Corporate Governance

Investors should block Fresenius transformation

16 May 2005

The dialysis group plans to simplify its capital structure but also adopt a legal form that vests more control with the family company. Ordinary shareholders have little to gain from this change. And it may result in FMC trading at a discount.

Boerse risks another corporate governance spat

13 May 2005

The exchange is not disclosing ousted CEO Werner Seifert s contractual payoff, reported to be a staggering E10m. Disclosure in Germany is improving. But this case shows investors still struggle to get the information needed to hold managers to account.

Myners joins attacks on investor amateurism

13 May 2005

The investment guru has endorsed a recent call by Cadbury's chairman for better disclosure from pension fund trustees. It would be great if trustees were more professional. But it will take changes in personnel and in incentives to achieve this.

Breuer and Seifert to leave Deutsche Boerse

9 May 2005

The chairman and chief executive have bowed to the inevitable after it became clear they had lost the backing of shareholders. This may leave a power vacuum at the German exchange group, but that's better than an ugly public showdown at the annual meeting.

M&S has got itself in a pickle

3 May 2005

Should Myners stay on as the retailer s chairman, the relationship between him and senior independent director Lomax may well be strained. But if Myners goes, Rose the chief executive who is supporting him may have his own difficulties with the board.

Seifert should leave Deutsche Boerse

29 Apr 2005

The exchange chief may have dropped unpopular plans to buy the LSE, but he still personifies a strategy opposed by many of his shareholders. He s also lost the confidence of some of his largest investors. Clinging on with only shaky support is not in the company s interest.

M&S shouldn’t rule out Myners

25 Apr 2005

The retailer s interim chairman has shown he can make time for the job. He wants it, and there's no evidence he is too close to CEO Rose. Myners shouldn t be a shooin, of course. But to exclude him would be pure boxticking.

Alcatel picks Aussie as heir apparent

19 Apr 2005

The French telecom equipment maker s succession plan raises more questions than it answers. Namely, is it really a succession strategy? And if it is, does this choice represent another shift in the group s strategy?

Heineken family ousts boss

12 Apr 2005

Ruys may be unlucky to have carried the can for three tough years, during which shares in the Dutch brewer underperformed the market. But Ruys did make mistakes, particularly with acquisitions. What s more, the new management structure is clearly positive.

Nestle gets its knickers in a twist

12 Apr 2005

The Swiss food group has bungled the controversial elevation of its chief executive to the chair. Nestle may think it is immune to shareholder pressure. It isn t. It needs to get its act together before it finds itself in a real crisis.

Wallenbergs pay only lip service to modern world

12 Apr 2005

The new generation of the Swedish industrialist family has thrown investors a chicken bone with the management shuffle at Investor. It is doubtful the investment vehicle has a role to play. Spinning off its holdings in AstraZeneca, Ericsson and others would create value.

Compass Group’s board deserves closer scrutiny

8 Apr 2005

Two profit warnings have highlighted the unorthodox corporate governance structure at the world's largest catering company. While Compass was on track, investors overlooked the unusually cosy setup. But if the rough patch continues, they should demand action.

Achenbach’s exit at Karstadt a mixed blessing

8 Apr 2005

The German retailer's boss was only ever a standin and not a very effective one at that. So noone will rue seeing the back of Achenbach. But Karstadt has turned to another standin: its finance chief. He isn't a retailer, and his appointment may presage more financial trouble.

Alcatel’s COO, Philippe Germond, to quit

8 Apr 2005

This comes one week after the French telecom equipment maker announced plans to split the role of chairman and chief executive. This change would permit Serge Tchuruk, Alcatel s 67 yearold boss, to hang onto power until 2008.

Morgan Stanley’s Purcell tries to squash dissent

30 Mar 2005

He will need to do a whole lot more than force through management changes to make up for the bank s years of underperformance. The model he is clinging to is not working. By digging in his heels, Purcell risks weakening the core banking franchise.

Prudential ousts Bloomer

24 Mar 2005

The chief executive lost the confidence of many investors after several uturns, including a £1bn rights issue to fund domestic expansion. But the rest of the board, led by chairman David Clementi, has done a uturn too. It publicly backed Bloomer six months ago.

Fed tells Citigroup to stop buying

18 Mar 2005

The regulator is worried that a big acquisition would distract the giant bank s management from improving the corporate culture. Investors should be grateful for the mandatory pause. The company is probably not ready for the next big adventure.

JPMorgan chooses to run rather than fight

17 Mar 2005

The bank has paid $2bn to settle its WorldCom liability. That is 50% more than it would have had to pay last year. But the judge suggested that its maximum liability was $10bn. And in a postEbbers world, counting on a sympathetic jury would be reckless.

UK retail dogs lose finance director shield

15 Mar 2005

It is now up to the chief executives to turn these businesses around. If they fail, hiding behind CFOs will no longer be an option. Boots has just lost its finance director. M&S, Sainsbury and WH Smith have all appointed new ones.

Ebbers found guilty of WorldCom fraud

15 Mar 2005

The former telecoms mogul tried to convince the jury he was a yokel incapable of cooking WorldCom s books even if he tried. Even if jurors believed that, it failed miserably as a defence. Ken Lay better try another tactic to avoid becoming Ebbers cellmate.