Corporate Governance

Refocused Olympus provides a flash of hope

14 Jan 2019

As the $13 bln Japanese company turns 100, it is inviting pushy investor ValueAct onto the board, slashing costs and zooming in further on endoscopes and other medical kit. Changing the corporate culture has been a slog, though. A weak camera business also blurs the picture.

BlackRock is too passive on diversity goal

10 Jan 2019

The latest top-level promotion suggests a Mark or a Rob will succeed boss Larry Fink. The $6 trln asset manager aims to have women in 30 pct of its most senior jobs by 2020. For now, it’s falling far short of that. It’s a case where good stewardship best starts at home.

Hadas: Big mergers show capitalism’s bad side

9 Jan 2019

Celgene shareholders will welcome Bristol-Myers Squibb’s $74 bln takeover offer. The acquirer’s owners might eventually gain too. But such mega-deals distract managers and rarely serve workers or the common good. If corporate purpose was better and broader, they would be scarce.

Guest view: Banks need a culture shock

8 Jan 2019

Conduct failures from Wells Fargo to Goldman Sachs to Danske Bank have damaged trust in banking, and can have a serious impact on profitability. Reforming bank culture to avoid scandals requires changing behavior and attitudes. It’s a tough job - one that has to start at the top.

Ghosn puts up his freedom as bond for his legacy

8 Jan 2019

The deposed 64-year-old automaker CEO has declared his innocence. Given Japan's 99 pct conviction rate, he could face a decade in jail. Ghosn may hope prosecutors back off. Either way, the man who saved Nissan creates space to pull off another unprecedented rescue - of himself.

Larry Ellison is anything but a check on Elon Musk

28 Dec 2018

The Oracle founder calls himself a “very close friend” of the Tesla CEO and owns nearly $1 bln of the automaker’s stock. He also shares an imperious style and penchant for outsized pay. Musk’s SEC deal mandated an independent director, but Ellison is unlikely to rein him in.

J&J’s talc crisis will linger for years

14 Dec 2018

Investors erased $40 bln of market value after Reuters revealed the U.S. company knew for decades its baby powder was sometimes tainted by asbestos. Based on past consumer scandals, the real hit could be smaller but long-lasting. Lawsuits and brand damage don’t easily dissipate.

Holding: Supreme Court due for a dose of activism

10 Dec 2018

Like a dozy board, the U.S. tribunal has left confusing financial-fraud laws largely untouched for years. Yet a case argued last week - and a new justice - offer the chance to set the rules and Wall Street watchdogs straight. Shaking up the status quo would add value in the law.

Clash of activists could become feature in Japan

6 Dec 2018

Pushy U.S. hedge fund Elliott voted in favor of $5 bln Alps buying the rest of car navigation systems maker Alpine. Feisty Oasis had long been fighting to block the deal. Such rifts are rare, but may rise in a country where consolidation of affiliates is a growing battleground.

Ted Baker is stuck in a bear hug trap

4 Dec 2018

Ray Kelvin’s habit of embracing employees has become a liability for investors. If an internal probe shows he is culpable of more than unwanted coziness, the fashion brand could push its largest shareholder away. Even if he holds on, Ted Baker will grapple with other challenges.

Ghosn’s jail time risks poisoning alliance talks

4 Dec 2018

Nissan's former boss, accused of understating his pay, could see out the year behind bars, a local paper says - without being charged. His harsh treatment widens the gulf between Paris and Tokyo, making a deal on future ties between the Japanese carmaker and Renault even tougher.

India is hit hardest by Asia’s $4 trln water risk

30 Nov 2018

That’s how much GDP is at stake if the region doesn’t better manage the 10 Himalayas-fed rivers its economic hubs rely on. China appears to be steering a good course. But India isn’t fixing the governance mess exposed by rising water stress. That threatens economic growth.

Deutsche Bank’s new dark clouds have silver lining

29 Nov 2018

The lender has been hit by police raids linked to clients’ alleged tax evasion and speculation its investment bank head could leave. Yet Panama Papers issues have thus far not meaningfully hit European banks. And Deutsche’s traders should have a decent 2019 – whoever’s in charge.

Hadas: How to stop radical CEOs from going rogue

28 Nov 2018

Renault and then Nissan hired Carlos Ghosn to subvert conventions. But the will to transgress is hard to keep within boundaries. Companies have four defences against talented but errant bosses: bureaucracy, conscience, boards and punishments. All of them can be strengthened.

Singapore offers lessons in corporate succession

27 Nov 2018

The Lion City’s ruling party has set in motion a careful handover, identifying the man who will eventually become premier. Boardrooms, against which the island gauges itself, can learn from the planning. Both, however, would benefit from more diversity to prepare for shocks.

Short-seller tries tricky electric-car U-turn

22 Nov 2018

Citron Research, known for negative reports on stocks, is now backing Chinese manufacturer Nio as well as Tesla. Conceding the dominance of Elon Musk’s creation and then betting on a Tesla rival seems inconsistent. It’s a reminder that winners are as hard to pick as losers.

Nissan puts Japan’s governance drive into reverse

20 Nov 2018

The Carlos Ghosn fiasco suggests derisory oversight by a board whose few independent directors include a race-car driver. Ernst & Young ShinNihon, auditor of Olympus and Toshiba, may have done sloppy work too. The restoration of faith in Japanese boardrooms has been damaged.

RBI’s piggy bank can stand a New Delhi raid

20 Nov 2018

Under government pressure, India’s central bank will consider cuts to over $100 bln of reserves. Its capital cushion looks generous next to BRIC peers, but the country’s large budget deficit, its dependence on foreign capital and the danger of a bad precedent demand caution.

Facebook’s higher calling is now a liability

19 Nov 2018

The social network is getting grief from U.S. lawmakers for hiring Washington consultants to fight critics. Many companies do that, including older tech firms. Facebook, though, has styled itself as more than just a company. Mark Zuckerberg is now tripping up on that high bar.

Renault-Nissan pays price for Ghosn key-man risk

19 Nov 2018

Both carmakers’ shares tanked after Nissan said its chairman had understated his income and might leave. With Carlos Ghosn also Renault CEO, the two groups are reliant on one big hitter to solve their lopsided partnership. That’s a big problem if he’s no longer there.