UK leads Europe… in lack of boss pay restraint 25 Aug 2023 British CEOs at top listed groups got a 16% pay hike last year. Yet bosses’ salaries stagnated in France and fell 8% in Germany. Different growth paces partly explain the gap. But UK workers will struggle to take seriously policymakers’ calls for wage restraint to curb inflation.
Mastercard’s African fintech bet is VC, but better 15 Aug 2023 Mastercard is investing in telecoms company MTN Group’s $5.2 bln mobile payments unit after backing an Airtel Africa-owned rival. The price is higher than past deals. But historical underinvestment in African fintech helps, as does its ability to spread money around.
PayPal would slot well in a different wallet 15 Aug 2023 As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.
Acquisitive CEO’s pay push belongs in scrap heap 7 Aug 2023 After beating back unhappy shareholders to complete a $7 bln junkyard deal, RB Global boss Ann Fandozzi sought to accelerate her equity grants. When the board said no, she apparently quit. It’s a welcome case of directors swinging the wrecking ball on runaway CEO rewards.
Central banks’ calls for pay restraint ring hollow 29 Jun 2023 Western central bankers want workers to ask for lower raises unless firms cut their margins to compensate staff. With salaries growing less than inflation, that’s a harsh demand. Past rate rises will in time cool labour markets. Officials need to talk less and wait longer.
Private equity risks gorging on its secret sauce 14 Jun 2023 Public-market investors prefer steady management fees over lumpy buyout profit. As a result, KKR and others funnel more so-called carry to employees instead. Peers Blackstone and Carlyle could recalibrate similarly, but taking a bigger cut also might irritate dealmakers.
Capital Calls: UBS, Brookfield 9 Jun 2023 Concise views on global finance: The Swiss bank’s state loss guarantee is structured like an insurance policy against an unlikely event; the Canadian investment group teams up with UAE and Saudi investors to beat CVC’s consortium and win payments provider Network International.
Capital Calls: Unilever, Shopify 4 May 2023 Concise views on global finance: The consumer goods company may need to backtrack on a pay package for its incoming CEO to quell a shareholder revolt; shares in Canadian e-commerce firm Shopify shot up over 20% after it said it was selling its logistics business to Flexport.
Capital Calls: Allianz’s fintech sale 19 Apr 2023 Concise views on global finance: The $100 bln insurer may offload its 5% stake in German digital banking startup N26, a decision that would make all kinds of sense.
European pay anger is more costly than inflation 3 Apr 2023 Workers are striking and demanding salary hikes to make up for higher living costs. Governments and central banks are warning about the risks of a consumer price spiral, but after three years of real wage stagnation, further restraint will inflict political and economic pain.
Capital Calls: Bank of England, Wonder drugs 23 Mar 2023 Concise views on global finance: The UK central bank has joined peers in raising rates, but there’s not much room to keep hiking. Meanwhile, a drug that might help smokers’ lung is could be good for makers Regeneron and Sanofi, but even better for society.
Bad news salvo gives Bank of Japan some cover 16 Mar 2023 The collapse of U.S. lender Silicon Valley Bank knocked down sovereign bond yields. Consumption remains soft, and while Japan Inc is hiking wages by 3% on average, that’s well below inflation. There’s nothing to cheer, but it takes pressure off the BOJ to adjust rates.
China’s equity watchdog gets backhanded promotion 8 Mar 2023 Beijing is elevating the China Securities Regulatory Commission in the bureaucratic hierarchy. It ought to be good news for an agency whose authority has been diluted in recent years. Yet the change sets staff up for a pay cut. More power with less money is a bad combination.
Capital Calls: TD Bank’s $13 bln cliffhanger 2 Mar 2023 Concise views on global finance: The Canadian bank’s acquisition of U.S. peer First Horizon will be delayed beyond its May 27 drop-dead date, but there are reasons to think it will still get done.
UK bailout has energy bosses walking on eggshells 13 Feb 2023 Power suppliers like Centrica took billions of pounds of government cash to help customers pay high bills. That leaves them open to charges they pocketed gains and handed losses to taxpayers. For an industry intertwined with the state, pay restraint is vital to self-preservation.
Capital Calls: Prices down, jobs saved? 12 Jan 2023 Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.
UniCredit CEO Orcel has leverage in pay debate 6 Dec 2022 The veteran dealmaker has hit his bank’s targets this year and narrowed a valuation gap to peers. Andrea Orcel may therefore deserve his maximum annual bonus. A pay hike beyond that is less obviously required, but legitimate fears he may jump ship may tip the board to offer one.
Private equity’s pay boom may have peaked 29 Nov 2022 The average European buyout partner has 20 mln euros of outstanding carried interest in their current fund, reckons Heidrick & Struggles, up a quarter from 2021. Junior wages soared. Yet a possible fundraising slowdown and layoffs elsewhere in finance will slow the gravy train.
Gig worker rule comes at bad time for gig economy 11 Oct 2022 President Biden’s administration wants to turn more independent contractors into employees. The move may squeeze firms like Uber and DoorDash that rely on casual labor. Workers are already scarce and inflation is squeezing consumers. Higher costs threaten long-awaited earnings.
Bonus cap scrap would be dubious Brexit dividend 15 Sep 2022 UK finance minister Kwasi Kwarteng may dump rules curbing banker payouts to twice their salary. Yet it would only marginally boost the City’s competitiveness and may make more meaningful tax changes less likely. The benefits of tearing up EU regulations look increasingly elusive.