Management & Leadership

StanChart dream reveals Barclays’ limited options

23 May 2018

The UK bank has considered merging with rivals including Standard Chartered, according to the Financial Times. Combining the two makes little financial sense. But it shows Barclays boss Jes Staley has few obvious ways to boost returns and appease activist Edward Bramson.

WPP chairman has too many jobs

23 May 2018

An advisory group says the ad group’s shareholders should oust Roberto Quarta over his handling of CEO Martin Sorrell’s departure. That would be a mistake: his options were limited. But also chairing medical-device maker Smith & Nephew is a stretch. He should focus on one task.

Latest M&S overhaul lacks a clear price tag

23 May 2018

The UK retailer will close 100 stores in an attempt to reverse falling like-for-like food and clothing sales. The revamp, sped up by new Chairman Archie Norman, set the group back half a billion pounds last year. With few details about future costs, investors can shop elsewhere.

Oil index deal reinvents an old buyout trick

23 May 2018

Chinese-backed ZZ Capital International has struggled to close a roughly $800 mln purchase of U.S. data provider Alerian. Now two of its top dealmakers are leaving, and resurrecting the takeover at their new shop. That puts a fresh spin on pass-the-parcel deals by private equity.

NYSE outgoing boss prepares to eat own cooking

22 May 2018

Tom Farley is leaving the exchange to run a blank-check company backed by hedge-fund manager Dan Loeb that will invest in fintech. While at NYSE, Farley helped make it easier for so-called SPACs to list. He may find hosting these shell companies beats running and filling them.

Deutsche fightback begins with legacy asset reveal

21 May 2018

The German lender’s balance sheet includes about 50 billion euros of unprofitable trades which drag down its investment bank’s return on equity. Reporting them separately would attract attention to past mistakes – but also offer a clearer picture of the bank’s recovery.

Baidu gets $9 bln warning to stay the course

21 May 2018

The surprise exit of COO Lu Qi sparked a big drop in the Chinese search engine's shares. He helped Baidu focus on search and AI, lifting the company's market value since his arrival from Microsoft in 2017. Boss Robin Li has been sent a strong message about what investors want.

Les Moonves is starting to endanger his record

18 May 2018

The CBS boss has done shareholders proud. Yet wading into what may be a long legal fight with controlling owner Shari Redstone serves no one. It also suggests a touch of hubris. The overpaid Moonves has it covered, though: If he’s fired, he could pocket more than $100 mln.

CBS, Shari Redstone litigate selves off M&A rails

17 May 2018

A judge denied the $20 bln media firm’s restraining-order request against its controlling shareholder. But CBS may be able to argue Redstone is breaching her fiduciary duty. It almost ensures a long legal drama that’ll shunt deals with Viacom or other companies onto the sidings.

Wells Fargo’s new cloud has bigger silver lining

17 May 2018

Some employees at its business-banking unit altered client documents. It’s another cultural black mark on the scandal-plagued $262 bln lender. But its handling of the incident suggests CEO Tim Sloan’s overhaul of risk management and procedures is starting to make a difference.

Facebook has a boardroom problem – but what?

17 May 2018

Two proxy advisers offer investors different reasons to withhold votes from mostly different directors – ISS includes Mark Zuckerberg. The CEO has control, so any such move would only be a protest. Through the confusion, though, shines the need to puncture Zuckerberg’s bubble.

Royal Mail puts absurd twist on golden handshake

17 May 2018

The UK postal service’s 5.8 mln pound payment to new CEO Rico Back is a familiar way to get a chosen candidate to jump ship. Yet Back already works for a Royal Mail subsidiary. It adds a layer of farce to so-called “buyouts” that have hit investor pockets and board reputations.

Vodafone CEO leaves hard work to his successor

15 May 2018

Vittorio Colao will be replaced by CFO Nick Read. Discipline in M&A and investment has helped the $72 billion mobile group beat peers’ returns. Read’s job is to make a success of the giant Liberty Global deal at a company that’s more used to pruning than growing its portfolio.

Barclays slap calls time on UK banker-bashing

11 May 2018

Regulators fined CEO Jes Staley 642,000 pounds for trying to identify a whistleblower. The relatively low penalty reflects lenience towards misbehaviour which doesn’t involve ill-gotten gains or investor losses. Bank chiefs can no longer complain they are being treated unfairly.

Billionaire’s Burberry sale is fashionably early

9 May 2018

The luxury brand’s top investor, a vehicle of Albert Frere, has sold its 6.6 pct stake. It’s an odd move for the typically long-term owner. But Burberry’s valuation rivals peers like LVMH, and boss Marco Gobbetti’s turnaround will be a lengthy process. It’s a good time to exit.

Air France offers Macron a hands-off opportunity

7 May 2018

The French-Dutch airline’s CEO quit after staff rejected his pay deal, triggering market chaos. The travails of insolvent peer Alitalia provide a window into the toxicity of unruly unions and bad state policy. Resisting the urge to meddle will help the president’s pro-business push.

Musk and Buffett make a natural pair trade

7 May 2018

A tiff about moats and candy has reignited the friction between the two billionaires. Think like a Warren Buffett investor, and Elon Musk’s Tesla is the epitome of a terrible investment. But the two do have common ground. And betting against either of them requires guts.

Elon Musk charm autopilot suffers alarming glitch

3 May 2018

Tesla’s boss cut off Wall Street analysts for asking “boring, bonehead questions.” But that’s the nature of earnings calls. Musk’s history of missing targets, burning cash and raising capital makes “dry” financial queries entirely apt. Brushing them off won’t help Musk’s cause.

Tesla speeding toward capital raise crunch time

2 May 2018

The electric-car maker lost $710 mln last quarter. It also missed more production targets, annoyed a regulator, lost more key staff, clamped down on costs and got less than ecstatic support for CEO Elon Musk’s bonus plan. Better to sell new stock now than wait for more bad news.

Elaine Wynn needs to turn up the heat

2 May 2018

The casino company’s co-founder wants to replace a director, but not with herself or an associate. The soft approach was rebuffed by the company, which claims it’s changed since her ex-husband quit. Elaine needs a sharper approach – or activist help – if she wants to be heard.