Corporate Governance

Google turns volatility into compensation

15 Dec 2006

The search engine s plan to allow employees to sell vested options is neither free lunch nor an outrageous executive perk. It cleverly capitalizes on investors who may be willing to pay something for stock options that employees may not value at all.

Wall Street poaches again from the gamekeepers

12 Dec 2006

JP Morgan's hiring of Stephen Cutler as general counsel follows the trend of recruiting senior SEC lawyers to lofty Wall Street perches. Cutler is like an insurance policy for when disaster strikes. JPMorgan could also use a rethink of its legal tactics.

Sistema dusts off Soros’s Russian telecom plan

12 Dec 2006

The billionaire came unstuck in 1997 with his $1.9bn Svyazinvest investment. He hoped to cash in on Russian telecoms restructuring. Now a Russian company is trying again. Sistema is better placed than Soros was. But there are still some big risks.

Geronzi conviction could put Capitalia in play

8 Dec 2006

The Italian bank s powerful chairman is set to be suspended over a fraudulent bankruptcy case. If he really goes, the main obstacle to a merger will be removed. This could give ABN Amro another chance to pounce. The Italian bank s powerful chairman has been suspended over a fraudulent bankruptcy case.

Corporate governance: is the Higgs Code past it?

29 Nov 2006

Probably not. But, as ITV and Standard Chartered have shown, many UK companies are finding ways to govern as they want. Shareholders don t seem worried. But that may change the markets turn down. Then they could look for scapegoats.

Willie Walsh is a man in a hurry

26 Nov 2006

The British Airways chief executive is making progress on the big problems, like the pension deficit and the sale of the regional business. But this is far from done and dusted. And crowing about such "successes" could easily backfire.

India’s cost advantage isn’t just with the workers

24 Nov 2006

Companies such as Infosys pay their top management a small fraction of what US bosses get. With the average Fortune 500 CEO paid 600 times as much as the average employee, it s time to outsource the boss.

Goldman’s London executive office response to conflict issues

20 Nov 2006

Sending Van Praag to London and the earlier appointment of Gnodde as cohead of Europe follow a series of controversial attempted deals. Goldman has realised that to avoid brand damage, it doesn't just need smart dealmakers; it needs a 360 degree perspective.

Stork’s defiance shouldn’t be end of matter

14 Nov 2006

The Dutch company has astonishingly rejected the overwhelming wishes of shareholders who want the company broken up. A legal fight which may help define Dutch shareholder rights may now be on the cards.

German CEO ousters necessary by-product of globalisation

14 Nov 2006

Deutsche Telekom s coup follows a similar one at VW. All in all, six of the top 20 German corporate heads are under pressure. The common theme the move from local to global is hard work. Germany is getting there, but the road is bumpy.

Overstock understocked with capital

7 Nov 2006

The internet retailer s CEO, Patrick Byrne, has spent more time fighting critics allegedly led by a Sith Lord than running the business. His efforts have been entertaining, if misplaced. The group may need to raise more cash next year. That will be very difficult.

Pischetsrieder’s ouster bad for VW shareholders

7 Nov 2006

The carmaker's chairman, Ferdinand Piech, has won the longrunning power struggle with the man he anointed as CEO five years ago. Piech's will to retain power stymied Pischetsrieder s revitalisation attempts. His departure leaves investorunfriendly managers in control.

Washington Post trumps NY Times

3 Nov 2006

Four years ago, these two newspaper dynasties tangled under the Eiffel Tower over the IHT. But it was a pyrrhic victory for the Times. Since then the Times has lost half its value the Washington Post none. The way they are governed may partly explain why.

Peugeot needs new CEO – now

27 Oct 2006

The French car company can t seem to shake off the doldrums. It just issued another profit warning. The current CEO is a lame duck, and search for a new one is dragging on. But Peugeot can t afford to wait. The French car company can t seem to escape the doldrums. It just issued another profit warning.

White squireen buys into Aer Lingus

18 Oct 2006

It s not clear what mobile phone bigshot Denis O Brien is up to. But he may be looking to block Ryanair s bid for patriotic reasons. Whatever his motives, his emergence is another hassle for Ryanair boss Michael O Leary.

Investors cheer as backdaters walk the plank

17 Oct 2006

The stock options scandal has so far led to the departure of bosses at five US companies. On average, that s benefited shareholders. It appears that investors largely consider getting rid of the boss a small price to pay for removing uncertainty.

NBC is still GE’s albatross

13 Oct 2006

The industrial giant s entertainment business remains a drag on earnings and the company s weak link. Things may improve next quarter, but patience is wearing thin. Shareholders should support a spinoff of the business.

Sovereign’s board forces Sidhu out as CEO

11 Oct 2006

The Pennsylvania bank chief s wheelerdealing ways have finally caught up with him. His disgruntled shareholders will be happy. Just the rumour that he was on the way out boosted the bank s value by more than $1bn.

Sovereign’s board wakes up from deep sleep

6 Oct 2006

It s almost a year since the bank s directors acquiesced as chief Jay Sidhu forced a valuedestructive double deal on investors. Now, spurred on by a poorly performing stock price and an activist shareholder on the board, they want to boot him out.

York’s departure bad for GM

6 Oct 2006

Kirk Kerkorian s representative has resigned from the car company s board claiming fellow directors were resistant to outside ideas. York s influence waned as GM s performance improved. The dispute over the failed alliance talks with Renault/Nissan was the final straw.