Management & Leadership

Shareholders need sharper teeth in UK pay battle

15 August 2018

The average CEO pay in the UK’s largest listed companies increased by 11 percent last year, and is now 167 times that of the median worker. That’s in spite of a move by investors to hold boards to account. More frequent votes on pay, and tougher performance targets would help.

WPP has least bad CEO at its fingertips

13 August 2018

The ad group has yet to replace Martin Sorrell four months after his exit. External candidates are proving hard to come by. Best to appoint de facto interim boss Mark Read on a permanent basis. He’s tech savvy and has insider knowledge that will help unify the sprawling business.

Thyssenkrupp makes investors slightly less angry

9 August 2018

The ailing German conglomerate’s boss Guido Kerkhoff has set margin targets for its various businesses, after shareholder pressure. It’s a start, but the group has missed goals before. And Kerkhoff’s interim status makes it harder to tackle more radical solutions, like a breakup.

Don’t expect tech giants to stifle Alex Jones

7 August 2018

Facebook, Apple, Alphabet et al have, after excessive vacillation, taken the hateful rantings of the Infowars founder off their platforms. As private companies, that’s their right. But until Jones is bankrupted for libel, he will have many other ways to spread his noxious bile.

Standard Life Aberdeen needs more activist touch

7 August 2018

The asset manager formed from last year’s merger of Standard Life and Aberdeen keeps losing funds. Cutting costs and returning capital have failed to close the discount at which the company trades to peers. Selling the India business and ditching a twin-CEO structure might help.

Elaine Wynn’s deft hand puts house in order

6 August 2018

By arranging to install an industry veteran as independent chairman, the Wynn Resorts co-founder has played her cards wisely. The deal protects her stake in the $16 bln casino empire and ends months of management turmoil. Now the company can focus on real challenges, like Macau.

Nooyi leaves Pepsi wondering what might have been

6 August 2018

The $166 bln food-and-drink giant’s CEO is leaving after 12 years. She successfully fended off activists seeking a breakup as returns underperformed Coke. Though Pepsi has had a good run more recently, her successor Ramon Laguarta will need to reconsider the conglomerate.

Vulnerable Toyota enjoys a moment in the sun

3 August 2018

Japan's largest automaker earned nearly $6 bln last quarter, a 7 pct bump. That’s a relief after Nissan, where a drop in U.S. sales weighed. Still, executives are right to strike a cautious tone while Trump's trade guns remain aimed at Tokyo: Toyota is less protected than rivals.

Viewsroom: CBS’s $184 mln #MeToo challenge

2 August 2018

That’s what CEO Les Moonves gets if he leaves the U.S. TV network – unless fired for cause. That’s rare in corporate America. But allegations he sexually harassed women put the board on the spot. Plus: Hong Kong battles the Big Apple for IPOs. And China faces a vaccine scandal.

CBS directors need to prepare to fire their CEO

2 August 2018

Les Moonves was accused of sexual harassment in a published report. The company is belatedly investigating. If he violated CBS rules, the overpaid Moonves should lose the $184 mln he could collect if terminated without cause. That would partially redeem an otherwise feeble board.

GAM plays canary in bond liquidity risk coalmine

2 August 2018

Redemption requests spiked after the Swiss hedge fund suspended one of its asset managers. Turning down such demands prevents less agile clients from being penalised. But the move highlights the industry-wide problem of how little it can take to gum up apparently liquid funds.

Fund managers’ twin-CEO model has short shelf life

1 August 2018

Janus Henderson has named Dick Weil as sole chief executive, ditching a two-headed model put in place when the group was formed last year. The integration of Henderson and Janus is nearly done. But clunky governance is a distraction from the big challenges facing money managers.

How Sergio Marchionne saved Fiat and Chrysler

30 July 2018

The automakers’ former boss, who has died at 66, rescued both from the wrecker’s yard. His push for breakups and consolidation also helped produce better shareholder returns than his main rivals. A new selection of Breakingviews columns offers a taste of his 14-year tenure.

Viewsroom: Sergio Marchionne’s legacy

26 July 2018

The sudden death of Fiat Chrysler’s CEO has robbed the car industry of one of its most colorful – and successful – leaders. Antony Currie, Rob Cox and Lisa Jucca look back over his 14 years at the wheel and discuss what’s on the road ahead for his successor Mike Manley.

China problems could be the making of new FCA boss

25 July 2018

Mike Manley’s first challenge is to complete Sergio Marchionne’s unfinished business in the Middle Kingdom. His predecessor failed to make inroads in the world’s biggest car market and the U.S. trade war has hit sales. FCA’s Jeep division could be helpful in turning the tide.

Cox: The Agnellis will miss Marchionne most of all

25 July 2018

Tragedy and a wise call by John Elkann, the family’s then-28-year-old figurehead, put the Italian-Canadian in charge at Fiat in 2004. Marchionne, who has died at 66, turned assets worth 5.5 bln euros into nearly 60 bln. As a CEO he may be replaceable; as Elkann’s mentor he’s not.

Deutsche Bank will struggle even to hurdle low bar

25 July 2018

The German bank is targeting a 4 percent return target for 2019. To achieve it, the German lender requires revenue to hold steady while cutting costs to 22 billion euros. Given ongoing declines in the investment bank, even that modest goal looks ambitious.

Marchionne’s reformist legacy at risk in Italy

24 July 2018

Hailed as an Italian Thatcherite, the most successful car boss in a generation challenged rigid labour rules at home. Standing up against unions and local lobbies, he raised productivity and saved jobs. His absence will make it easier for Rome’s new bosses to go backwards.

Stock picker’s exit a sign of the hedge-fund times

23 July 2018

Leon Cooperman is parting with investors after nearly three decades to turn his Omega Advisors into a family office. The value investor was an anachronism in a field led by systematic giants like Ray Dalio’s Bridgewater. Going out while markets are on a high, at least, is shrewd.

Papa John’s poison-crust defense is justified

23 July 2018

The U.S. pizza chain has adopted a mechanism that would dilute ousted founder and largest shareholder John Schnatter if he tries to gain creeping control. It will keep other bidders away too. Such measures often aren’t helpful, but in this case they offer needed breathing space.