Corporate Governance

Jabre’s gamble goes spectacularly wrong

28 Jul 2006

The star hedge fund manager hoped that appealing his fine for market abuse would pave the way for a deal with Financial Services Authority. But this was a dangerous game of double or quits. Unfortunately for Jabre, the fine remains and he s now unlikely to work in the City again.

Hedge fund regulation not in the offing

25 Jul 2006

Despite the political bluster coming from a Senate hearing with SEC Chairman Cox on Monday, new rules do not look likely. The Bush administration is studying the issue with no deadline, a clue that farreaching hedge fund regulation is off the table for now. Despite the political bluster coming from a Senate hearing with SEC Chairman Cox on Tuesday, new rules do not look likely.

Heinz shareholders should give Peltz a chance

21 Jul 2006

The former raider isn t perfect, but he and his protege Peter May deserve board seats to keep the ketchup maker s feet to the fire. But as a further protest to its lacklustre performance, investors should withhold votes for a slew of other directors as well.

Options backdating claims first target

21 Jul 2006

The SEC swooped on the former boss of Brocade. But not for backdating, rather committing fraud. This highlights the difficulty of prosecuting options backdaters. As with Quattrone et al, the Feds have to get them for something else.

Hertz makes Ford look like a schmuck

21 Jul 2006

Just seven months after buying Ford's carrental business, its new owners are already sitting on a handsome gain. For Ford shareholders it s yet another missed opportunity. The company should have spun the business off to its owners.

Goldman’s Europe reshuffle may strengthen client side

19 Jul 2006

The appointment of Gnodde to run the region alongside Sherwood seemingly indicates a desire to balance the power of the traders. This looks good PR following the appointment of Blankfein, a trader, to run the firm globally and a series of corporate mishaps in Europe.

Microsoft needs to settle with EU

18 Jul 2006

Microsoft says it can t resolve the antitrust case due to lack of clarity. But failure to make peace damages its recruiting and reputation, aiding Google.

Juventus shows (again) that football and finance don’t mix

17 Jul 2006

The football team may have triumphed on the field, but even before its legal problems it was an investment basket case. It would probably be better as a private company. But many investors won t want to sell at the bottom.

GM’s directors should oversee alliance talks

7 Jul 2006

They ve rightly agreed to explore a tieup with NissanRenault and put CEO Rick Wagoner in charge of the discussions. He may feel threatened by Carlos Ghosn. To safeguard shareholder interests, the board should appoint one of its own to oversee proceedings.

Goldman’s private equity boss retires hurt

7 Jul 2006

Sharp s decision to stand down is understandable, given his reluctance to commit to a new fund for another five years. But he was also the main target of the recent spank from Hank and may not have enjoyed having his wings clipped.

Timing options grants hurts shareholders

7 Jul 2006

SEC Commissioner Paul Atkins says companies can save shareholders money by granting options just before releasing good news. He assumes that the option grants would be small. But the scandal over backdated options suggests that isn t the case.

LCH.Clearnet victim of hopeless governance

6 Jul 2006

In terms of botched and dysfunctional corporate governance, the clearinghouse takes some beating. It s CEO and Chairman have now been forced out by executive directors. This just underlies the importance of independent directors.

Sudden death seals Enron founder’s legacy

5 Jul 2006

With no chance of appeal or future redemptive acts of charity, his reputation as the tech bubble s bad boy seems assured. Ken Lay has died from a suspected heart attack only weeks after his conviction for fraud.

Forgeard’s departure doesn’t go far enough

3 Jul 2006

With Eads s controversial coboss out of the headlines, at least the aerospace giant can get back to business. But it s a shame that the Eads didn t go the whole hog and appoint just one chief executive.

Ford’s dual-class share scheme stymies recovery

30 Jun 2006

The Ford family controls 40% of the votes yet owns just 4% of the stock. This insulates management from shareholder pressure. General Motors boss has no such shield, and has been more aggressive with its cutbacks. Ford s structure may hamper its turnaround.

BP trips up in the US – again

29 Jun 2006

The Texas refinery explosion, leaks from BP s Alaska pipeline and now charges that the oil giant manipulated the propane market. There is no simple reason for BP s long list of US problems. But the appointment of a new boss there shows BP is serious about fixing it.

Eads shareholder pact should be scrapped

22 Jun 2006

The shareholder pact that controls Eads is an anomaly that serves nobody s interests. The French government is right to demand reform. But the reform that s needed is not the sort France has in mind. The key is greater shareholder democracy not more French influence.

Eads needs to rethink structure

21 Jun 2006

The aerospace giant s intensely political codecision making process didn t necessarily cause the problems with the A380. But the crisis has exposed its shortcomings. Talk of changing the shareholder and management structure is right on the money.

Eads share sales require rigorous investigation

16 Jun 2006

The boss of the aerospace group says it was an unfortunate coincidence that executives sold shares ahead of a profit warning. Perhaps. But the French authorities need to establish exactly when the A380 delays first came to light. And if the board wasn t told, why not.

Will Mike Bloomberg pull a Hank Paulson?

16 Jun 2006

NY s Mayor let slip that he may sell his financial information empire in the next year or so, sparking another round of speculation. Like Goldman s boss leaving for Washington, this might mark an exceptional skill for market timing.