Corporate Governance

SEC should force options-backdating confessions

16 Jun 2006

Chairman Cox is correct to put options backdating under the microscope but he needs to move faster to root it out. He should follow exSEC enforcement cop Stanley Sporkin and offer firms a choice: come clean now or face harsher penalties later.

Vodafone pay revamp won’t hit bosses hard

14 Jun 2006

The mobile operator is linking executive pay closer to shareholder returns. But that could make them better off. It will allow them to milk the group s steep rise in dividend and reduce their chances of being left with more outofthemoney options.

Naked shorts come out of the closet

12 Jun 2006

This murky practice is now being blamed for Vonage s disastrous initial public offering. That may not be fair. Nevertheless, regulators are right to take a dim view of naked shorting.

Google goes after spreadsheet junkies

6 Jun 2006

But Google s release today of a new, webbased spreadsheet product doesn t threaten Microsoft s dominant Excel just yet. While the hype focuses on that threat, this is really just another clever brand extension and hypegenerator from Google.

Sarin needs to impress Bond

5 Jun 2006

Vodafone's CEO will ride out investor protest at July's AGM. Last week's payouts bought him time but he still needs get the share price up. If it doesn't budge, he'll be back on the ropes and have to rely on Sir John Bond, Vodafone s incoming chairman, to give him a final life.

Class-action law firm may get first $1bn fee

2 Jun 2006

Lerach's fee from forcing investment firms to contribute to a huge settlement in the Enron case is part earned, part windfall. A large part of the Enron settlement simply came with the territory. The judge should consider this before approving such a fee.

Minorities fleeced in Brazilian corporate reform

2 Jun 2006

Several Brazilian companies are junking holding companies and dualclass share structures. That should be good news. But at telecoms firm TNE a proposed reform treats nonvoting shareholders unfairly.

Vinci management clean-up isn’t over yet

2 Jun 2006

The chairman has resigned, ending an unseemly squabble with the CEO and boosting the French construction firm s quoted value by E1bn. That s a good day s work. But Vinci needs to go further still. It s cronypacked board is also begging for change.

Why are hedge fund bosses minting fortunes?

26 May 2006

The average pay of the top 25 hedge fund managers rose 45% to $363m in 2005. That partly reflects the scale of management fees. The old 2 and 20 fee structure gave way to 5 and 44 in the case of Renaissance Technologies, whose boss made an astonishing $1.5bn.

Goldman promotes client guy

23 May 2006

The naming of Yoel Zaoui as sole head of investment banking in Europe comes just after Goldman's clients seemed to be taking the back seat. There may be no connection between the two events. But Zaoui looks like he'll be a strong advocate of corporate clients in internal debates.

Blackstone beefs up advisory with Studzinski

18 May 2006

The arrival of the former Morgan Stanley M&A boss will raise the profile of the buyout firm's hitherto discreet midcap advisory business. That may bring in more fees and column inches. But it may bring in conflicts too.

Enron duo could be guilty for deliberate ignorance

12 May 2006

The judge presiding over the fraud trial said he would allow jurors to consider the socalled ostrich theory of criminal wrongdoing. This means if Lay and Skilling are shown to have put their heads in the sand while subordinates went wild, they could be found guilty.

German bosses may get their contracts cut

9 May 2006

The nation s corporate governance commission is reportedly proposing to cut senior executives contracts to three years from five. Bravo. But if firms tepid response to the voluntary disclosure of bosses pay is anything to go by, only a new law will end the golden handshakes.

Expect no more home runs from Buffett

8 May 2006

The billionaire downplayed expectations at his AGM. But he still believes the Berkshire Hathaway culture creates a longterm advantage. But it's difficult to see how the "faith" uniting the conglomerate and its shareholders can survive the inevitable departure of its boss.

Austrians bail out Bawag

2 May 2006

It was the attempted coverup that brought on the liquidity crisis. Ironically, it was not the huge losses it made on derivatives trades that nearly sunk Austria s fourth largest bank.

Morrison’s CEO payout looks like rewards for failure

26 Apr 2006

True, it s hard to see how much autonomy Stott really had. But shareholders are now left footing the bill for Sir Ken s mistakes. The UK retailer is paying £1.4m to see off Bob Stott, a lieutenant of chairman Sir Ken Morrison, even after five profit warnings.

Vodafone irritated with Goldman conflicts – exclusive

24 Apr 2006

The mobile giant is probably Goldman s best ever European client. The bank was used for iconic transactions like the hostile Mannesmann bid. Vodafone is annoyed because Goldman is advising rivals another sign of how the bank s franchise as a trusted adviser is being eroded.

Will anyone run Alcatel and Lucent?

24 Apr 2006

The terms of their merger reportedly require twothirds board vote to remove the chairman or the chief executive. The transatlantic power sharing agreement between the telecom equipment makers is already a fudge. Institutionalising it is a poor idea.

Porsche consolidating power at Volkswagen

24 Apr 2006

Porsche boss Wiedeking is seen heading for Piech s job as VW chairman; he s apparently got union backing. That s bad news for shareholders. He ll arguably become the most powerful man at VW. Shareholders should rally against Wiedeking at VW s AGM in May. Porsche boss Wiedeking is seen heading for Piech s job as VW chairman; apparently with union backing. That s bad news for shareholders.

BSkyB sacks Goldman as broker – exclusive

21 Apr 2006

This may seem astonishing given the traditionally deep relationship between the Murdochs and Goldman. But given that Goldman just tried to buy ITV, one of Sky s biggest rivals, and is a close adviser to NTL, its other, you can see why.