Corporate Governance

GE can get ahead of chairman-CEO trend

25 Apr 2018

The conglomerate defeated a shareholder proposal to separate the top jobs. But 41 pct of investors supported the measure, up from 24 pct a year ago. Double-titled boss John Flannery could pre-empt an embarrassing rebuke next year, and improve governance, by embracing a split now.

Deutsche revival depends on more than cost-cutting

25 Apr 2018

New CEO Christian Sewing has said saving 800 million euros this year is “non-negotiable”. Even if the German lender meets his cost targets, though, revenue must grow 5.4 pct a year for Deutsche to earn a decent return on equity by 2020. That’s hard to do while shrinking.

United and Equifax boost GE chairman-CEO splitters

24 Apr 2018

The airline says having an independent chair lets CEO Oscar Munoz focus on running the company. Equifax is keeping the double act it adopted after last year’s massive hack. It’s recognition there are two jobs that need doing. Beleaguered GE is looking increasingly out of step.

U.S. bond yields may be throwing investors a curve

23 Apr 2018

The difference between short- and long-term Treasury rates is the smallest since before the financial crisis, raising fears of a coming recession. Yet the yield curve is a flawed warning, sometimes flashing years before a downturn hits. There are far better things to worry about.

Regulatory reprieve adds tonic to Barclays revival

20 Apr 2018

After a year-long probe, British watchdogs plan to fine boss Jes Staley for trying to unmask a whistleblower. The verdict keeps Staley in his job and avoids awkward questions for the regulators and for Barclays’ board. Staley can now focus on turning around the investment bank.

Japan would take turn for worse without Abe

20 Apr 2018

Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.

Wynn tosses female directors into boardroom brawl

18 Apr 2018

The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.

Hadas: Knowledge is better shared than patented

18 Apr 2018

China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.

L&G’s gender revolt has revealingly low bar

17 Apr 2018

The 983 bln pound asset manager will vote against chairs at UK companies if boards have too few women. It’s a laudable move. But the 25 pct threshold looks low, and traps groups as big as Barclays or London Stock Exchange. Diversity in British boardrooms has a long way to go.

Russia’s banks could once more be its airbag

16 Apr 2018

The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.

Mercuria/ChemChina oil each other’s strategies

16 Apr 2018

The Swiss commodities group looks set to get a stake in the Chinese state-owned giant’s refining assets, a rare coup. In return, ChemChina gets shares and a boost for Beijing's campaign to gain clout in global trading. It's a deal where both can profit.

VW changes boss to better effect than Deutsche

13 Apr 2018

Both companies replaced their boss mid-term. The automaker also unveiled management changes to help reduce costs and is preparing its trucks business for a potential listing. Volkswagen’s messy governance endures, but unlike Deutsche, its strategy has a better chance of success.

Opacity makes U.S. sanctions on Russia more potent

11 Apr 2018

Rusal aluminium will be barred from London’s Metal Exchange, and the Russian group and parent En+ will be deleted from some stock indices. In theory, non-Americans should be able to deal with both. But fear of how rules will be enforced is compounding the pain of tough sanctions.

Hadas: Even Trump can’t make graft great again

11 Apr 2018

Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.

Dutch lawmakers give Ahold backup in activist spat

10 Apr 2018

Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.

South Korean broker redefines fat-fingered trading

10 Apr 2018

Samsung Securities is reeling after clumsily issuing 2.8 bln shares to staff instead of 2.8 bln won in dividends. Worse, some employees swiftly offloaded the stock. Big clients are fleeing and regulators arriving. It's about as painful a way there is to erode trust in finance.

Malaysia’s strongman can use his second chance

10 Apr 2018

Najib Razak's reputation took a slap with the 1MDB scandal. Still, the prime minister is likely to win a fresh mandate in upcoming polls. That can help him secure a legacy as a reformer, if he handles China's influence adroitly and meets old pledges to cut the role of the state.

HNA takes circuitous route to streamlining

6 Apr 2018

The Chinese conglomerate's $6.4 bln stake in U.S. hotelier Hilton is now up for sale. It's a curious choice for a company built around travel and logistics. Financial services make less sense inside HNA. The restructuring choices suggest strategy may be a secondary consideration.

Disarming move gives BlackRock one more weapon

5 Apr 2018

Index funds have put the $6 trln asset manager over a barrel with holdings in gunmakers. Now BlackRock is responding with new products allowing investors to avoid producers and retailers of firearms. It's more than what the NRA might call virtue signaling - it's good business.

Apple stores up Yahoo-like trouble in China

28 Mar 2018

Keeping Chinese iCloud user data inside the People's Republic invites controversy amid Facebook's latest woes. After Yahoo shared emails with Beijing in 2004, Jerry Yang and other bosses were hauled up to Capitol Hill and called moral "pygmies." Apple should brace for blowback.