Corporate Governance

Banks’ climate pledges suffer from water scarcity

22 Mar 2021

It barely gets a mention in Wall Street’s net-zero goals. Yet water accounts for a good slug of carbon emissions and 90% of global warming-related crises from U.S. droughts to Australia’s floods. Banks can speed toward sustainable finance by paying attention to the resource.

Danone’s purpose will survive chairman’s departure

22 Mar 2021

Emmanuel Faber’s sustainability credentials did not prevent the yoghurt maker from ousting him. But fears the group will disavow its ESG ideals are misplaced. The standards are embedded in the French company’s operations and legal status. Besides, investors still support them.

Review: When “Ocean’s Eleven” meets Chapter 11

19 Mar 2021

“The Caesars Palace Coup” rolls a casino caper and legal thriller into one edifying book. Dense bankruptcy lingo sometimes bogs down the ruthless scrap over $18 bln of distressed debt. And it’s hard to find a Danny Ocean in a Wall Street dramatis personae full of Terry Benedicts.

Founder move confirms Pinduoduo’s coming of age

17 Mar 2021

Colin Huang is stepping back from the $197 bln e-commerce upstart and relinquishing special voting rights three years after taking it public. It’s a bold move by a Chinese tech tycoon as Pinduoduo nips at rivals’ heels. But it leaves a shortage of top talent as rising costs bite.

Family feud presses Korea Inc to cry uncle

17 Mar 2021

A power struggle between Kumho Petrochemical’s chairman and his nephew is headed for a shareholder showdown. The dissident’s Elliott-like playbook already has persuaded the $6 bln company to improve governance and hike dividends. Winning a board seat would send a strong message.

Danone CEO exit gives France governance upgrade

15 Mar 2021

Boss Emmanuel Faber is leaving the 42 bln euro yoghurt maker after pressure from activist investors. It shows even French companies once declared strategic by the government are not safe from uppity shareholders. Underperformers whose chair is also CEO are now potential targets.

Hong Kong’s rich confront Chinese socialism

11 Mar 2021

The central government is changing the city’s electoral system and side-lining the local business elite. That might clear the way for a new pro-Beijing party to attack economic inequality at tycoons’ expense. Yet the Communist Party has failed to do so at home, or anywhere else.

Aussies find promising mine to bury coal in

11 Mar 2021

The country’s dirtiest power plant will close early after an agreement between owner EnergyAustralia and the Victorian government. The deal will cut emissions, foster renewables and help displaced workers. It could be a blueprint for others, if the finances weren’t so opaque.

Strong chairman is best way to fix BT board mess

9 Mar 2021

The UK telecom operator is seeking a replacement for Chairman Jan du Plessis, who stepped down under pressure from CEO Philip Jansen, Sky News reported. The fracas comes at a critical time for BT. Investors, directors and Jansen himself would benefit by recruiting a heavy hitter.

Chinese developer undercuts Wall Street’s ESG push

9 Mar 2021

Even after Seazen founder Wang Zhenhua’s imprisonment for child molestation, BlackRock, Pimco and others own the company’s bonds. Although his son now chairs the $15 bln group, Wang still controls it. Such examples make socially conscious investor messages sound like lip service.

Telecoms set the business tone in Myanmar

9 Mar 2021

Buyout group CVC may ditch a $700 mln deal for tower assets after a military coup, but Norway’s Telenor, a big taxpayer, and TPG are heavily invested. How the industry deals with the junta offers a proxy measure of how patient foreign investors will be with any new regime.

Rare lender deal underscores India’s credit reset

4 Mar 2021

Creditors of real estate lender Altico voted to sell its assets to a unit of New York-listed Ares. The out-of-court resolution is a sign of maturity in a market where the regulator is too often forced to intervene. Foreign distressed debt investors have other things to cheer too.

Top Glove triple listing bid is a stretch

3 Mar 2021

The world’s largest rubber-handwear maker wants to sell shares in Hong Kong on top of Malaysia and Singapore. Firms with small home markets must often move to grow but few can juggle the complexities of three bourses. That may provide cover for it to ditch the least useful.

Danone’s governance fudge sours activist defence

2 Mar 2021

Under pressure from shareholders, the $47 bln French food and dairy group said that Emmanuel Faber will give up his CEO role, but stay on as chairman. Faber’s continued influence may deter potential successors. The board’s decision to back his strategy also makes change harder.

Coupang’s next delivery: better disclosures

2 Mar 2021

South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.

The house always wins with SPACs

26 Feb 2021

In poker, if you don’t know who the sucker is, it’s you. That’s also true of blank-check firms like the one that just did a deal with Lucid Motors. Sponsors, SPAC traders, merger co-investors and target-company owners all rake it in. Regular shareholders get the crumbs.

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 Feb 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

Crown Resorts raises Aussie governance stakes

19 Feb 2021

The $5 bln casino operator just lost one gaming licence and another is now threatened by a new regulatory probe. A board shakeup should help its case, but director candidates are in short supply. The usual suspects fill too many seats: Crown Chair Helen Coonan is a prime example.

South Korea leans into wrong sort of socialism

17 Feb 2021

President Moon Jae-in is exploring a plan to encourage corporate titans such as Samsung to share pandemic profit with struggling peers. A crisis that includes soaring unemployment is a good time for bold policy. Shoring up public safety nets would be a better long-term fix.

Amundi governance cloud has M&A silver lining

10 Feb 2021

Europe’s biggest fund manager named Valérie Baudson CEO. The elevation of current boss Yves Perrier to chairman is an eyesore for a company that flaunts its ESG credentials. Yet given the $16 bln group’s need for acquisitions, keeping the seasoned dealmaker around makes sense.