Corporate Governance

Lehman snaps up Morgan Stanley’s European diaspora

20 Apr 2006

It s easy to see why. Lehman is doing lots of hiring, and is paying up to get talent. Morgan Stanley is going through a bloodletting. Defectors also think Lehman is like the old Morgan Stanley. That suggests Morgan Stanley boss John Mack should get with his reforms.

Murdoch caves in over News Corp poison pill

7 Apr 2006

This is a real coup for shareholders. The media tycoon has bowed to their demands that he allow a vote on the controversial defences. The wider significance of this victory is that firms listing in the US can still be held to Europe s higher corporate governance standards.

Buffett serves up the wrong formula at Coke

6 Apr 2006

CocaCola s board pay will be linked with earningspershare growth, according to a plan proposed by departing director Warren Buffett. Yet Coke s largest shareholder should know better than anyone the pitfalls of EPSbased compensation.

Vodafone shake-up a fresh boost for Sarin

6 Apr 2006

The mobile operator s CEO is reorganising management to better exploit new technologies and extract more value from its ragbag of assets. This will ease the pressure on the beleaguered Sarin. But he still needs to outline a convincing strategy at May s meeting with investors.

Citi let out of the doghouse by Fed

4 Apr 2006

The Fed says the bank made significant progress in improving risk management and is now free to return to the acquisition trail. But this may not be so easy given Citi s lowly rating, a consequence of its becoming a vast bureaucratic organisation thin on enterprise.

Breuer’s departure strengthens Ackermann

3 Apr 2006

Deutsche Bank is replacing an old school German chairman with a moderniser in Clemens Boersig. That should mean more unity on strategy. That said, there may be a fly in the ointment. Breuer is leaving because of a legal dispute with Leo Kirch. A big bill could be on the way.

Goldman’s Paulson gives investor the bird

31 Mar 2006

The broker s conservationist CEO saw off a shareholder s claim that chairing an environmental group conflicted with running the firm. Investors should be concerned if a CEO s outside directorships hit company profits. That s hardly a problem for Goldman.

Lapthorne must clarify his position at C&W

30 Mar 2006

How nonexecutive can C&W's chairman really be when he has four direct reports and has just replaced the finance director with a crony? Lapthorne effectively seems to be acting as chief executive without having to take responsibility when things go wrong. That s unacceptable.

FSA should not be swayed by Jabre appeal

28 Mar 2006

The UK regulator is facing public hearings into the £750,000 market abuse fine it levied against the star GLG hedgefund manager. It may be tempted to smooth Jabre s return to work on condition he drops his appeal. But if it believes in its case, it should tough it out.

Fifth Third CEO deserves no confidence vote

24 Mar 2006

The $22bn Ohio bank has become a basket case under George Schaefer s recent tenure. Earnings have crumbled and top managers have fled. With no clear turnaround in sight and troubles mounting, Fifth Third needs a more suitable leader.

Sovereign reaches truce with activist shareholder

23 Mar 2006

The US bank now selling a stake to Santander will nominate two outside directors, including the head of hedge fund Relational. This comes at a price Relational rescinds its demands for the CEO s head. But fold in the Spanish and the pressure is on.

Boards responsible for US corporate pay excesses

17 Mar 2006

Senior managers' windfall on the takeover of North Fork bank was so large they ve handed much of it back. Greedy CEOS and compliant compensation consultants are not to blame for the pay scandal. It s lax directors who should take the rap.

Investors should support majority votes

17 Mar 2006

How can shareholders in US companies make directors more accountable? Having the right to kick them off the board is a start. It works in the UK without the ructions opponents suggest. It might even help rein in runaway executive compensation.

Gent to quit as Vodafone life president

12 Mar 2006

The former boss's resignation is a step towards healing the rift that is tearing the mobile giant apart. But more departures will be needed. MacLaurin should quit as chairman, while Sarin is still on probation as CEO.

Don’t pin hopes on next Trinity Mirror chairman

12 Mar 2006

Investors seem hopeful that the UK newspaper group will find a strong replacement for Victor Blank, who will then sort it out. But Trinity could easily end up like Pearson: with a laid back chairman rather than a tough guy. Indeed the parallels are eerie.

Sarin’s job is still on the line

6 Mar 2006

The decision to sell Vodafone s Japan business and hint of a big dividend have bought the mobile group s CEO breathing space. But unless Sarin shows he can get a grip on Vodafone s disparate empire, Sir John Bond, the incoming chairman, will have to junk him.

HSBC’s hot M&A tickets are long overdue

21 Feb 2006

First Mittal. Now E.On. HSBC has landed the hottest advisory mandates of the year after two years of struggle. This is cosmetically impressive. But HSBC has yet to demonstrate that its investment banking strategy will deliver value for shareholders. First Mittal. Now E.On. HSBC has landed the hottest advisory mandates of 2006 after two years of struggle.

RadioShack head trips up on schooling

21 Feb 2006

David Edmondson was sacked as president because he made up two university degrees. It's easy to see the temptation in an MBAobsessed world. But he should have been proud to join the dropout tradition of Carnegie and Gates.

Time Warner shoos away pesky Icahn – report

17 Feb 2006

With only a 3.3% holding and an unimpressive turnaround plan, Icahn was always more gadfly than convincing conqueror. The US activist investor is now seeking only a minority of board seats and settlement talks with the media conglomerate.

VW restructuring doesn’t look very radical

13 Feb 2006

The carmaker is trying to squeeze concessions from workers. But these won t allow VW to catch up with its rivals, let alone overtake them. VW isn t a normal company though. Taking small steps may be the only way to overcome union opposition at least initially.