US utility watchdogs should flex muscle more often 30 Nov 2012 A state regulator has forced Duke boss Jim Rogers to retire after he pushed out the intended CEO following an $18 bln merger. The episode shows watchdogs’ power. A better use of it would be ensuring electric and gas monopolies invest enough and don’t abuse captive customers.
Musk elan powers SolarCity IPO valuation 28 Nov 2012 The solar panel installer backed by Tesla’s billionaire founder is clouded by complex accounting and government-related risks. The mooted share price puts SolarCity at six times revenue, far exceeding what similar business models elsewhere fetch. Elon Musk moon dust costs extra.
SAC investors set to stew alongside founder Cohen 28 Nov 2012 The $14 bln hedge fund received notice that the SEC may take civil action against it. Those with money at SAC need to weigh the risk. The law moves slowly, but so does the redemption process - it would take investors months to withdraw cash. And they’d risk never getting back in.
Ackermann jibe evokes ghost of Deutsche past 27 Nov 2012 Deutsche Bank has erred by choosing not to send co-CEO Anshu Jain to a parliamentary hearing on Libor. Jain wasn’t directly called, but it still looks evasive. And it has given ex-boss Josef Ackermann the chance to revive an unseemly Deutsche custom of undermining new leadership.
Barclays’ investment bank is too good to lose 26 Nov 2012 Antony Jenkins is feeling the heat from investors. The Barclays CEO is under pressure to cast his investment bankers free and pursue the high street’s more staid returns. But with investment banking making up three-fifths of group revenue, Jenkins can’t afford to set it loose.
HP’s Autonomess should devour Marc Andreessen, too 20 Nov 2012 The Silicon Valley visionary behind Netscape goaded Leo Apotheker, the CEO he recruited to HP, to bet big on Autonomy as part of his “software eating the world” thesis. Andreessen was also integral to the value-destructive Palm deal. HP’s board would be better off without him.
JPMorgan CFO rejig leaves only Dimon unpunished 20 Nov 2012 Promoting Marianne Lake ticks several boxes. It sidelines another top dog, Doug Braunstein, who failed to spot the London CIO mess; adds another woman to the c-suite; and restores the CFO’s place in the hierarchy. Clawing back some of Dimon’s pay would at last harpoon the whale.
Credit Suisse shrinks to fit new realities 20 Nov 2012 The Swiss bank has to deal with straitened times and regulatory pressure for more capital and simpler structures. So it is slashing headcount, including three big chiefs, and making businesses more separate. It looks like the beginning of the end for the one-bank strategy.
ACS shows who’s the boss at Hochtief 19 Nov 2012 The Spanish group is purging the top management of Hochtief 18 months after gaining control of the German builder. What makes sense for struggling ACS could endanger its subsidiary’s future. Investors should learn to mistrust promises made in the heat of takeover battles.
Intel’s next chief can’t be chip off old block 19 Nov 2012 The semiconductor giant’s shine has dulled with the rise of mobile. Being surpassed in market value by Qualcomm illustrates the shift. Retiring CEO Paul Otellini’s replacement will have to tackle smartphones, but time is wasting. Intel also needs to play tougher defense.
Jon Corzine may yet do some good for finance 15 Nov 2012 A congressional report lays MF Global’s collapse at his feet. Lawmakers also blame a familiar litany of cavalier Wall Street behavior, but say a combined SEC and CFTC would have helped. If Corzine’s actions inspire the move, something positive will have come from the situation.
Anglo needs a dealmaker CEO to unlock value 14 Nov 2012 It may be tempting to replace Cynthia Carroll with an operational obsessive who can deliver big projects. That’s one area where the outgoing boss struggled. But the miner really needs a visionary who can make tough calls, like demerging platinum and finding a buyer for the rest.
Inequality hits home for Wall Street middle class 12 Nov 2012 Pity all those 30-ish Greg Smiths who entered the industry after the dot-com bust and tirelessly served MDs minting record bonuses in the leverage boom. Now comp is down and their bosses aren’t moving. Even Goldman’s partnership must make way for the new realities of finance.
Review: Embracing the psychopath within 9 Nov 2012 “The Wisdom of Psychopaths” is a good read lurking within a bad one. Amidst the showboating, Kevin Dutton’s book mines brain science to make a cogent case that some psychopathic traits - seen in CEOs, traders and monks as well as serial killers - are not only necessary, but good.
Lonmin doesn’t have to surrender to Xstrata – yet 9 Nov 2012 The big platinum miner spurned 25 pct owner Xstrata’s demand for management change in return for backing its $817 mln rights issue. It can afford to, for now: the fundraising is underwritten and Xstrata is probably loath to be diluted. But after this battle, Lonmin faces a war.
Activism will only get so far at Danone 7 Nov 2012 Nelson Peltz forced a demerger at Cadbury. Now the U.S. activist is reportedly targeting France’s leading consumer goods group. Danone’s de facto bid-proof status may partly explain its underperformance. A breakup would be a long shot. But management needs a kick all the same.
Morgan Stanley thumbs its nose at UBS approach 5 Nov 2012 CEO James Gorman is tapping fixed-income boss Colm Kelleher to run the investment bank. Picking him over M&A counterpart Paul Taubman, who is leaving, reinforces Morgan Stanley’s belief it can make a serious go of FICC. The clock’s already ticking, though, on whether it can.
Pigeons and paranoia belie China’s surprising calm 2 Nov 2012 Flying pigeons, opening taxi windows and buying knives are among the activities banned in Beijing during China’s leadership handover. The anxiety shows cracks in the system, but what’s remarkable is how China remains basically stable, and not all because of heavy-handed measures.
Shareholder activism at Netflix distinctly B-list 1 Nov 2012 Carl Icahn’s arrival sent shares of the online video service soaring. He’s demanding a sale of the company. But his stake is largely synthetic, giving him few votes. That, and his poor track record at Blockbuster, discredit his pitch.
Ford gives rope to budding boss Mark Fields 1 Nov 2012 Alan Mulally isn’t ceding his CEO title, but he is handing most of his operational responsibilities to the automaker’s North America head. Fields, who steered Ford’s biggest region back to profit, will be COO. Come Mulally’s exit, now set for 2014, the top job will be his to lose.