Besieged StanChart needs governance booster 13 Aug 2012 Chairman John Peace is spread too thinly. His peers on the bank’s board, some of whom have been around too long, lack financial oomph. A stronger board wouldn’t have prevented the attack by the New York regulator, but it might help the UK bank recover more quickly.
Barclays paves way for new start with David Walker 9 Aug 2012 The troubled UK bank has appointed the City grandee to replace Chairman Marcus Agius. Walker’s public sector and banking experience should smooth relations with regulators. Even if his age makes him more of a stopgap, he’s a solid choice to begin pulling Barclays out of its mess.
Chesapeake’s spendthrift chief can’t help himself 7 Aug 2012 Investors in the cash-strapped gas company were cheered by promises of belt tightening. A new shareholder-selected board adds credibility to this pledge. Yet with CEO McClendon boosting spending on new energy-rich land by 25 pct this year, owners shouldn’t get too excited yet.
Facebook’s market meltdown is far from over 6 Aug 2012 All the red flags apparent at the IPO - overpriced stock, shoddy governance, huge challenges to the business and a damaged brand - still fly today. The most shocking thing about the social network’s $50 bln conflagration of shareholder wealth is that anyone might be surprised.
Best Buy bid looks about as shaky as its target 6 Aug 2012 Richard Schulze, the U.S. electronics chain’s founder, wants to take it private for up to $8.8 bln. His 20 pct Best Buy stake adds credence to the offer, but financing and backers remain elusive. And given where it’s based, going hostile for the embattled retailer could be tough.
Shale writedown tarnishes BHP’s street cred 3 Aug 2012 The miner isn’t the only company to overpay for U.S. shale. But a $2.8 bln writedown on acreage it bought for $4.75 bln last year is embarrassing for a group that trades on its canny reputation. Gas may pay off for BHP eventually, but Marius Kloppers is right to waive his bonus.
Eike Batista adds bottom feeding to tangled web 1 Aug 2012 The Brazilian billionaire is taking his logistics arm LLX private after the share price halved in a year. Investors may rue getting on board with Batista, but delays, losses, missed targets and a slowing economy swamping his complex conglomerate make it a good time to jump ship.
China’s insider culture stains CNOOC foreign bid 30 Jul 2012 The Chinese oil producer’s $15 bln bid for the Canadian Nexen isn’t directly threatened by the U.S. SEC insider trading complaint against a billionaire close to CNOOC. But the case will fortify critics who say that China has a long way to go before it can play by global rules.
Jamie Dimon to Sandy Weill: drop dead 27 Jul 2012 A shake-up at JPMorgan leaves investment banking boss Jes Staley the odd man out. More significantly, Dimon is lauding the idea of knitting together JPMorgan’s parts more tightly just as his former mentor reignited a push to break up big banks. Consider the fight fully rejoined.
Nomura resignations pave way for the Lehman unwind 26 Jul 2012 The departing CEO and COO authored the Japanese brokerage’s purchase of Lehman Brothers. Their strategy wasn’t wrong, just unlucky. While parts of Nomura are doing well, the market is brutal and returns on equity meager. The new broom has a rare chance to suggest a graceful exit.
Vodafone pay endorsement should hearten CEOs 25 Jul 2012 Britain’s “shareholder spring” shouldn’t cow bosses too much. Investors remain relaxed about executives getting filthy rich - provided companies perform, of course. Look at the huge support for Vodafone, the telco whose CEO will make more than 500 times the average UK wage this year.
Deutsche Bank’s profit miss isn’t temporary hiccup 25 Jul 2012 Weak client activity and the falling euro’s impact on costs have driven the German bank to warn that Q2 net income will be only 700 mln euros, 30 pct below forecasts. These aren’t short-term headaches. And Deutsche’s capital and job-cut plans still look less punchy than peers’.
BarCap shrinkage can’t wait for new CEO 23 Jul 2012 The strategic commitment to investment banking ultimately will be a matter for new management at rudderless Barclays. But the residual top brass is already implementing a plan to identify parts of BarCap that may need paring. It could be just the start of bigger cuts to come.
Yahoo pays up for dream of CEO stardust 20 Jul 2012 The fading search firm hopes Marissa Mayer is the ticket to a turnaround. After churning through several CEOs, it’s easy to see why the Google hotshot snagged a $70 mln pay deal. But as J.C. Penney with its ex-Apple boss shows, there are no magic fixes for deep problems.
Spain’s bosses need an internal devaluation 20 Jul 2012 Austerity hasn’t yet caught up with the leaders of Spanish corporations. They typically make a multiple of their European peers, as do board members. Spanish shareholders might take a leaf out of the UK’s “shareholder spring”.
Yahoo tackles existential problem with engineering 17 Jul 2012 Google’s Marissa Mayer is one of the few accomplished females to rise to the top echelon of Silicon Valley’s geek hierarchy. She’s certainly qualified, and probably eager, to become CEO of something. But Yahoo’s problems won’t be so easily solved by rewriting code.
Libor jailbirds would be hollow symbols 16 Jul 2012 Rate-rigging sentences might assuage public lust for Wall Street scalps. But U.S. prosecutors have missed big on financial-crisis villains. Al Capone was nailed for tax evasion. Libor convictions would also miss the point - and might only get real banksters’ distant cousins.
New broom wouldn’t be quick fix for G4S 16 Jul 2012 The outsourcer’s chairman admits the CEO may have to go following the Olympics security fiasco. But the affair may expose deeper flaws in its model, and could prompt the UK to withhold new business. With a rescue bid unlikely, repairing the value destroyed will be a slog.
Jamie Dimon can’t swim past the whale just yet 13 Jul 2012 The JPMorgan boss reckons the CIO trading debacle is behind him. Explanations and fixes from Dimon and his deputies are solid. But it’s still unclear if they’ll pay a price. And newly revealed bad risk data and mismarked trades mean JPMorgan still has a lot of trust to win back.
Ousted Vale CEO returns unshackled by the state 13 Jul 2012 Roger Agnelli was deposed from the Brazilian mining giant last year after resisting President Dilma Rousseff’s meddling. Partnered with billionaire banker André Esteves, Agnelli is back to invest in iron ore and metals. It’s a chance to show he can outperform Brasilia.