Corporate Governance

M&S boss considers taking options at 400p

13 Jul 2004

Rose shouldn t just consider it; he should do it. Even better would be to accept an exercise price that ratchets up every year. This would amount to Rose putting his money where his mouth is when he says shareholders should reject Green s 400p of cash.

Sainsbury remuneration vote to expose family’s weakness

8 Jul 2004

The retailer s controlling family can t really vote for the remuneration report following the Peter Davis fiasco. It can t easily vote against, either, given its previous support for Davis. But an abstention will just underline its impotence.

Hicks Muse rushes Premier Foods to market

5 Jul 2004

With an enterprise value of nearly £1bn, the grocery products maker is being priced below earlier estimates. Difficulties in some units hurt valuation. For the float to succeed, investors need to be convinced of the group s defensive qualities.

Sainsbury’s governance not that dysfunctional

4 Jul 2004

The palace coup that ejected Peter Davis shows shareholder power can be felt even in unfertile areas. Despite being effectively controlled by a family, the voices of minority shareholders still got heard.

Sainsbury’s Peter Davis had to go

1 Jul 2004

The architect of the supermarket group s failed strategy was standing in the way of effective change. Now Justin King, the new chief executive, looks set for a radical review. This could be pretty painful, at least in the short term.

Shell gets a wake-up call from investors

28 Jun 2004

The oil giant managed to pull through all its resolutions at the AGM, but not without embarrassing protest votes. Even so, Shell can t ignore calls for change for much longer.

Ex-RCS boss gets E15m reward for failure – reports

23 Jun 2004

Maurizio Romiti is thought to have been paid almost as much as Klaus Esser's appreciation bonus at Mannesmann. If he'd delivered a fraction of the value Esser did, there would be no cause for complaint.

Shake-up at RCS Media deserves two cheers

22 Jun 2004

The poor management of the Italian media group has been forced out and a bad demerger plan nixed. But the power games are probably not over. And it's unclear if RCS can attract a good manager.

Shell inches in the right direction

17 Jun 2004

Revealing details of its corporate governance review, albeit after investor pressure, is a step forward for the oil and gas giant. But investors shouldn t get their hopes up. The chances of a muchneeded overhaul of its dual structure don t look good.

Glaxo needs Chris Gent’s charm above all

26 May 2004

Gent brings two qualities to the chair of the UK pharmaceuticals group a silver tongue and a penchant for deals. But given Glaxo's lowly valuation, he'll need to talk up its prospects before he gets stuck into M&A.

Vivendi boss should have disclosed bond trades

18 May 2004

Directors who buy securities issued by their own company face potential conflicts of interest. And the same holds for relatedparty deals. There is no evidence that Jean Rene Fourtou succumbed to these temptations. But had he told the market, no one would have raised an eyebrow.

Vandevelde to quit as M&S chairman

9 May 2004

The struggling UK retailer now needs a new chairman who can judge whether Roger Holmes should stay as CEO. If Holmes is the right man, he should be backed to the hilt; if not, he should be sacked.

Unilever should have one boss – not two

7 May 2004

The AngloDutch food giant is reforming its doubleheaded structure. But only a bit. It should go the whole hog. It s not as if having two bosses has pepped up its performance. Quite the reverse.

New SanPaolo governance a missed opportunity

3 May 2004

The Turinbased bank has taken a step forward by getting rid of two of its three chief executives. But the bank remains politicised and unwieldy. Creating value either through a merger or on its own doesn't look much easier.

Schrempp gets some help from his friends

28 Apr 2004

The German press suggests he might be fired. Don't believe it, given the interlocking web of interests at Daimler. For all the talk about AngloSaxon governance, Deutschland AG is still alive and well.

Citigroup in corporate governance flap

14 Apr 2004

Plans by funds to withhold a vote for CEO Prince partly over a potential conflict with his wife is like using a sledgehammer to crack a nut. The risk with this protest, like others, is that it will dilute what little power a withheld vote offers to improve corporate governance.

Buffett under pressure at Coca-Cola

10 Apr 2004

Influential shareholder advisers are recommending a vote against the legendary investor at Coke s April 21 meeting, calling him conflicted. Here is a perfect example of how shareholder activism can be downright nonsensical when applied in an orthodox manner.