New UBS CEO is best answer to a difficult question 20 Feb 2020 The $50 bln group’s ideal successor to Sergio Ermotti would have experience running a big lender along with wealth management and investment banking chops. That’s a rarity. ING’s Ralph Hamers brings cost-cutting and tech savvy. Holland’s pay rules made him an affordable asset.
Coronavirus may come for boards and CEOs 20 Feb 2020 Infectious diseases are inevitable, but the financial havoc they wreak is not. Pandemics and efforts to contain them eat away an estimated 1% of GDP each year. Too many companies have failed to prepare, and shareholders ought not shrug off the Wuhan episode as a black swan.
JPMorgan’s days as governance bugbear are numbered 19 Feb 2020 Lead director Lee Raymond is a bete noire for investors worried about climate change. Yet shareholders consistently re-elect him, favoring the bank’s strong performance over its weak oversight. When CEO Jamie Dimon retires, JPMorgan’s exceptionalism ought to depart with him.
Jeff Bezos climate pledge has more flash than cash 18 Feb 2020 The Amazon boss can without a doubt help with the $10 billion global-warming fund he’s seeding. Microsoft founder Bill Gates could be a role model. But the scale of the climate crisis means even this amount of cash from the world’s richest person has whiffs of do-gooder-ism.
DuPont adds old catalyst back to corner office 18 Feb 2020 Veteran Ed Breen is taking the CEO job as well as remaining executive chairman. The board wants faster improvements at the $39 bln chemicals group than ousted Marc Doyle managed. The success of the creation and three-way split of DowDuPont, partly led by Breen, is in the balance.
HSBC investors are a step ahead of the interim CEO 18 Feb 2020 Noel Quinn is aiming for a return on tangible equity of up to 12% in 2022. He plans to get there by axing $4.5 bln in costs and better allocating capital. For all the upheaval, the shares already imply a similar level of profitability. The main risk now will be missing the mark.
BHP’s best-laid plans may go awry for new boss 18 Feb 2020 The mining giant delivered a 39% rise in half-year profit, giving a running start to CEO Mike Henry. Since assuming the role on Jan. 1, virus-hit China has threatened iron ore demand. A strategic focus on investing in growth and returning capital to shareholders could be on hold.
Moncler loyalty share plan sullies poster boy look 14 Feb 2020 The $11 bln down-jacket maker wants to double voting rights for long-term owners. That would give boss Remo Ruffini a stronger hand in talks with potential suitors. Weakening shareholder rights might however dent Moncler’s good public company image and irk investors.
Samsung defies corporate governance logic 14 Feb 2020 The South Korean tech titan’s chairman has quit just months after heir Jay Y. Lee left the board. Even with yet another leadership crisis, Samsung stock trades at a record high and its valuation keeps soaring. As questions about growth mount, shareholders may regret the optimism.
Credit Suisse’s staid future is a mixed blessing 13 Feb 2020 Outgoing CEO Tidjane Thiam unveiled decent 2019 results, and said recent Instagram posts had not been his idea. The odd mix echoes a tenure that had highs and lows. New boss Thomas Gottstein may give investors a less bumpy ride, but that may not improve the bank’s valuation.
Incoming Heineken boss has a tricky first few sips 12 Feb 2020 Jean-Francois van Boxmeer is leaving the world’s second biggest brewer after 15 years as CEO. His legacy is a firm adept at selling pricier beers in fast growth markets like Vietnam and Mexico. With both troubled, new boss Dolf van den Brink’s issue now is whether to change tack.
KKR can profit from Gulf hospital emergency case 10 Feb 2020 Buyout funds including the U.S. group are eyeing the $1.9 bln NMC Health. Its value has sunk amid attacks by short-seller Muddy Waters, poor disclosure and forced sales by large shareholders. It’s a risky move, but the depressed share price offers any buyer a healthy cushion.
Thiam exit only first on Credit Suisse to-do list 7 Feb 2020 Parting with CEO Tidjane Thiam following a spy scandal may repair damage to the Swiss bank’s credibility with customers and regulators. But Chairman Urs Rohner recruited him and has lost investors’ confidence. He’ll struggle to make a credible case for serving out his term, too.
HSBC CEO limbo has a thin silver lining 6 Feb 2020 The $150 bln bank may unveil a big strategic overhaul before naming its permanent boss. That’s messy but there’s a crumb of comfort. Interim head Noel Quinn is effectively auditioning for the job and has an incentive to show he can quickly deliver much-needed cost cuts.
Dealmaker exit reflects SoftBank’s humbler vision 5 Feb 2020 The investor behind the world's largest tech fund has lost U.S. partner Michael Ronen. Without big Gulf backers, its second Vision Fund may mostly manage the Japanese group’s money. CEO Masayoshi Son will focus more on wringing cash from existing investments than making new ones.
China fortune hard to read in Luckin Coffee beans 5 Feb 2020 Short-seller Muddy Waters targeted the $9 bln Starbucks wannabe, briefly stinging the shares. Erstwhile China bear Citron is defending the unprofitable company. Luckin has focused U.S. exuberance, and suspicion, over mainland consumer tech. The verdict remains oddly optimistic.
WeWork needs more than a new adult in the room 3 Feb 2020 Bringing in real-estate veteran Sandeep Mathrani as CEO is just one step in turning around the cash-guzzling shared-office-space firm. Ending past excesses, focusing on bigger clients and negotiating better deals would help show the firm is more than just an exuberant mistake.
Victoria’s Secret deal has more demons than angels 29 Jan 2020 Parent company L Brands may be the next retailer to try to save itself with deal magic by flogging its floundering lingerie brand. Gap just nixed spinoff plans while J.Crew is angling to IPO Madewell. Retailers hoping to be saved by shuffling the shelves will be sadly mistaken.
New Renault boss faces a vertiginous uphill start 28 Jan 2020 The French automaker said Luca de Meo will be its CEO from July. The Italian helped revive Fiat under late boss Marchionne and is credited with fixing Volkswagen-owned Seat. Renault’s grim profit margins and a dilapidated alliance with Nissan present stiff challenges.
Atlantia charts tentative path to road truce 24 Jan 2020 The $19 bln infrastructure group’s new boss wants outsiders to invest into its units. These include embattled motorway operator ASPI, which risks losing a rich road concession after a bridge collapse. Opening ASPI’s capital to state investors offers a way out of the crisis.