Corporate Governance

Welch shows downside of supreme self-confidence

16 Apr 2008

Bold actions and minimal restraint helped the former GE boss become a business superstar. But Welch should have learned discretion with age. Then he might leave successor Jeff Immelt alone. The same goes for fading financial stars such as Sandy Weill and Alan Greenspan.

WaMu votes show why broker voting must go

16 Apr 2008

Angry shareholders in the troubled US thrift jettisoned one director. Two more squeaked by only because brokers voted undecided ballots in favour of incumbents. The SEC needs to eliminate this ballotbox stuffing.

Will Asian entrepreneurs put profits over family?

16 Apr 2008

Not quite but generational transfers aren t the only route aging founders are taking with their businesses. The sale of Hong Kong s Wing Lung Bank is one such case. If this is more than a fluke, private equity and Asia s investment bankers have reason to cheer.

UBS corporate governance shake-up not enough

14 Apr 2008

Chairmandesignate Kurer is proposing to ditch powers held by current boss Ospel and beef up the board's banking expertise. That's sensible. But it doesn't address the key question of whether Kurer, a lawyer, is the right person to fill even this slimmeddown chairman role.

Sunshine could help regulate Wall Street

8 Apr 2008

Forcing investment banks to disgorge more information could help stop them running excessive risks. They d know that smart market operators could use such information to trade against them and would therefore be more conservative in the first place.

BT’s new boss will have his work cut out

8 Apr 2008

Ben Verwaayen did a good job reviving one of the biggest victims of the tech collapse. But the last few months have exposed cracks in his strategy. Verwaayen s successor, Ian Livingston, has plenty to do to close BT s discount to peers.

Bank CEOs should endure the Star Chamber

8 Apr 2008

The financial crisis has shown too many bank bosses and directors aren't fit for purpose. What should be done about it? Hugo Dixon argues that bosses should face periodic grilling by regulators, and that there should be fewer but higher paid nonexecutive directors.

UBS needs a strong new chairman

7 Apr 2008

Peter Kurer, the general counsel who is being put up to replace outgoing Marcel Ospel, isn't obviously the right man for the job. UBS needs to demonstrate that he is before this month's AGM.

Semerci hops back on the gravy train

7 Apr 2008

The exMerrill man may have helped lose his old employer an eyewatering $27bn, but that s proved no bar to a new job running a London hedge fund. Semerci is living proof of Keynes s dictum, that in finance, it doesn t matter if you fail, so long as you fail conventionally.

CBS and Viacom should get back in bed

4 Apr 2008

CBS is getting into the cinematic territory of its former parent and the two are competing for assets. Sumner Redstone should just admit he goofed in breaking the two up. It would be better for shareholders of both firms if managed as one group without his erratic intervention.

Tactics aren’t everything for activists

1 Apr 2008

Carl Icahn s campaign against Motorola has been masterfully executed. The tech group has now essentially given in to all of his demands by backing two dissident board nominees. Too bad the investment has been a disaster where it counts.

AIG’s $20bn executive nest egg hatches discord

31 Mar 2008

The insurer s massive incentive plan surely motivated employees. It also created conflicts of interest. Intertwining the fortunes of AIG and its executives may have created wealth, but it ensured an acrimonious split.

M&S board to blame for Rose’s plum role

31 Mar 2008

It s outrageous that the UK retailer felt obliged to promote Stuart Rose to executive chairman. But don t blame him. Rose can only hold M&S to ransom because his chairman and board failed to secure a successor.

UK Treasury spinning its wheels on credit crunch

31 Mar 2008

The UK Treasury s proposals for supervisory colleges and a USUK working group look like the kind of eyecatching initiatives dreamed up by spin doctors. Here s what the Treasury should really be discussing with other countries.

Are accountants next in line for subprime blame?

27 Mar 2008

A new report critical of KPMG s role in the downfall of bankrupt lender New Century makes that look likely. But if so, it s the firm s own fault. More than any other type of professionals, accountants should have the upper hand when dealing with troubled companies.

FSA changes don’t go far enough

26 Mar 2008

The City regulator s mea culpa over Northern Rock is almost alarmingly honest. But the recommendations for change don t fully address whether management failings went to the top. And the FSA can t ask the biggest question why UK regulation is divided in three.

New Bear deal adds risk for JPMorgan shareholders

25 Mar 2008

The original terms gave them a modest buffer against losses at the Wall Street firm. The renegotiated price reduces that, and puts JPM investors on the hook if markets worsen. For now, shareholders seem willing to take that risk in return for Bear s remaining suite of businesses.

Glass Lewis turns blunderbuss on Morgan Stanley’s board

25 Mar 2008

The proxy advisory firm is recommending that shareholders vote against five directors who served on the Wall Street firm s audit committee. It s fair game to hold the board to account for last year s losses. But purging half of them risks destabilising the business.

Bear management lapses are lesson for investors

20 Mar 2008

Savvy investors back managers, not just businesses. Yet Bear Stearns bosses notably Jimmy Cayne were detached for months before the investment bank folded. They even did nothing after a mini run on the bank last summer. Burnt investors should know better next time.

Wall Street’s Hall of Shame welcomes new members

20 Mar 2008

The club which includes such luminaries as Jay Cooke, Michael Milken and Charles Barney now counts Jimmy Cayne and the Bear Stearns board among its new inductees. Unfortunately, despite the lessons of history, membership is still expanding.