Letters to shareholders: a guide for the busy CEO 5 Apr 2019 Leaders like JPMorgan CEO Jamie Dimon are enthusiastic recent adopters of the form mastered by Berkshire Hathaway’s Warren Buffett. But penning sweeping views of what ails the world and the dangers of short-termism takes time. Breakingviews offers a template for corporate chiefs.
Apple tea leaves suggest worrying shift on M&A 4 Apr 2019 The $920 bln firm has reduced stock buybacks, its merger specialist now reports to CEO Tim Cook, and its services push needs more oomph. That all suggests bigger deals are coming. Yet one Apple virtue has been avoiding large takeovers that distract from making compelling gadgets.
Super leaders don’t need supervoting shares 3 Apr 2019 Lyft is one of many growth companies with dual-class stock that entrenches its creators. But Steve Jobs dominated Apple without such wheezes. Elon Musk’s survival at Tesla isn’t just down to governance quirks. And Uber seems better off freed from the control of its architect.
UK army contractor’s next target lies overseas 3 Apr 2019 Submarine-fixer Babcock has hired Ruth Cairnie as its new chair. She inherits a moribund share price and a firm weighted to UK contracts that may wither if the opposition Labour party gains power. Further hiking overseas revenues is the first thing to push for.
Larry Fink keeps succession options wide open 2 Apr 2019 BlackRock is empowering regional managers and tapping a new executive to accelerate its push into private equity. Chief Larry Fink hopes the shakeup will reignite growth after a difficult year. They also leave him with a wealth of choices over who might one day take up his role.
Vincent Bolloré eyes honourable surrender in Italy 29 Mar 2019 Vivendi, controlled by the French tycoon, is withdrawing its plan to throw five directors appointed by Elliott off the board of Telecom Italia. The move spares Bolloré a messy defeat, but still leaves him stuck with rival Paul Singer. State investor CDP could act as a peacemaker.
Wells Fargo’s fall guy finally falls 28 Mar 2019 Tim Sloan’s long history as an insider at the scandal-prone U.S. bank tainted his tenure as chief executive. Yet he dealt effectively with much of Wells Fargo’s historic mess. The worrying thing is that despite Sloan’s obvious challenges, the board isn’t ready with a successor.
Shareholders suffer in EssilorLuxottica civil war 28 Mar 2019 Chairman and top shareholder Leonardo Del Vecchio is taking his conflict with the eyewear giant’s management to an arbitration court. The open warfare will slow merger integration at the 41 billion euro company. Investors are already counting the cost of infighting.
Staley puts neck on the line in Barclays reshuffle 27 Mar 2019 A shake-up of the investment bank will see its three main chiefs report directly to CEO Jes Staley. The ploy could thwart pressure by investor Edward Bramson to scale back the unit. But the big boss is putting his own job on the line with a pledge to improve its mediocre returns.
Ashley’s retail foray more desperate than inspired 27 Mar 2019 Sports Direct, controlled by Mike Ashley, may pay 61 mln pounds for struggling high street chain Debenhams. But taking on its heavy debt and leases, or restructuring them later, would be tricky. Ashley’s best bet may be to agitate for a higher payoff for his 30 percent stake.
Deutsche Bank bonus pay is excessive and ill-timed 22 Mar 2019 The German lender has nearly doubled management pay to 56 million euros due to higher variable pay. The group bonus pool shrank but is more than six times 2018 profit. If unions were irked by job cuts that a proposed merger with Commerzbank would bring, this will incense them.
AB InBev shareholders get more smoke, less 3G 20 Mar 2019 The brewer nominated former Altria CEO Martin Barrington as chairman. Though he’s not linked to the Brazilian investment firm that jointly controls the $143 bln company, the Marlboro maker is a shareholder. Investors who want a more radical shake-up have an opportunity to say no.
Citic and CLSA will survive boss departure 20 Mar 2019 The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.
Newell needs a breakup more than a CEO 15 Mar 2019 Boss Michael Polk is retiring after an eight-year orgy of wheeling and dealing. His 2016 Jarden purchase incinerated $10 bln of shareholder value and saddled the group with debt. He has stepped up asset sales under pressure from Carl Icahn, but a full breakup would make more sense.
Facebook departure is a wake-up call for investors 15 Mar 2019 Top product boss Chris Cox is leaving after Mark Zuckerberg outlined a new direction. It’s hard to overstate how instrumental Cox has been in the development of the $470 bln Facebook. It's one more sign the business could change dramatically - with consequences for valuation.
Volkswagen CEO’s Nazi pun constitutes peak gaffe 15 Mar 2019 Herbert Diess apologised for evoking a Third Reich slogan via the pun “EBIT macht frei”. Given the gravity of the subject and VW’s dark history, it’s hard to imagine a bigger self-own. In a competitive field of foot-in-mouth bosses, Diess has effortlessly claimed pole position.
Shell CEO’s bonus problem less size than length 14 Mar 2019 Ben van Beurden’s 20 million euro pay for 2018 is more than double the previous year. Given Shell’s share performance over the last three years, a bumper payout is logical. Yet holding shares for just three years would allow him to cash out before any climate crunch hits Big Oil.
Carlos Slim has upper hand in Spain property fight 14 Mar 2019 Hedge fund Polygon reckons Realia, controlled by the Mexican tycoon, uses lowball land valuations and raised capital it doesn’t need. The 800 mln euro company’s response is unconvincing. Yet unless regulators force it to change, Slim could increase his stake at a lowball price.
Standard Life Aberdeen board rejig is just a start 13 Mar 2019 The embattled fund manager named Keith Skeoch as sole boss, ending its controversial co-CEO structure. But Martin Gilbert stays on as senior executive and vice chairman. With its 552 bln pound asset base still shrinking and the dividend insecure, governance remains suboptimal.
Outside eyes can quell EssilorLuxottica board row 13 Mar 2019 Top shareholder Leonardo Del Vecchio wants protégé Francesco Milleri to run the eyeglasses juggernaut. But he lacks both international experience and director support. A comprehensive, global search would turn up a better boss for the $50 bln group as it faces new challenges.