Chesapeake gets pistol-whipping from shareholders 8 Jun 2012 Owners of the besieged U.S. gas giant voted overwhelmingly against renaming directors and the board’s executive pay plan, while favoring a slew of investor proposals to improve Chesapeake’s governance. It’s hard to see how Aubrey McClendon can keep running this circus.
Spain underwhelms with new central bank chief 8 Jun 2012 The government has gone for central bank veteran Luis Maria Linde, a relative unknown who is too old to even finish the mandate. As the Bank of Spain badly needs to repair its battered reputation, former ECB board member Jose Gonzalez-Paramo would have been just the ticket.
UK bosses play dangerous game: pay me or fire me 8 Jun 2012 The bosses of Glencore and WPP say high pay is necessary to encourage CEOs to behave like entrepreneurs and owners. Not exactly. The best entrepreneurs aren’t always the greediest. And heads of listed companies are co-owners. That’s different from owning a private firm.
BofA reject wins Fannie Mae booby prize 6 Jun 2012 No good deed goes unpunished. Tim Mayopoulos, fired as the mega-bank hid Merrill losses in 2008, is the mortgage zombie’s new boss. That won’t improve the firms’ tense relationship. And he’s taking a pay cut. But his integrity and background make him a decent fit for the job.
Investors in India’s Reliance need more to rely on 6 Jun 2012 The Indian conglomerate is underperforming. Reliance also has $14 billion in cash but doesn’t seem to know what to do with it – though it has a half-hearted share buyback programme. Investors gathering for their annual meeting are in need of commercial and financial refreshment.
Pick-a-pay creator follows dodgy product to grave 4 Jun 2012 Golden West founder Marion Sandler has died aged 81. She and husband Herb built a supremely efficient mortgage lender, sold at the top and donated $1.3 bln to political and other causes. But they’ll be remembered as the architects of one of the more egregious mortgage offerings.
Chesapeake board ups governance; now to govern CEO 4 Jun 2012 Finally, investors including Carl Icahn will get to pick four directors at the beleaguered U.S. gas firm, and all board seats will be less secure than before. But even vigorous directors have their work cut out reining in Aubrey McClendon, the company’s founder and 23-year boss.
Activist flushes out Nomura and investor weakness 4 Jun 2012 An anonymous shareholder has filed all 18 independent proposals for the Japanese firm’s annual meeting. Some are peculiar, like suggesting workers squat on the toilet. Others are more mainstream. If nothing else, the secret scribe exposes the supine nature of Japan’s investors.
Eike Batista’s EBX feijoada gets harder to stomach 1 Jun 2012 The Brazilian billionaire’s latest IPO, of a coal subsidiary, went down badly, with shares tumbling 29 pct. Most of his other listings have done poorly, too, including 50 pct falls for the shipbuilding and logistics arms. Even optimistic investors can’t keep digesting such slop.
Generali coup risks one more reason to sell Italy 1 Jun 2012 Shareholders, led by Mediobanca, are seeking to oust the boss of the country’s largest financial institution. Italy could do with a dose of shareholder activism, but this coup may do little to dispel its reputation for intrigue, hardly good for a country in crisis.
John Malone again proves fickle media friend 31 May 2012 The U.S. cable magnate has escalated his fight for control of Sirius XM, the satellite radio company he bailed out in 2009. Malone is known for clever, aggressive tactics, even against Rupert Murdoch. Sirius is another cautionary tale for rival moguls and investors alike.
Xstrata throws down gauntlet to shareholder spring 31 May 2012 Glencore-Xstrata will only go ahead if investors approve retention schemes including a three-year, 28.8 million pound package for Mick Davis to run the merged commodities firm. But shareholders have no easy choices. Voting no risks killing the merger and wounding Xstrata’s board.
China bankers’ bad habits die hard 31 May 2012 The investigation of a top AgBank executive will remind investors of the frauds that dogged Chinese banks of old. Lenders have come far, but low pay, poor disclosure and incomplete reforms leave much scope for bad behaviour. As banks’ balance sheets get bigger, so do the risks.
Old rich send message to Zuckerberg’s ilk 30 May 2012 Acquainted for five decades, the Rothschild and Rockefeller patriarchs are finally launching a transatlantic investment alliance. It’s slower, quieter, more dispersed money than the Facebook founder’s. But it has staying power even hoodied tech billionaires may one day crave.
WPP must prove that Sorrell is worth his pay 30 May 2012 The media group’s investors are angry about a hike in the CEO’s salary and bonus. Sorrell makes a big contribution to WPP’s overall performance, though it’s unhealthy for any company to rely so much on one man. The board needs to show that shareholders benefit from his success.
Li Ka-shing opts for succession China-style 30 May 2012 The HK tycoon has avoided a power scramble by naming his eldest son as heir to his business empire. To ensure Li’s values prevail, his successor will be surrounded by long time acolytes. It’s much like what’s happening in Beijing. In both cases, the newbies will need new tactics.
Chesapeake may need to sacrifice more than assets 29 May 2012 The embattled U.S. gas producer is already dispensing with energy fields to raise cash. Now investors, including uppity Carl Icahn, want directors ousted. Replacing two up for election without Chesapeake’s OK is near impossible. But resistance is counterproductive at this stage.
Buffett steals insider-trading show in absentia 29 May 2012 The Berkshire Hathaway chairman didn’t appear in a New York courtroom last week. But his presence loomed over Raj Gupta’s insider-trading trial in more ways than one and dredged up the still-unsettled role his former lieutenant David Sokol played in last year’s Lubrizol deal.
BP’s latest Russian spat spells more aggro 28 May 2012 The UK oil major is at odds with its oligarch partners in TNK-BP after one of them quit as the joint venture’s CEO. Mikhail Fridman’s exit could be a passing storm. But as BP’s force in Russia declines, such drama is more likely to presage a messy endgame to the partnership.
Prosecutors gain early edge in Raj Gupta trial 25 May 2012 Judge Rakoff largely adopted their version of a preliminary jury instruction a week after allowing them to introduce wiretaps. The former McKinsey boss and Goldman director hasn’t put on his case yet. But he’ll need some breaks soon if he’s going to beat insider trading charges.