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Management & Leadership

Mukesh Ambani lays groundwork to divide and rule

29 Jun 2022

The tycoon’s son Akash is taking over the telecom unit as a first step in transferring the $220 bln empire to his three children. Spinoffs will probably follow. Ensuring family interests align should help avoid a repeat of his own epic sibling feud and preserve the group’s power.

Japan’s activists chip away slowly but unsurely

29 Jun 2022

Toshiba adding representatives from two pushy investors to its board represents another landmark for the world’s third-biggest market. The number of campaigns is only inching up, however, and it’s mostly smaller companies being targeted. The slog involved makes progress tough.

Happy-employee laws miss real problem: bad bosses

28 Jun 2022

Canada’s most populous province has passed a law on the so-called right to disconnect, joining a handful of European countries. But Ontario’s new policy is vague, difficult to enforce and doesn't tackle the real reason for employee burnout, namely toxic workplace culture.

Capital Calls: Chinese fishermen, UK’s Jupiter

28 Jun 2022

Concise views on global finance: Joe Biden goes after the People’s Republic’s commercial fishing fleet; the fund manager’s new chief executive has an even tougher task than his predecessor.

Naspers “put” tackles one of its Tencent problems

27 Jun 2022

The South African firm and its Dutch offshoot will buy back stock by slowly trimming their $133 bln stake in the Chinese tech giant. Tax liabilities and clunky governance remain valuation drags. But investors can worry less about Naspers blowing its riches on other startups.

Ray-Ban tycoon leaves behind unfinished business

27 Jun 2022

EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.

Toshiba ballot tees up a fresh Japan litmus test

27 Jun 2022

The $18 bln conglomerate backed board candidates from pushy investors Elliott and Farallon to rebuild shareholder trust. Then it helped broadcast another director’s opposition to them, undermining the effort. How domestic funds vote will gauge corporate governance progress.

CEO’s exit puts $30 bln cancer specialist in play

21 Jun 2022

Founder Clay Siegall quit U.S. oncology biotech Seagen after a domestic-abuse charge. Merck has already spied an opening into a hot area of cancer treatment. Rivals Roche, Pfizer and Novartis may also want to get involved. But Seagen’s size will create regulatory problems.

Hong Kong’s last governor on dealing with China

21 Jun 2022

Chris Patten was Britain’s top representative in the colony before its handover 25 years ago. In this edition of The Exchange podcast he talks about his newly published diaries, businesses sucking up to the People’s Republic, and whether the West will defend international rules.

Wirecard exposed finance’s scary credulity

17 Jun 2022

The payments group collapsed in 2020 after admitting $2 bln of its cash was fake. “Money Men”, a book by the FT journalist who uncovered the scandal, describes a chaotic and unsophisticated fraud. All the more shocking that analysts, advisers, auditors and regulators were fooled.

Santander picks anti-Orcel as new CEO

17 Jun 2022

After bungling the hiring of the former UBS banker in 2019, Executive Chair Ana Botín and the board have picked a safe choice in Héctor Grisi. The insider won’t require a hefty payout and has experience running a retail bank. He’ll need it given Santander’s lowly share price.

Samsung opens its wallet to a wary chip market

16 Jun 2022

Boss Jay Y. Lee's European trip has sparked hope that the South Korean conglomerate will finally use its $84 bln cash pile for M&A. Beat-up valuations at mooted targets like NXP make consolidation attractive. Appeasing concerned governments, though, will be a tough sell.

Rift at the top casts doubt on Atos’ breakup plans

15 Jun 2022

The French IT company’s shares slumped after its new CEO resigned just as it broached a tentative plan to divide its cybersecurity and legacy infrastructure businesses. Longer-term, Atos needs radical surgery. In the short run, delivering on its targets would be a start.

EU women-on-boards plan only scratches the surface

8 Jun 2022

The bloc wants listed companies to reserve 40% of non-executive director roles for females. That’s lame, when 60% of graduates are women. And groups with diverse boards tend to deliver higher returns. It’s time for the EU to set a target for full gender parity in the boardroom.

Capital Calls: Fertilizer woes plant seed of doubt

8 Jun 2022

Concise views on global finance: Scotts Miracle-Gro’s profit warning nods to wide effect of commodities price surge.

Wounded PM leaves UK economy in painful limbo

7 Jun 2022

Boris Johnson remains in office even though 41% of his party’s lawmakers voted to oust him. His fragile position, and probable attempts to win back public support, will add to existing economic uncertainty. It’s another reason for companies and investors to look elsewhere.

Casino SPAC is for hardened gamblers only

7 Jun 2022

A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.

Terms don’t kill deals, people do

6 Jun 2022

Thoma Bravo and Anaplan have renegotiated their transaction. Elon Musk officially threatened to back out of his $44 bln buyout of Twitter. Nervous markets make mergers less likely to close. The strength of agreements matters less than the fortitude of directors hashing out deals.

Capital Calls: Microsoft micromanages tech jitters

2 Jun 2022

Concise views on global finance: A 1% revenue shortfall because of a strong dollar normally isn’t that important. Microsoft’s warning reflects how nervous tech investors have become.