die factory, after nearly 30 years with the company. A garage tinkerer, Mr. Sharkey had designed his own adjustable desk for standing. On a whim, he called it the kangaroo desk, because “it holds things, and goes up and down.” He says that when he lost his job, his wife, Kathy, told him, “People think that kangaroo thing is pretty neat.”


Today, Mr. Sharkey’s company, Ergo Desktop, employs 16 people at its 8,000-square-foot assembly factory in Celina, Ohio. Sales of its several models, priced from $260 to $600, have quadrupled in the last year, and it now ships tens of thousands of workstations a year.


Steve Bordley of Scottsdale, Ariz., also designed a solution for himself that became a full-time business. After a leg injury left him unable to run, he gained weight. So he fixed up a desktop that could be mounted on a treadmill he already owned. He walked slowly on the treadmill while making phone calls and working on a computer. In six weeks, Mr. Bordley says, he lost 25 pounds and his nagging back pain vanished.


He quit the commercial real estate business and founded TrekDesk in 2007. He began shipping his desk the next year. (The treadmill must be supplied by the user.) Sales have grown tenfold from 2008, with several thousand of the desks, priced at $479, now sold annually.


“It’s gone from being treated as a laughingstock to a product that many people find genuinely interesting,” Mr. Bordley says.


There is also a growing collection of do-it-yourself solutions for stand-up work. Many are posted on Web sites like howtogeek.com, and freely shared like recipes. For example, Colin Nederkoorn, chief executive of an e-mail marketing start-up, Customer.io, has posted one such design on his blog. Such setups can cost as little as $30 or even less, if cobbled together with available materials.


UPRIGHT workstations were hailed recently by no less a trend spotter of modern work habits and gadgetry than Wired magazine. In its October issue, it chose “Get a Standing Desk” as one of its “18 Data-Driven Ways to Be Happier, Healthier and Even a Little Smarter.”


The magazine has kept tabs on the evolving standing-desk research and marketplace, and several staff members have become converts themselves in the last few months.


“And we’re all universally happy about it,” Thomas Goetz, Wired’s executive editor, wrote in an e-mail — sent from his new standing desk.


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