Carrefour tin ear puts fat cats in Macron’s sights 18 Jun 2018 The supermarket’s ex-boss forwent part of a 13 mln euro payoff after pressure from the French government. It shows that the ex-banker President Emmanuel Macron is no slave to laissez-faire economics. His move to liberalise firing rules makes corporate excess a legitimate target.
Renault M&A race sidelines governance niceties 15 Jun 2018 Investors backed CEO Carlos Ghosn’s pay despite the French state’s opposition. His 7.4 million euro package was greased with soft targets. Yet the high proportion of shares at least gives Ghosn an extra incentive to push for a value-boosting merger with Japan’s Nissan.
Plumber ruling leaves blockage in UK gig economy 13 Jun 2018 A decision by the country’s Supreme Court ruled that a self-employed contractor is entitled to workers’ rights is ominous for companies like Uber which depend on casual labour. But it offers little new guidance for dealing with technology’s impact on work practices.
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.
Investors shove three potatoes up Ford’s exhaust 10 May 2018 A majority of independent shareholders rejected the automaker’s long-term pay plan, want to scrap supervoting stock and reduced support for at least one director below 80 pct. It’s a significant rebuke, but the Ford family’s outsized votes insulate management from dissent.
Dodd-Frank sheds surprising light on Wall St pay 2 Apr 2018 The widest income disparities in finance don’t involve the biggest CEO paychecks. And median comp can say more about geography and sector than inequality. The law’s pay-ratio disclosures offer useful data for investors and job seekers, and could revive a debate about offshoring.
UK gender pay gap requires “just do it” approach 28 Mar 2018 Disclosures have revealed discrepancies, especially in finance, which will not close on their own. The state can help. Fining employers which fail to make progress over several years would align the interests of women and investors. CEOs would have to match words with actions.
Elon Musk pay deal is crazy enough to get the nod 20 Mar 2018 The Tesla boss could collect nearly $60 bln over 10 years. That’s excessive and surely unimportant for motivation. Yet it’s built on PR-stunt targets involving sales, EBITDA and market cap exploding 10-fold or more. For investors voting on the plan, it’s like playing the lottery.
Wells Fargo hands CEO perfect financial incentive 15 Mar 2018 Tim Sloan’s 36 pct comp boost may look excessive for a problem bank under Fed censure. But he’s the lowest-paid boss of a major U.S. lender, and his bonus is entirely in shares - so he’ll lose it all if he’s ousted. If his turnaround succeeds, though, he’ll deserve every penny.
Volkswagen investors are stuck in the past 13 Mar 2018 The carmaker’s shares are priced at a 20 pct discount to German rivals Daimler and BMW. That’s despite fast growth, a rising operating margin and scale that gives it an edge in electric vehicles. Cost cuts and a full year without unexpected diesel provisions would help close the gap.
ING pay fiasco confirms banking’s utility status 13 Mar 2018 The Dutch lender has withdrawn a 50 percent salary hike for its CEO following a public outcry. Political opprobrium stems from past state support for banks. The inevitable consequence is that bosses become glorified civil servants. Directors and shareholders take a back seat.
Disney CEO’s pay is a deal too far 8 Mar 2018 The media group’s shareholders voted against plans for Bob Iger’s pay. He made $36 mln for 2017 and will benefit if a $52 bln purchase of parts of Fox goes through. Iger’s job is to make deals work, not just make them, and the board’s is to ensure his presence isn’t “imperative.”
Kardashian slap shows hole in Snap’s accounting 22 Feb 2018 Celebrity sibling Kylie Jenner wiped over $1.5 bln from the disappearing-message app’s wobbly value after she questioned its usefulness. Influential fans attract users – and repel them if they publicly flee. Such assets don’t show on the balance sheet. Maybe they should.
Wall Street turns CEO pay into snowboard cross 16 Feb 2018 Goldman paid Lloyd Blankfein $24 mln for 2017, a 9 pct boost amid a so-so financial showing. That’s less than Morgan Stanley’s James Gorman despite an overall better performance. Mike Corbat’s whopping 48 pct jump at Citi still leaves him off the pace – but they’re bunching up.
Ryanair buyback can only cushion so much turbulence 5 Feb 2018 The no-frills airline boosted earnings in the three months to December but faces a squeeze from pilot salary demands and still-low fares. A 750 mln euro share buyback will smooth the bumps for investors. But it cannot offset the transition to a lower-growth, higher-cost future.
Bad things may come in threes for stock investors 2 Feb 2018 U.S. wage growth and 10-year Treasury yields are both nearing 3 percent. The former may hasten rate rises and erode companies’ profits. The latter will boost borrowing costs and make it less attractive to hold stocks. That could spook an equity market priced for near perfection.
Hadas: Tesla’s $60 billion mistake on pay 31 Jan 2018 The loss-making electric-car maker could hand founding genius Elon Musk that much if all goes miraculously well. The hero-worship approach to compensation made some sense when Tesla was more concept than manufacturer. What it needs now is more boring and bureaucratic competence.
Tesla board drives CEO pay into electric dreamland 23 Jan 2018 Elon Musk will make nearly $60 bln if he hits new targets by 2028, on top of the $100 bln-plus value boost for his existing stake. Musk is critical to Tesla, and he blew through his last goals years early. The new ones are even more ambitious. But incentives can lose meaning.
Wall Street banks need yet another earnings metric 12 Jan 2018 JPMorgan, Wells Fargo and peers already deluge investors with performance measures. But tax cuts will make it easier for them to hit returns targets – and for executives to claim bonuses despite mediocre growth. Pre-tax returns on equity would be a helpful alternative yardstick.
Walmart pay hike is less than largesse 11 Jan 2018 The $300 bln U.S. supermarket chain is raising hourly wages by $300 mln. That’s just a sliver of what it could save through tax cuts, but that may not be the biggest driver anyway. In fact, with super-low unemployment, it’s a wonder Walmart can get away with so little.