Corporate Governance

Pete Stavros and his equity-for-all quest

31 May 2022

The KKR partner started the non-profit Ownership Works to help companies grant stock to entire workforces. He discusses the resistance, the success stories, and an ambitious plan to create $100 bln of wealth for employees on this episode of The Exchange podcast.

Capital Calls: Twitter snubs investors

27 May 2022

Concise views on global finance: The social media platform refused to accept the resignation of director Egon Durban, one more check for bad corporate governance. But it’s not like investors have held the company to a high standard.

Oil’s discards show the thrill of boring spinoffs

27 May 2022

A decade ago, oil firms jettisoned slow-growing refineries like Marathon Petroleum to focus on high-margin exploration. These businesses have returned far more than the exciting drilling business. The gap could widen, encouraging Big Oil to consider something similar.

Shopify’s governance revamp is so 2021

26 May 2022

Shareholders are being asked to give Tobi Lütke the ability to keep his voting power even if his ownership stake falls. That might have been palatable at the end of last year, when Shopify’s shares were worth five times as much as they are now. Now it just adds insult to injury.

Adler gifts German watchdog a shot at redemption

4 May 2022

BaFin’s probe into the property group has gained added weight after KPMG’s refusal to approve its 2021 accounts. The mess is an important test for new boss Mark Branson after the regulator’s Wirecard failings. Adler’s patchy disclosure and shaky governance make it an easy target.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

How to return control of companies to their owners

28 Apr 2022

Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.

UK fund manager picks canny time to do right thing

26 Apr 2022

The $10 bln Schroders is ditching its non-voting shares. A 37% discount to the voting stock helps smooth a deal without its dominant family losing out too much either. It’s a timely corrective to UK Chancellor Rishi Sunak’s efforts to lure more dual-share structures to London.

Porsche IPO is slow road to a higher VW valuation

20 Apr 2022

The German carmaker’s luxury brand could easily be worth 90 bln euros. Yet a plan to only sell 25% may limit the benefit for shareholders by leaving the company with a small free float and complex governance. Their consolation is that this listing may not be the final model.

Flighty Musk exposes Twitter’s flaky governance

11 Apr 2022

The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run.

Capital Calls: Credit Agricole’s Italian job

8 Apr 2022

Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.

Culture wars: Musk’s Twitter punt, French election

7 Apr 2022

Outspoken political and business leaders are making big moves. In this Viewsroom podcast, Breakingviews columnists discuss why Twitter may have reaped the benefits from Elon Musk’s investment and how French President Emmanuel Macron needs to work hard to win over voters.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Capital Calls: Gas stimulus

25 Mar 2022

Concise views on global finance: Direct payments to drivers are better than fuel tax cuts, but neither is ideal.

Toshiba board rebel mainly helps governance cause

17 Mar 2022

Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.

Goldman reminds top dogs it can do what it wants

23 Feb 2022

The Wall Street firm may confiscate stock issued to a banker who left to start a business for Walmart. Goldman has historically gone easy on employees who join big clients. But competitors are proliferating, and boss David Solomon needs a firm hand to deal with new rivals.

Citi’s Jane Fraser embodies Wall Street’s pay gap

15 Feb 2022

The new CEO’s $22.5 mln package lags jumbo sums awarded to JPMorgan’s Jamie Dimon and Goldman Sachs’ David Solomon. Citi hasn’t been a great investment. But overemphasizing past returns could leave Citi the worst of both worlds: A troubled bank with a boss in need of motivation.

Toshiba rejig goes long pragmatism, short vision

7 Feb 2022

The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.

Capital Calls: U.S. jobs growth gives Fed cover

4 Feb 2022

Concise views on global finance: Employers added a solid 467,000 positions, reflecting economic resiliency despite a new wave of Covid-19 infections.

Nelson Peltz board swap leaves unresolved conflict

2 Feb 2022

The activist gave up a board seat at Invesco to take one at rival Janus Henderson, while holding stock in both fund managers. If the companies decide to merge, Peltz is a conflicted broker with inside knowledge. Even a good suggestion becomes unnecessarily controversial.