Management & Leadership

Philip Green escape is bad omen for UK high street

13 June 2019

The British retail baron saved his empire by pushing through an aggressive restructuring. Landlords agreed to cut rents by up to half, despite the risk that other tenants will demand similar discounts. The deal shows the fragility of UK retailers – and the property they occupy.

Reckitt’s new face has a lot to prove

12 June 2019

The maker of Nurofen and Durex has chosen PepsiCo executive Laxman Narasimhan to be Rakesh Kapoor’s successor as boss of the 45 billion pound group. An outsider may bring fresh remedies. But the first-time CEO will have his work cut out to fix the problems facing his new employer.

Irish central banker job glitch may be a blessing

11 June 2019

The government was thrilled to recruit a New Zealand Treasury official as its new governor. Now he faces an investigation about how he handled early accessing of budget information. If things go wrong, Ireland has a second chance to give Deputy Governor Sharon Donnery the job.

Foxconn leaves room for governance improvement

11 June 2019

Taiwan's $32 bln iPhone assembler has missed an opportunity with its first investor day. A management rejig is encouraging, but stops short of a succession plan. Worse, it fails to clarify departing boss Terry Gou’s future role. Shareholders will be left only a little wiser.

Renault-Nissan clash exposes flaws in Fiat deal

10 June 2019

The French carmaker has threatened to block its Japanese ally’s governance overhaul, while its state shareholder might sell. The contrasting manoeuvres may help revive a merger with Fiat Chrysler. But evidence of messy governance is more likely to put off a potential partner.

Sanctions victims compare scars in St Petersburg

7 June 2019

Vladimir Putin is casting his annual economic forum as a haven for countries and companies targeted by the U.S. government. Chinese President Xi Jinping’s attendance is a coup. But any broader alliance between the targets of Washington’s displeasure remains in its infancy.

Buffett may find value in crypto lunch ‘n’ learn

3 June 2019

Blockchain developer Justin Sun can afford the $4.6 mln he has bid for lunch with the Berkshire Hathaway boss. Any shift by Buffett, who has labeled bitcoin a fraud, could ignite digital assets. The sage of Omaha will get a check for his charity and a much-needed tech tutorial.

China booze giant raises empty glass to investors

30 May 2019

Thirsty investors signed up en masse for Kweichow Moutai’s yearly gathering. The $166 bln distiller addressed concerns about why its parent created a unit that could funnel business away from the listed outfit. The candidness is welcome but it won’t avert a governance hangover.

Imagine choosing Mario Draghi’s successor on merit

29 May 2019

The race to replace the European Central Bank boss is underway. Finland’s Olli Rehn says competence, rather than nationality, should decide the choice. Breakingviews ranks the candidates on policy experience, open-mindedness, and their ability to cajole investors and citizens.

Nissan gets cheap ride on Fiat Chrysler bandwagon

28 May 2019

The Japanese carmaker could reap over 1 bln euros of savings if 20-year partner Renault merges with its Italian-American rival. It also would curb France’s influence, give Nissan a seat at a bigger table and buy it time to regroup. Diluted strategic clout is a small price to pay.

Central banks’ plain talking has perils

28 May 2019

Monetary policymakers increasingly want to speak directly to the public, partly to defend and justify their independence. A conference in Ukraine showcased this desire – but also the resulting imperative to speak more simply. Stripping away nuances and caveats may backfire.

Veteran Hong Kong tycoon leaves bank in a bind

28 May 2019

After 38 years as Bank of East Asia’s CEO, David Li is stepping back and his sons will take over. Returns have been lacklustre as the $9 bln lender battles Paul Singer’s Elliott, which has sued over a share issuance and wants the board to sell. A shakeup is overdue.

May’s replacement will face same Brexit dilemma

24 May 2019

The British prime minister’s resignation was inevitable. But the Conservative party’s next leader will have no chance of negotiating a better Brexit deal, and faces the same parliamentary opposition. That leaves a risky election as one of the few remaining options.

Closing diversity gaps involves no mystery

23 May 2019

Many global asset managers think improving diversity compromises returns. Meanwhile JPMorgan persuaded most shareholders that disclosing its gender pay gap was too onerous. These are excuses. The solution is simple: show the gaps, close them, or expect lawmakers to step in.

Boeing boss’s job is to restore trust – or quit

22 May 2019

The aerospace giant has a technical fix to the problem that caused two 737 MAX crashes. The real challenge for CEO Dennis Muilenburg is to regain the confidence of regulators and the public. That starts with owning up to mistakes made. If he isn’t up to the task, he should go.

Indian investors missed memo on crony capitalism

20 May 2019

Companies linked to Anil Ambani and Gautam Adani jumped in value after exit polls tipped Narendra Modi to win easily. Both tycoons are deemed close to the prime minister who has, in fact, made strides tackling corruption. The market moves imply perceptions will be hard to change.

Elon Musk rewrites fast-moving Tesla cash story

17 May 2019

The electric-car maker’s CEO is mandating “hardcore” cost controls, admitting Tesla could burn $2.4 bln of new capital in 10 months. That puts growth plans in question. It also seems to contradict earlier rosier statements. Investors and watchdogs should have a few questions.

Mourned Aussie prime minister raises ballot bar

17 May 2019

Bob Hawke, dead at 89, floated the currency, boosted trade and broadly opened the country. Though his eight-year tenure ended in 1991 as Australia slid into recession, there hasn’t been one since. His legacy looms large as voters go to polls this weekend, amid a cooling economy.

Trade row adds to headaches for next Foxconn boss

15 May 2019

The iPhone assembler’s quarterly profit fell a worse-than-expected 18%, as tech demand cools. A U.S.-China spat is escalating too. Founder Terry Gou has sought to diversify away from Apple for years, in part by scrambling up the value chain. His successor will need to climb faster.

EssilorLuxottica’s boardroom truce is fuzzy

13 May 2019

Chairman Leonardo Del Vecchio and his French counterpart have asked their lieutenants to jointly lead strategy at the $54 bln eyewear giant. The ceasefire averts damaging litigation at the newly merged group. But it won’t make the search for an external CEO much easier.