Corporate Governance

Activist victory at Atos could shake up France SA

28 May 2008

Two hedge funds have won their battle to force the IT services company to focus on shareholder value. The French companies that already feel the pressure of such professional investors should take notice. More companies might even start to accept tough love from shareholders.

What next for Sarin?

28 May 2008

Vodafone s outgoing boss will be in hot demand. After five years leading a successful UKbased global telecom operator, the Indianborn, USeducated executive has many options. Something else mobile, or a move into finance look obvious, but he might just do most good in India.

Exxon split defeat a result of bad packaging

27 May 2008

At today s AGM, the motion to split the chairman and chief executive posts received even fewer votes than last year. That s the result of a good governance idea being misidentified as hostile to investors interests.

Sarin makes timely Vodafone exit

27 May 2008

Two years ago, few would have believed the mobile operator s chief executive would survive to depart under his own steam, and in glory. Sarin s deals shifted Vodafone s growth to emerging markets. His chosen successor is left a fight to keep that momentum going.

M&B makes room at the top for Tchenguiz

19 May 2008

The UK pubs group is inviting the property tycoon, a 26% shareholder, onto the board. That may partly be an attempt to quell criticism of the group s strategy. But at least Tchenguiz, who looks to have lost £200m on M&B so far, will be focused on driving up the share price.

Will Icahn play Sinatra or Clooney?

15 May 2008

Like the heist film Ocean s 11, he is assembling a team of specialists to crack open Yahoo s vaults, pass the treasure to Microsoft and take a slice for themselves. In the Rat Pack version, the thieves get nothing. In the remake, they get the money. It could go either way.

Wall St and City bosses should get no bonus this year

13 May 2008

To drive home the message that foolhardy risktaking doesn t pay, regulators should inflict pain on firms that have relied on de facto state bailouts. No bonuses for CEOs and no dividends for shareholders should do the trick.

RBS’s McKillop should go

13 May 2008

The Scottish bank needs a new chairman to restore credibility after its bruising rights issue. Philip Hampton, the Sainsbury boss, would do the trick. He is financially literate and wouldn t easily be bullied by Fred Goodwin, the RBS CEO whose job is also on the line.

Banker bonus bust evens the score for investors

9 May 2008

City payout growth has outpaced investor gains by 10toone since 2002. It s clear who got the bull market spoils. But if a forecast 40% drop in the bonus pool proves right, and bank shares hold steady, the gap will narrow considerably if only for a while.

Separation of chairman and CEO shouldn’t be a stigma

9 May 2008

Wachovia relieved CEO Ken Thompson of the chairmanship. Because it follows stinging writedowns, this looks like criticism. That may be merited, but it's unfortunate. Investors should support separating the two roles in good times as well as bad.

Bank bosses get annual dose of reality

5 May 2008

CEOs get paid enough, even in bad years, to salve regrets about losses. So, mostly, do their peers. And for analysts, billions are often just numbers. So annual meetings serve a purpose they show bosses people who are truly suffering. Sadly, the impact is probably marginal.

Krumnow’s position at Tui looks untenable

2 May 2008

Dissident shareholders of the German travel group want the chairman to resign. He may be able to hold on in Wednesday s AGM vote, thanks to a cosy board structure. Yet after years of poor returns, and with almost 25% of the votes in open revolt, Krumnow s time looks short.

Citigroup still haunted by black hole

30 Apr 2008

The bank s role in Parmalat s collapse goes to trial on Monday. Proving Citi abetted fraud through securitisation may leave New Jersey jurors befuddled. But Citi s naming of a vehicle that allegedly disguised debt buconero black hole is easy to grasp.

Rockefellers’ Exxon governance clean-up worth supporting

29 Apr 2008

It s ironic the descendants of the man who created Standard Oil are lobbying Exxon to go green. That s exactly the kind of issue a nonexecutive chairman, separate from the CEO, would be in a position to evaluate. Of the four Rockefeller resolutions, this is the one to support.

Putin’s job offer to Prodi was just too crude

29 Apr 2008

Gazprom s offer to the outgoing Italian premier to chair the South Stream pipeline project was another attempt to drive a wedge between EU members. At least it shows that Russia is still taking the rival Nabucco pipeline project seriously. If only Europe did, too…

UK Tories guilty of serious misjudgement

21 Apr 2008

Shadow Chancellor George Osborne decision to endorse the government's bailout of UK banks without even waiting to hear the details was daft. He has handed the government a blank cheque. Bankers will no doubt be grateful, but taxpayers may end up footing the bill.

UBS admits it was out of control

21 Apr 2008

That s effectively the bottom line of the catalogue of errors revealed by the Swiss bank s probe, at the behest of the regulator, into its $37bn of subprime losses. UBS s report reinforces calls for tougher controls not just at UBS but throughout the industry.

Should Fred be shredded?

18 Apr 2008

The RBS boss has lost credibility with his rightsissue Uturn and his overpriced acquisition of ABN Amro. If the board wants to hang onto Fred Goodwin, it will have to offer other scalps.

New SocGen chief has free hand for sweeping review

18 Apr 2008

Frédéric Oudéa will take over as CEO of the fraudplagued French bank as current chief Daniel Bouton retires to a nonexecutive role. Other key people could go. Oudéa is free to review thoroughly the bank s options including a tieup with a competitor.

Crunch time for bank capital

17 Apr 2008

Forcing banks to hold bigger cushions by enhancing the Basel framework is a good step. But implementing this too quickly might curb lending and exacerbate the current crisis. Still, that shouldn t stop banks from raising capital now or regulators from leaning on them to do so.