Petrobras CEO exit weakens Brazil’s adult oversight 1 Jun 2018 Pedro Parente had been a successful boss of the state oil giant until it cut diesel prices to placate striking truckers. Now his tenure looks more like a blip than the end of traditional government meddling. Petrobras’ share-price plunge is a warning about how the economy is run.
Fiat Chrysler revs up for new hair-raising ride 31 May 2018 CEO Sergio Marchionne is about to unveil the $32 bln carmaker's next five-year plan after hitting most previous targets. He has to show how the company can fix its stalling Europe unit while catching up on electric and self-driving vehicles, all without him at the wheel.
Greyhound owner’s turnaround faces lengthy delay 31 May 2018 Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.
Anbang appeal sends false signal 31 May 2018 The insurer’s ex-chairman wants to overturn a $10 bln fraud conviction. With another boss just exonerated, it looks as if China’s embattled tycoons are mounting a legal fightback. But the two cases are very distinct and Anbang’s sensitivity makes success highly unlikely.
Exxon shareholders dutifully take back seat 30 May 2018 One year after rebuking management over climate change, owners of the $330 bln oil giant turned quiescent. They toed the company line on pay, lobbying and splitting the chairman and CEO roles. If returns remain subpar, investors will have no one but themselves to blame.
Sorrell’s new shell tests value of old contacts 30 May 2018 Six weeks after leaving WPP, Martin Sorrell is putting $53 mln into a vehicle to buy up small ad and technology groups. Success will depend on his address book securing access to senior clients. It will also show whether the 73-year-old really merited his massive former salary.
Fixing Deutsche’s retail bank is the easier part 30 May 2018 New boss Christian Sewing wants the German lender’s domestic unit to earn an economic return by 2021. That’s doable as long as Postbank delivers promised savings of 900 mln euros a year and higher interest rates help. It’s less daunting than turning around the investment bank.
Deutsche Bank de-flabbing cuts to the bone 24 May 2018 The German lender plans to cut more than 7,000 jobs by 2019, including a one-quarter reduction in equities trading headcount. It’s a bold move by boss Christian Sewing to get costs to 22 billion euros. It could also end up damaging Deutsche’s more profitable investment banking businesses.
StanChart dream reveals Barclays’ limited options 23 May 2018 The UK bank has considered merging with rivals including Standard Chartered, according to the Financial Times. Combining the two makes little financial sense. But it shows Barclays boss Jes Staley has few obvious ways to boost returns and appease activist Edward Bramson.
WPP chairman has too many jobs 23 May 2018 An advisory group says the ad group’s shareholders should oust Roberto Quarta over his handling of CEO Martin Sorrell’s departure. That would be a mistake: his options were limited. But also chairing medical-device maker Smith & Nephew is a stretch. He should focus on one task.
Latest M&S overhaul lacks a clear price tag 23 May 2018 The UK retailer will close 100 stores in an attempt to reverse falling like-for-like food and clothing sales. The revamp, sped up by new Chairman Archie Norman, set the group back half a billion pounds last year. With few details about future costs, investors can shop elsewhere.
Oil index deal reinvents an old buyout trick 23 May 2018 Chinese-backed ZZ Capital International has struggled to close a roughly $800 mln purchase of U.S. data provider Alerian. Now two of its top dealmakers are leaving, and resurrecting the takeover at their new shop. That puts a fresh spin on pass-the-parcel deals by private equity.
NYSE outgoing boss prepares to eat own cooking 22 May 2018 Tom Farley is leaving the exchange to run a blank-check company backed by hedge-fund manager Dan Loeb that will invest in fintech. While at NYSE, Farley helped make it easier for so-called SPACs to list. He may find hosting these shell companies beats running and filling them.
Deutsche fightback begins with legacy asset reveal 21 May 2018 The German lender’s balance sheet includes about 50 billion euros of unprofitable trades which drag down its investment bank’s return on equity. Reporting them separately would attract attention to past mistakes – but also offer a clearer picture of the bank’s recovery.
Baidu gets $9 bln warning to stay the course 21 May 2018 The surprise exit of COO Lu Qi sparked a big drop in the Chinese search engine's shares. He helped Baidu focus on search and AI, lifting the company's market value since his arrival from Microsoft in 2017. Boss Robin Li has been sent a strong message about what investors want.
Les Moonves is starting to endanger his record 18 May 2018 The CBS boss has done shareholders proud. Yet wading into what may be a long legal fight with controlling owner Shari Redstone serves no one. It also suggests a touch of hubris. The overpaid Moonves has it covered, though: If he’s fired, he could pocket more than $100 mln.
CBS, Shari Redstone litigate selves off M&A rails 17 May 2018 A judge denied the $20 bln media firm’s restraining-order request against its controlling shareholder. But CBS may be able to argue Redstone is breaching her fiduciary duty. It almost ensures a long legal drama that’ll shunt deals with Viacom or other companies onto the sidings.
Wells Fargo’s new cloud has bigger silver lining 17 May 2018 Some employees at its business-banking unit altered client documents. It’s another cultural black mark on the scandal-plagued $262 bln lender. But its handling of the incident suggests CEO Tim Sloan’s overhaul of risk management and procedures is starting to make a difference.
Facebook has a boardroom problem – but what? 17 May 2018 Two proxy advisers offer investors different reasons to withhold votes from mostly different directors – ISS includes Mark Zuckerberg. The CEO has control, so any such move would only be a protest. Through the confusion, though, shines the need to puncture Zuckerberg’s bubble.
Royal Mail puts absurd twist on golden handshake 17 May 2018 The UK postal service’s 5.8 mln pound payment to new CEO Rico Back is a familiar way to get a chosen candidate to jump ship. Yet Back already works for a Royal Mail subsidiary. It adds a layer of farce to so-called “buyouts” that have hit investor pockets and board reputations.