Corporate Governance

Mack makes up his mind…sort of

9 Feb 2006

By naming Zoe Cruz and Bob Scully copresidents, Morgan Stanley s boss has put an end to the firm s nebulous management structure. But since neither is an obvious candidate to lead the company longerterm, Mack has left an opening for a successor and probably a deal.

GM trades Merrill’s O’Neal for York

7 Feb 2006

This is a healthy exchange. GM needs an experienced car boss with some skin in the game to light a fire under the board. Merrill CEO Stan O Neal, who started out at GM, may have offered free advice. But for both companies his presence was becoming a liability.

Sovereign slams shareholders in political smack-down

3 Feb 2006

The Pennsylvania bank s boss has taken his fight with shareholders to his friends in the state's political arena. It looks like he ll win. Governor Rendell should veto the bill that undermines shareholders rights. It s bad news for shareholders in all the state s companies.

SkyePharma hurries to ignore shareholders

3 Feb 2006

The UK drug group has decided to break itself up and appoint a new chairman, despite the vocal objections of 37% of shareholders. The dissidents are merely demanding a pause and a vote. The board s haste is odd and wrong.

Compass probe yields little comfort for investors

1 Feb 2006

The catering giant aims to draw a line under allegations of corruption by disclosing the findings of an external investigation. But challenges remain. Whoever steps up to the plate as Compass's new CEO will be taking a lot on trust.

Mellon’s new CEO shores up the strategy

31 Jan 2006

Robert Kelly s appointment as Mellon s new boss should silence critics demanding that the US bank split in two. He s a fan of Mellon s current business mix. Given the performance of the company and the share price, he s right.

Tronchetti tries to wriggle out of E1.5bn bill

31 Jan 2006

That s how much Pirelli s boss might have to spend to buy out his partners in Olimpia, through which he controls Telecom Italia. Such an amount would be a stretch. But Tronchetti might be able to reduce it by doing what he does best striking clever deals.

Bally underscores US shareholder impotence

30 Jan 2006

Some 70% of the health club s voting shareholders demanded the executive s head. More voted to block his directors. Yet he s staying put. Just shows that even when investors rise up en masse against management in the US, restrictive bylaws often prevent them from having a say.

Icahn enlists Biondi in Time Warner assault

30 Jan 2006

Set aside the fact that Frank Biondi s brother runs Lazard, Carl Icahn s strategic advisor on Time Warner. Biondi is still a catch. He s worked for and been fired from the biggest companies in the industry. Biondi adds credibility to a crusade that risked floundering.

Mack should clarify presidency

27 Jan 2006

Morgan Stanley s boss has made an unstable situation worse by leaving Zoe Cruz in the role of acting president. When he first arrived, this made sense as a way to lure back talent. But he has failed to do so. Seven months on, he risks sowing confusion.

Greenberg turns tables on Spitzer

25 Jan 2006

AIG s former boss wants to put the New York Attorney General on the witness stand as part of a novel defence against civil charges. He is upset that Spitzer used findings from an AIG probe to force him out of the insurer. But he will struggle to get Spitzer s testimony.

US regulators frown on strip clubs

24 Jan 2006

The NASD and NYSE are proposing a set of guidelines to prevent traders from using improper entertainment to woo deals from their clients. It s hard to fault wanting to cut back on these often inappropriate quid pro quos. But why can t the banks decide this for themselves?

Bankrupt US bosses enjoy big paydays

24 Jan 2006

UAL's will share $480m when the airline exits Chapter 11. That appears repugnant yet bosses deserves a premium for staying put. The trouble is that it has to be paid on top of the already excessive levels of executive compensation at US companies.

Deutsche hire could help defend its respectability

24 Jan 2006

Caio KochWeser's appointment as vicechairman means the outgoing chairman of Germany's financial regulator will soon be advising the board. If used effectively, he may help Deutsche avoid more embarrassments such as its links to Italy s banking crisis and an alleged rogue trader.

Blank has all Lloyds TSB needs in a chairman

23 Jan 2006

The UK bank has identified the right man to head its board. Sir Victor Blank has a track record of tackling underperformance head on. And he is overseeing the breakup of UK retailer GUS. That s exactly the strategy Lloyds should be pursuing.

Swisscom’s boss walks the plank

20 Jan 2006

It's not surprising Jens Alder has gone, after the Swiss government publicly rubbished his plans to make costly foreign acquisitions. The new boss should learn from Alder's mistakes: manage the government relationship better, and come up with a more valuecreating strategy.

Steve Jobs kissed goodbye to $2.5bn

20 Jan 2006

How come? After all, the Apple chief s Pixar stake is worth $3.6bn. And he ll pick up another $800m when his restricted Apple stock vests. But had Jobs not exchanged his underwater Apple options before the iPod s success, these options would be worth $3.3bn.

Daimler insider probe may raise questions for Kopper and Deutsche

19 Jan 2006

If correct, did this influence Deutsche s decision to sell a E1.4bn block of Daimler shares? The German press says Daimler's chairman is suspected of having passed information about CEO Schrempp s impending resignation to Deutsche.

Belgacom releases bad news cack-handedly

19 Jan 2006

The Belgian telecoms operator has delivered another blow to telecoms investors: internet TV will be more of a drain that it thought. What s more, it delivered the news at an informal analysts dinner. That raises doubts over its managers' judgment.

BPI board line-up disappoints

17 Jan 2006

New boss Divo Gronchi has proposed a new board. But two of the candidates are relics of the old Fiorani era. This bodes ill for the bank s chances of a radical cleanup.