Chirac showed safe way to mess up an EU referendum 26 Sep 2019 The former French president, who has died aged 86, famously asked voters to back the European constitution and lost. UK leader David Cameron did something similar in 2016. The difference between the two is that the answer to Jacques Chirac’s question was easier to fudge.
SoftBank risks chasing its losses with WeWork 26 Sep 2019 CEO Masayoshi Son may pour an extra $1 bln into the cash-burning shared-office firm. It’s tempting to imagine this means WeWork’s business just needs more cash and patience. The reality is that SoftBank has more to lose from walking away than a regular investor might.
New Molson Coors boss mounts Big Beer’s laggard 26 Sep 2019 The $12 bln brewer’s valuation trails industry peers. A renewed emphasis on marketing might make the difference but could mean less cash for controlling family shareholders. Incoming CEO Gavin Hattersley’s prior record, though, may leave a thirst for higher returns unquenched.
German ECB exit could make Lagarde’s life harder 26 Sep 2019 Sabine Lautenschlaeger resigned from the European Central Bank’s board. With no reason given, it is all too easy to blame the premature departure on discontent over recent monetary easing. Incoming boss Christine Lagarde’s room for manoeuvre may be shrinking before she starts.
Thyssenkrupp CEO exit will help its elevator pitch 25 Sep 2019 Guido Kerkhoff is on his way out at the German industrial conglomerate after 14 months, a 40% share price drop and various U-turns on strategy. His interim replacement backs a plan to sell the lifts business. Just as well since this offers the best chance of boosting valuation.
Volkswagen’s damaged CEO remains roadworthy 24 Sep 2019 Herbert Diess has presided over a share price fall, made a Nazi joke, and may now face a criminal charge of market manipulation. Assuming he survives the latter, his recent truck IPO and focus on electric vehicles are right. Oddly, the $85 bln group would be weaker without him.
Credit Suisse spy caper explodes Swiss discretion 24 Sep 2019 The Swiss bank’s former wealth management boss Iqbal Khan called police after private detectives pursued him around Zurich. Lenders have legitimate fears about rivals poaching staff. But snooping on bankers suggests paranoia, while getting caught in the act is just incompetent.
BHP’s pay plan forges dual path to sustainability 23 Sep 2019 The $122 bln miner wants to make more of its CEO's bonus dependent on emissions and other yet-to-be-provided climate goals. As importantly, it is trimming incentives and making bosses hold shares for longer. In an industry struggling to regain investor trust, both are important.
Cox: Imagine Carlos Ghosn as a human rights martyr 20 Sep 2019 The wealthy former Nissan-Renault boss who held a birthday bash at Versailles isn’t the first person to come to mind. But that’s the argument his lawyers are making in a renewed pitch to acquit him of criminal charges in Japan. As unlikely as it sounds, the case has some merit.
Ryanair boss’s bonus gets an apt level of anger 19 Sep 2019 Almost half the budget airline’s shareholders voted against a package that could see CEO Michael O’Leary get 99 mln euros over five years. They stand to gain if he hits his targets. But given it looks relatively easy to do so they are right that it’s only barely acceptable.
Siemens’ smooth succession plan may stall breakup 19 Sep 2019 The $90 bln industrial behemoth has promoted COO Roland Busch to deputy chief executive, putting him in prime position to replace CEO Joe Kaeser in 2021. The perfectly-crafted plan offers clarity and continuity. An insider may however, be slower to simplify the sprawling company.
Revolving door makes EU bank cop look hapless 18 Sep 2019 The main lobbyist for European banks named a top regulator as its new boss. Shuttling from government to industry is not unusual but should involve a cooling off period. Already criticised for being insufficiently tough, the hire will compound the watchdog’s image problem.
Ultra-low rates raise bar for new UBS wealth tsar 13 Sep 2019 Star private banker Iqbal Khan will jointly lead the Swiss bank’s $2.5 trln global wealth business. Under his watch, Credit Suisse’s smaller international wealth division doubled its pre-tax income. With interest rates at record lows, replicating that performance won’t be easy.
Telecom Italia chair takes one for the team 12 Sep 2019 Fulvio Conti says he may resign from the embattled group. While not himself the problem, he had become ill-suited to mediate between feuding investors Vivendi and Elliott. A new chair could help the $12 bln group move beyond its boardroom troubles and focus on its strategic ones.
Gun makers may get their Trump bump, with a sting 12 Sep 2019 More stringent firearms regulations look closer than they have in decades as the U.S. president considers enhanced background checks. Companies like Walmart have given him cover. Long-term, it may not help the ironmongers, but their stocks always spike when legislation looms.
New Nordea boss faces déjà vu cost-cutting test 5 Sep 2019 The $25 billion Nordic bank is changing gears, replacing its CEO earlier than expected with Frank Vang-Jensen, who successfully slashed expenses at Swedish rival Handelsbanken. To meet its new financial targets and keep activist Cevian happy, Nordea will need the same treatment.
Nissan CEO has overstayed a lukewarm welcome 5 Sep 2019 Hiroto Saikawa and others may have padded their pay. The figures appear small compared to allegations levied against Carlos Ghosn, but it hardly matters. Saikawa has not rebuilt credibility or fixed performance at the $25 bln carmaker. Investors have no cause to remain patient.
Opportunity costs pile up for Samsung 29 Aug 2019 The trial of the electronic giant’s de-facto boss, Jay Y. Lee, will drag on after South Korea’s top court overturned a softer sentence. It helps President Moon, who has little to show for his anti-corruption fight. For Samsung, it increases doubt over its ability to be nimble.
VW still grapples with Piech’s mixed legacy 27 Aug 2019 The former CEO and chairman, who died Sunday, turned a flailing carmaker into the global leader, and built heft in an industry that requires scale. Yet VW’s profitability is far from top-class, and the giant company is still recovering from the legacy of dodgy family governance.
India gets stuck in anti-corruption crossfire 23 Aug 2019 After tycoons, authorities are turning to politicians, arresting opposition veteran and former finance minister P. Chidambaram. The move, months after Narendra Modi's big win, fuels fears of factionalism; it also raises concerns about the unwanted consequences of a cleanup.