Renault-Nissan saga will eventually favour France 21 Jan 2019 Governance changes on the Japanese side may reduce its French partner’s board power. Yet Renault’s 43 pct stake is its trump card, and Nissan’s moves to skirt it are likely to fail. It’ll take time, but Paris should one day get what it wants: closer integration and maybe a deal.
Context makes Santander’s Orcel fail even worse 18 Jan 2019 The Spanish bank expected UBS to honour a portion of its would-be CEO’s deferred pay. But recent executive moves at Deutsche Bank and Barclays saw new hires compensated in full. Andrea Orcel’s acceptance of a cut was a concession – making it all the odder Santander backed out.
Telecom Italia’s new boss needs some quick wins 18 Jan 2019 The Italian telco’s shares have dived after a profit warning. New CEO Luigi Gubitosi can stop the rot by listing its fixed network, but that path is slow and uncertain. A quicker route to credibility lies in selling stakes in choice assets like Inwit and the Brazil business.
JPMorgan bankers win Wall Street pay game 17 Jan 2019 Jamie Dimon’s firm is the only one to increase average compensation for investment bankers and traders in 2018, boosting it more than revenue rose. Jefferies still pays the most, but it’s less generous than it was. Goldman and Morgan Stanley have the mix just right.
Next Premier League CEO will start one goal behind 17 Jan 2019 A second candidate refused English soccer’s top job. It’s a tough role since Sky and BT are loath to keep bankrolling the sport, Amazon is sitting on the sidelines and rowdy soccer-club chairmen have to be tackled. Whoever takes the job will know the league’s glory days are past.
Reckitt CEO leaves successor with big headaches 16 Jan 2019 Rakesh Kapoor will leave the Nurofen maker after eight years. The stock has soared in his tenure, but the exit comes after a series of mishaps, weak sales growth, and a controversial acquisition. The successor will also have to decide whether to proceed with a complex breakup.
Orcel U-turn leaves Santander with reddest face 15 Jan 2019 The Spanish bank backed out of appointing Andrea Orcel as chief executive after balking at the former UBS executive’s pay package. The Italian is left without a job, and the Swiss lender has embarrassed its client. Santander Chairman Ana Botin, though, looks rash and naive.
JAB departure is sign to halt deal binge 15 Jan 2019 Chairman Bart Becht unexpectedly retired from the Krispy Kreme owner after swallowing several chunky acquisitions. Rising debt and the declining value of investments like Coty raise questions about JAB’s model. The remaining partners need a break before returning to the table.
BlackRock is too passive on diversity goal 10 Jan 2019 The latest top-level promotion suggests a Mark or a Rob will succeed boss Larry Fink. The $6 trln asset manager aims to have women in 30 pct of its most senior jobs by 2020. For now, it’s falling far short of that. It’s a case where good stewardship best starts at home.
Guest view: Banks need a culture shock 8 Jan 2019 Conduct failures from Wells Fargo to Goldman Sachs to Danske Bank have damaged trust in banking, and can have a serious impact on profitability. Reforming bank culture to avoid scandals requires changing behavior and attitudes. It’s a tough job - one that has to start at the top.
Activist too quick to take an ax to Dollar Tree 7 Jan 2019 Pushy investor Starboard wants control of the $23 bln low-price retailer’s board, and could push for a sale of its Family Dollar chain. Dollar Tree has underperformed peers. But Starboard, which only has 2 pct of the stock, may do better holding tight and waiting for a downturn.
World Bank could be a new stick to beat China 7 Jan 2019 Jim Yong Kim has quit as head of the global lender, and the White House has a big say on his replacement. American officials had already pressured the bank to lend less to China and warned about Beijing’s influence. A hawkish new boss could create a new front in the trade war.
Budget air guru was passenger more than pilot 4 Jan 2019 Herb Kelleher’s Southwest Airlines took the romance out of flying, and undercut the industry’s luxury pricing with cheap, direct flights. Budget travelers owe him thanks, but they owe more to the influence of plunging airplane-manufacturing costs and rising passenger demand.
A graying Facebook will require a different leader 4 Jan 2019 Mark Zuckerberg’s social network is losing the trust of users and regulators because of fake news and privacy worries just as its valuation looks over the hill. Surmounting the crisis will involve a new model. The founder’s priority is finding someone up to the task.
Next ECB boss will matter less than his sidekick 3 Jan 2019 Most of those vying to replace Mario Draghi at the European Central Bank lack his creativity. Others will have more scope to sway debates. Ireland’s freethinking Philip Lane is favourite to be chief economist. He would have outsized influence, especially in the next downturn.
Larry Ellison is anything but a check on Elon Musk 28 Dec 2018 The Oracle founder calls himself a “very close friend” of the Tesla CEO and owns nearly $1 bln of the automaker’s stock. He also shares an imperious style and penchant for outsized pay. Musk’s SEC deal mandated an independent director, but Ellison is unlikely to rein him in.
Boardroom brawls will be child’s play to politics 28 Dec 2018 Starbucks’ founder, hedgie Tom Steyer, Mike Bloomberg and Mark Cuban are mulling U.S. presidential runs. Billionaires selling coffee, data or stocks may not find their skills useful in a bruising political race with 30-some Democratic candidates calling out their immense wealth.
City is even less diverse than RBS makes it look 19 Dec 2018 The UK bank’s hire of a female CFO and potentially a female CEO too is unusual. But 50 FTSE-350 companies have no women on their executive boards at all. With firms often restricting them to non-P&L roles like HR, female CEOs will remain depressingly scarce.
Renault-Nissan: Only merging makes financial sense 19 Dec 2018 The French and Japanese carmakers' lopsided stakes in each other are a poor use of capital. A full-blown marriage could boost their value by about 30 percent. That’s less likely after Carlos Ghosn’s ouster as Nissan chairman; the auto alliance is driving in the wrong direction.
Goldman Sachs will spend 2019 in velvet handcuffs 18 Dec 2018 New boss David Solomon starts the year with a mission to grow, lots of ambition and a crosstown rival that has steadily upped its game. A big deal – say, buying an asset manager – could help Solomon vault ahead of Morgan Stanley. That’s if the 1MDB scandal doesn’t bind his hands.