Citi’s latest management reshuffle insufficient 22 Jan 2007 Sallie Krawcheck is stepping aside as CFO. Like Chuck Prince, she was installed to steer the bank through regulatory storms. They succeeded. But if the board insists on adhering to its flailing conglomerate model it must more fully examine whether it has the right team in place.
Regulators pounce on Commerce’s insider dealings 16 Jan 2007 The Fed and the OCC are investigating deals involving the New Jersey bank s board, executives and others. It might be old news. Commerce details a ton of deals in its proxy. But fears the regulators have found something new might keep investors away from the stock.
Lord Browne rightly quits BP early 12 Jan 2007 The oil giant's CEO, long considered Britain's best businessman, became a lame duck after losing power struggles with his chairman. Browne's legacy as a great industrialist has been tarnished by mishaps in the US, creating questions over whether BP is too big to manage. The new CEO Hayward is taking over at a difficult time. He must restore confidence among investors against a backdrop of falling oil prices.
Google turns volatility into compensation 15 Dec 2006 The search engine s plan to allow employees to sell vested options is neither free lunch nor an outrageous executive perk. It cleverly capitalizes on investors who may be willing to pay something for stock options that employees may not value at all.
Sistema dusts off Soros’s Russian telecom plan 12 Dec 2006 The billionaire came unstuck in 1997 with his $1.9bn Svyazinvest investment. He hoped to cash in on Russian telecoms restructuring. Now a Russian company is trying again. Sistema is better placed than Soros was. But there are still some big risks.
Wall Street poaches again from the gamekeepers 12 Dec 2006 JP Morgan's hiring of Stephen Cutler as general counsel follows the trend of recruiting senior SEC lawyers to lofty Wall Street perches. Cutler is like an insurance policy for when disaster strikes. JPMorgan could also use a rethink of its legal tactics.
Geronzi conviction could put Capitalia in play 8 Dec 2006 The Italian bank s powerful chairman is set to be suspended over a fraudulent bankruptcy case. If he really goes, the main obstacle to a merger will be removed. This could give ABN Amro another chance to pounce. The Italian bank s powerful chairman has been suspended over a fraudulent bankruptcy case.
Corporate governance: is the Higgs Code past it? 29 Nov 2006 Probably not. But, as ITV and Standard Chartered have shown, many UK companies are finding ways to govern as they want. Shareholders don t seem worried. But that may change the markets turn down. Then they could look for scapegoats.
Willie Walsh is a man in a hurry 26 Nov 2006 The British Airways chief executive is making progress on the big problems, like the pension deficit and the sale of the regional business. But this is far from done and dusted. And crowing about such "successes" could easily backfire.
India’s cost advantage isn’t just with the workers 24 Nov 2006 Companies such as Infosys pay their top management a small fraction of what US bosses get. With the average Fortune 500 CEO paid 600 times as much as the average employee, it s time to outsource the boss.
Goldman’s London executive office response to conflict issues 20 Nov 2006 Sending Van Praag to London and the earlier appointment of Gnodde as cohead of Europe follow a series of controversial attempted deals. Goldman has realised that to avoid brand damage, it doesn't just need smart dealmakers; it needs a 360 degree perspective.
German CEO ousters necessary by-product of globalisation 14 Nov 2006 Deutsche Telekom s coup follows a similar one at VW. All in all, six of the top 20 German corporate heads are under pressure. The common theme the move from local to global is hard work. Germany is getting there, but the road is bumpy.
Stork’s defiance shouldn’t be end of matter 14 Nov 2006 The Dutch company has astonishingly rejected the overwhelming wishes of shareholders who want the company broken up. A legal fight which may help define Dutch shareholder rights may now be on the cards.
Pischetsrieder’s ouster bad for VW shareholders 7 Nov 2006 The carmaker's chairman, Ferdinand Piech, has won the longrunning power struggle with the man he anointed as CEO five years ago. Piech's will to retain power stymied Pischetsrieder s revitalisation attempts. His departure leaves investorunfriendly managers in control.
Overstock understocked with capital 7 Nov 2006 The internet retailer s CEO, Patrick Byrne, has spent more time fighting critics allegedly led by a Sith Lord than running the business. His efforts have been entertaining, if misplaced. The group may need to raise more cash next year. That will be very difficult.
Washington Post trumps NY Times 3 Nov 2006 Four years ago, these two newspaper dynasties tangled under the Eiffel Tower over the IHT. But it was a pyrrhic victory for the Times. Since then the Times has lost half its value the Washington Post none. The way they are governed may partly explain why.
Peugeot needs new CEO – now 27 Oct 2006 The French car company can t seem to shake off the doldrums. It just issued another profit warning. The current CEO is a lame duck, and search for a new one is dragging on. But Peugeot can t afford to wait. The French car company can t seem to escape the doldrums. It just issued another profit warning.
White squireen buys into Aer Lingus 18 Oct 2006 It s not clear what mobile phone bigshot Denis O Brien is up to. But he may be looking to block Ryanair s bid for patriotic reasons. Whatever his motives, his emergence is another hassle for Ryanair boss Michael O Leary.
Investors cheer as backdaters walk the plank 17 Oct 2006 The stock options scandal has so far led to the departure of bosses at five US companies. On average, that s benefited shareholders. It appears that investors largely consider getting rid of the boss a small price to pay for removing uncertainty.
NBC is still GE’s albatross 13 Oct 2006 The industrial giant s entertainment business remains a drag on earnings and the company s weak link. Things may improve next quarter, but patience is wearing thin. Shareholders should support a spinoff of the business.