Management & Leadership

American CEOs may be half way to enlightenment

19 August 2019

The Business Roundtable touted a pledge by corporate leaders to run companies more for the greater good as if it’s a new era. In reality, shareholder primacy has reached a natural limit. Such promises, however, require concrete steps. One might be breaking down CEO primacy, too.

Cathay shakeup clarifies China’s corporate muscle

16 August 2019

Boss Rupert Hogg and a top deputy resigned abruptly after the $5 bln airline scrambled to quell a mainland backlash related to Hong Kong protests. State carrier Air China owns a smaller stake than Swire, but Beijing’s sway looks bigger. The timing couldn’t be worse for Cathay.

Nio flashes warning for China’s luxury car market

16 August 2019

A co-founder of the $3 bln Tesla wannabe has quit, the latest in a string of departures. It comes after battery fires and other strategic missteps at the electric-vehicle maker. But its woes may also portend slowing premium demand: that should worry peers.

Dutch insurer revisits ghosts of low yields past

15 August 2019

Despite hiking its dividend, Aegon’s shares dived after a sharp drop in solvency. That revives bad memories of the insurer’s volatile capital a few years back. Incoming CEO Lard Friese’s first job is to show investors he’s better at managing the group as low rates bite once more.

New boss must change HSBC ethos without losing it

13 August 2019

Chair Mark Tucker wants a CEO to reverse what he sees as the $149 bln bank’s underperformance. Shifting culture at a lender with 230,000 staff won't be easy. But with Tucker and new Finance Director Ewen Stevenson already outsiders, picking a HSBC alumnus may be the best move.

New RBS CEO will have her hands tied

12 August 2019

The UK state-controlled bank has selected 25-year RBS veteran Alison Rose as boss, according to media reports. An insider makes sense for a market leader with limited strategic options. RBS cannot get much larger, and can do little about the economy, UK politics or Brexit.

Review: How greedy executives choked off growth

9 August 2019

Interest rates are ultra-low and earnings are at record levels, so why has corporate investment slumped? In “Productivity and the Bonus Culture”, economist Andrew Smithers points the finger at soaring executive compensation. His rigorous diagnoses call for some radical cures.

HSBC’s CEO volte-face puts chairman on the spot

5 August 2019

The board led by Mark Tucker forced out Chief Executive John Flint just 18 months after picking him to run the global bank. Finding a permanent replacement could take up to a year, leaving the bank adrift. Investors will hold the former AIA boss accountable for what happens next.

CEO exit leaves HSBC with worrying gap at the top

5 August 2019

John Flint has parted company with the Asia-focused lender after 18 months at the helm. The abrupt exit of a veteran banker overshadows decent earnings and a $1 bln buyback. Given mounting uncertainty around Brexit, a trade war and Hong Kong, it's a bad time to be adding more.

Old Mutual row shows merit of the quiet CEO payoff

31 July 2019

The South African insurer’s shares lost 5% after sacked boss Peter Moyo convinced a court he should get his job back, at least temporarily. A public slanging match looks damaging for all concerned. There’s a reason why warring boards and bosses usually settle disputes quietly.

GAM truce marks start of long rehabilitation

30 July 2019

The Swiss asset manager is burying the hatchet with a former employee linked to a $11 bln fund scandal that knocked 60% off its market value. Shelving litigation will help new boss Peter Sanderson focus on rebuilding the franchise. New inflows are an early sign the worst is over.

Santander’s Orcel offensive is double-edged sword

26 July 2019

The Spanish bank accused Andrea Orcel, the ex-UBS banker it backed out of appointing as CEO, of “dubious ethical and moral behaviour”. That calls into question Chairman Ana Botin’s original decision to hire him. This increasingly bitter battle will only produce losers.

Renault’s de-Ghosnification helps up to a point

25 July 2019

The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.

Metro Bank tries cosmetic surgery on gaping wounds

25 July 2019

Chairman Vernon Hill will step down after the UK lender lost a tenth of its deposits. But the founder’s decision to stay on the board may undermine his successor. It’s far from the clean sweep Metro needs to restore confidence amid an accounting mess and collapsing profitability.

Boris Johnson’s political triumph will be fleeting

23 July 2019

Britain’s soon-to-be prime minister has won the office he long coveted. But to keep it, he must either pass a Brexit agreement that eluded his predecessor, persuade his party to leave the EU without a deal, or win an election. Rash promises have increased his chances of failure.

Ted Baker offers tricky embrace for private equity

22 July 2019

Shares in the seller of colourful shirts rose 15% on hopes of a buyout. A low valuation, and the opportunity to expand in Asia may appeal. But the likely involvement of hug-loving founder Ray Kelvin could deter some buyers. And the group’s sluggish growth will limit returns.

Aramco gives bankers new scope for Saudo-masochism

19 July 2019

A second crack at the Saudi oil giant’s stalled $100 bln IPO could mean different bankers. Spurned advisers can comfort themselves that the listing won’t be lucrative and may never happen. The reputational and other issues that plagued the first attempt have only intensified.

Suez boss gets helpful kick in derriere from Amber

18 July 2019

The 8 bln euro French utility, whose history includes the Egyptian canal’s construction, presents a juicy target for the activist. Bertrand Camus just took the reins in May, following years of crummy empire-building returns. He should welcome Amber’s thoughtful approach.

Where is StanChart’s chair when he’s most needed?

17 July 2019

CEO Bill Winters is under fire for calling shareholders “immature” for criticising his pay. But the bank’s board, led by José Viñals, sets remuneration. Having failed to sell the deal in the first place, the Spanish chairman should be the one deflecting shareholder discontent.

New breed of central bankers is harder to read

11 July 2019

Jerome Powell at the Fed and Christine Lagarde, nominated to be the next ECB chief, are lawyers by training. Their thinking is more fluid than predecessors whose economic tenets informed a world view. That has benefits, but also means it’s harder to predict how they will react.