Rio’s snap succession makes bad news look worse 17 Jan 2013 The miner’s investors were expecting a big writedown, although maybe not $14 bln, including $3 bln on a 2011 African coal deal. But even though the new CEO, Rio iron ore chief Sam Walsh, is experienced and capable, the decision to replace Tom Albanese immediately looks rushed.
Big-shot banker class of 2012 gets back to work 8 Jan 2013 Though it’s not the top job at Barclays, JPMorgan’s Jes Staley is joining hedge fund BlueMountain for what could be a less stressful but lucrative role. He’s not the only Wall Streeter seeking a gig. Diamond, Taubman, Pandit & Co may find power and glory similarly elusive.
New Anglo boss needs free hand to make changes 8 Jan 2013 Mark Cutifani’s operational nous and South African experience make him a good choice to run Anglo American. But the miner’s incoming boss should set his own agenda, including examining a breakup. Anglo’s institutional inertia already threatens to undermine his authority.
Chesapeake sets unlikely governance reform example 8 Jan 2013 The U.S. gas firm’s revamped board slashed CEO Aubrey McClendon’s bonus to zero and reined in other perks. They’re overdue steps for Chesapeake, which has a long way to go to restore credibility. Still, there’s hope for similarly abused shareholders elsewhere in the oil industry.
Rights issue rethink could ease sting for Deutsche 8 Jan 2013 Anshu Jain and Juergen Fitschen vowed to lift Deutsche’s capital without tapping shareholders. But U.S. capital rules, Libor costs and non-core losses up the ante. A 5 bln euro rights issue might nettle investors - but markets are looking favourable.
Rothschild’s Bumi shake-up puts cart before horse 8 Jan 2013 The British financier wants to sack most of the board of Bumi, the stricken coal miner, and its new CEO. His slate of replacements is impressive but his shake-up plan looks half-baked. The first priority should be completing a proposed split with Indonesia’s Bakrie family.
Oil barons and tech hipsters share a dark side 7 Jan 2013 They seem so different. But SandRidge’s CEO and some peers jet around at shareholders’ expense, while at Facebook and Google founder-bosses are insulated from owners by super-voting rights. Clubby boards also feature in both sectors. The oil business may prove easier to clean up.
India’s corporate governance cleanup is welcome 7 Jan 2013 A new law seeks to make it difficult for the same person to be both CEO and chairman. The regulator also wants to ensure listed companies have truly independent directors. The changes, which are tougher than some more advanced countries, will narrow India’s governance discount.
Shareholder votes will be a feast for legal eagles 4 Jan 2013 Restrained from suing over securities fraud, lawyers are starting to prey on dodgy disclosure in corporate elections. Say-on-pay votes are popular, but anything needing investor approval is fair game. Starved of other business, attorneys’ hunger for these suits can only grow.
Wall St could learn a thing or two from Detroit 3 Jan 2013 Both needed government aid in 2008. But it is the automakers that have restructured and become decently profitable in straitened times. Detroit’s Big Three still have work to do, but they have responded better. Motown’s chiefs can more easily justify big pay days too.
Bank CEO survivors’ club may shrink again in 2013 27 Dec 2012 Of the major bank chiefs who had their jobs before the crisis, three remain: Goldman’s Lloyd Blankfein, JPMorgan’s Jamie Dimon and Brady Dougan at Credit Suisse. Each has had setbacks. But the two U.S. bank heads appear to have shrugged them off. Dougan looks more vulnerable.
Diamond Bob will bounce back in 2013 21 Dec 2012 A toxic brew of Libor, bonus spats and regulatory ire led to the ousting of the Barclays CEO in 2012. Yet investors will soon twig that Diamond’s bank wasn’t the only fiddler of interbank rates. He’s unlikely to land another big CEO gig, but he may resurface.
Deutsche Bank CEOs are running out of chances 14 Dec 2012 The last week has seen Deutsche warn on Q4, suffer police raids and be forced to pay corporate damages. True, the issues relate mainly to the bank’s history. But Anshu Jain and Juergen Fitschen now have no margin for error as they try to move Deutsche on from its, and their, past.
Barclays’ Hector Sants hire risky for both parties 12 Dec 2012 The UK bank has appointed the ex-FSA chief executive to a key compliance role. If Barclays moves on from its Libor woes, Sants’ image as a regulator who stood up to it before the scandal will be cemented. If it doesn’t, the bank will look crafty and he will look a stooge.
Freeport deal triangle gets cozier and cozier 7 Dec 2012 The mining group’s market value has plunged $6 bln following news of its foray into energy. Yet the chairman will come out ahead. Now it seems the boss of one target, Plains Exploration, will collect $130 mln and a pay rise. Freeport’s board owes shareholders an explanation.
EADS’ governance rejig falls short of true reform 6 Dec 2012 Paris and Berlin will reduce their influence over the aerospace group. Private shareholders Lagardere and Daimler will be free to divest their stakes. But EADS is still a long way from the kind of reform that would prevent unwarranted government meddling in its operations.
Freeport’s $20 bln splurge lives down to tradition 5 Dec 2012 The miner’s complex plans to buy oil explorers Plains and McMoRan swiftly erased $5 bln of value. Freeport Chairman Jim Bob Moffett also runs and partly owns McMoRan, which gets a rich 74 pct premium. The strategic and governance bravado affirm the industry’s Wild West culture.
ThyssenKrupp boxed in by dilapidated governance 4 Dec 2012 The steelmaker has survived an orgy of mismanagement that would have annihilated most companies. New management is trying hard to turn things around. Unfortunately, its room to manoeuvre is limited by a controlling foundation, which has too much power and not enough sense.
SandRidge CEO sets bar even lower for oil patch 3 Dec 2012 Tom Ward isn’t the first energy boss to live large at shareholders’ expense. But his record at $3 bln SandRidge would make TV’s J.R. Ewing blush. Aside from lavish pay since the company went public, the CEO has upgraded to a fleet of jets. Angry owners are right to want him out.
Groupon discounts dual-class share structures 30 Nov 2012 CEO Andrew Mason and Chairman Eric Lefkofsky are locked in a dysfunctional drama over how to run the flailing company. Super-voting shares like the ones both men own are meant to give founders flexibility. But Groupon is a reminder of just how dangerous the arrangement can be.