Mark Zuckerberg listening tour could start at home 31 May 2017 Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.
Activist adds teeth to Ericsson’s turnaround 31 May 2017 Cevian has taken a 5 pct stake in the Swedish telecoms-kit maker. Boss Borje Ekholm’s strategy of slimming down and boosting margins is sound, but lacks credibility as he was on the board when things turned sour. It can’t hurt to have a big investor breathing down his neck.
Samsung gambles on an heirless future 31 May 2017 The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.
Market forces fail working women in Asian hubs 25 May 2017 Hong Kong and Singapore are depressing places for women aspiring to boardroom roles. There has been glacial progress in promoting the gender, despite the proven business benefits and an ample talent pool in both cities. Authorities should embrace quotas to fix the imbalance.
CEO ejection hardly gets Ford back in the race 22 May 2017 The $43 bln carmaker lags domestic rivals on many fronts, including self-driving and electric vehicles. The stock's 36 pct decline under Mark Fields was the most visible manifestation of it flaws. But naming a 62-year-old furniture executive to replace him is a puzzling remedy.
Ford shareholders in confused tizzy over strategy 12 May 2017 A 37 pct drop in the share price since Mark Fields became CEO should have owners asking questions, even if the carmaker’s valuation raced ahead of rivals who are now catching up. Railing against the family’s supervoting stock feels good but won't fix Ford's immediate issues.
It isn’t easy being Barclays’ Jes Staley 12 May 2017 The UK bank chief is yet again in the spotlight after falling for an email spoof. After recent controversies involving whistleblowers and the blurring of work and outside interests, he is no doubt walking on eggshells. Breakingviews imagines a typical day.
France makes life too easy for pushy bosses 12 May 2017 Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.
Whole Foods board changes whet activists’ appetite 10 May 2017 The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.
Buffett’s praise of Jack Bogle sounds self-serving 7 May 2017 At his annual Omaha gala, the Oracle gave a well-deserved shout-out to Vanguard's founder. With big slugs of Berkshire Hathaway's portfolio struggling, including Wells Fargo and IBM, returns are converging with the S&P 500. That makes Buffett's strategy look more like Bogle's.
Cost cuts won’t save Pearson or its CEO 5 May 2017 The UK education publisher is planning 300 mln pounds of savings by 2020, with the troubled North America business taking some of the pain. Markets aren’t giving embattled boss John Fallon much credit for the plans, and falling revenue could cancel out the gain to shareholders.
M&S opts for safety over real shakeup 5 May 2017 The UK high street stalwart named Archie Norman as its chairman, days after finding a new boss for its clothing unit. His retail nous will bolster M&S’ turnaround plans. Yet the hire is the latest in a series of safe choices that underestimate the changes sweeping retail.
VW-Fiat Chrysler merger too tempting by half 4 May 2017 Welding together the German and the Italian-U.S. carmakers might unleash cost savings of more than $38 bln. As the auto industry gets more challenging, and Fiat Chrysler boss Sergio Marchionne more eager to sell, that prize may trump memories of previous car deals gone wrong.
ITV boss picks prime time to duck out 3 May 2017 Adam Crozier is leaving the UK’s largest free-to-air TV firm after seven years as CEO. His strategy of building up ITV’s production arm has been vindicated, but the vulnerability of ad revenue and the rise of digital giants like Netflix and Amazon will vex his successor.
Barclays chief learns silence is golden 2 May 2017 Jes Staley vouched for his brother-in-law in a spat with buyout group KKR, a client of the bank. Helping out friends is a good quality in a human being, and a boss. A CEO’s job, though, is to keep a clear line between life and work. Investors have reason to expect it.
Cheap boss is a luxury Bovis can’t afford 2 May 2017 The troubled UK homebuilder's investors approved a hefty pay package for its new boss. He could earn over 100 times the average UK construction worker, up from 76 times for his predecessor. A politically incorrect salary is the price Bovis pays for a much-needed turnaround.
AllianceBernstein shakeup sends active sell signal 1 May 2017 The firing of CEO Peter Kraus is the latest wakeup call for Wall Street stock pickers. Diversification efforts at the AXA-controlled firm failed to offset a long decline in its once-potent equities business. The upheaval suggests other active managers also have nowhere to hide.
Arconic takes battle of letters to Elliott 24 Apr 2017 The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.
Markets are wary of new blot on Japan Inc’s image 21 Apr 2017 Fujifilm has discovered dodgy accounting in its Kiwi unit. It is merely a $200 mln flub. But investor anxiety is understandable. What looked like a manageable accounting problem at Toshiba spiralled out of control. The photocopier-maker's mediocre governance is unhelpful too.
Belated O’Reilly exit shows Fox still on back foot 19 Apr 2017 The U.S. cable channel's star anchor is out after a catalog of sexual-harassment allegations prompted advertiser boycotts and protests. The channel's chief architect, Roger Ailes, was booted amid a similar scandal nine months ago. Rupert Murdoch's empire is changing only slowly.