Corporate Governance

Sexual misconduct will haunt 2018 annual reports

29 Nov 2017

This year brought revelations of companies using shareholder bounty to settle allegations male executives harassed and made unwanted advances on mostly female workers. In the coming proxy season, expect investor proposals pushing for greater disclosure and action on the issue.

LSE boardroom ceasefire is least bad outcome

29 Nov 2017

CEO Xavier Rolet is leaving the London Stock Exchange immediately, ending an activist campaign for him to stay on. Chairman Donald Brydon will step down in 2019. The compromise averts a longer and more damaging public row. But nobody emerges from the saga with much credit.

Indian family writes its own philanthropic code

24 Nov 2017

The Bhartis are donating $1.1 bln to their own foundation. Though the sum pales next to other billionaire pledges, there's a creative twist. Money will be used to start a university to teach AI and robotics, free to poor kids. There's no global playbook when it comes to giving.

India eyes governance brute force to check tycoons

23 Nov 2017

A proposal to follow the UK and require listed companies to have separate chairmen and CEOs is heavy-handed. It comes amid an effort in India to learn from past mistakes that have brought a mountain of bad debt, but an overly prescriptive approach risks unintended consequences.

Gender bonds are more than feel-good investments

17 Nov 2017

Investors have flocked to the first-ever U.S. dollar bond promoting equality at work. They are smart to do so. It's more than good PR at a bad time for the war of the sexes. Given the correlation between moral behaviour and sound returns, the bigger issue is lack of supply.

P&G proxy fiasco is black mark on CEO David Taylor

15 Nov 2017

Five weeks after the Tide and Pampers maker triumphantly declared victory in keeping Nelson Peltz off its board of directors, an independent arbiter says the activist won. It's hard to conjure up a better illustration of P&G's insularity than its handling of the whole affair.

ECB haste risks slowing its bad-loan cleanup

10 Nov 2017

The central bank overstepped its authority with proposals to impose stricter rules on banks for non-performing loans, the EU’s parliament says. The ECB is right to target European lenders’ 840 billion euro mountain of bad debt, but its clumsy move may set back the effort.

Mickey Mouse offers Sky investors an escape hatch

9 Nov 2017

Walt Disney has expressed interest in buying parts of Twenty-First Century Fox, including its 39 pct stake in the British TV group. That gives Sky shareholders another option if regulators block Fox’s 11.7 bln pound bid for full control. Disney may even be a more logical owner.

UniCredit’s choice of new chairman is a good omen

8 Nov 2017

The Italian bank has sent a welcome signal by picking Fabrizio Saccomanni, a former finance minister and central bank official. It’s a break with the cronyism of the past that gave too little weight to banking expertise. The lender could do with more like him on its board.

China’s Sina fires up governance Wayback Machine

8 Nov 2017

Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.

Bill Ackman is losing his touch

7 Nov 2017

Fewer than one ADP shareholder in four backed the activist's bid for board seats at the payroll processor. That puts his Pershing Square hedge fund on a three-year losing streak after failed bets at Valeant and Herbalife – and makes it easy for other firms to ignore his demands.

Indian proxy firm successfully hits a nerve

7 Nov 2017

ITC, the $50 bln hotels-to-tobacco group, is alleging defamation over criticism of its board. Institutional Investor Advisory Services didn't persuade shareholders to vote against the chairman's pay. The case nevertheless is a turning point for scrutinizers of Indian governance.

TCI turns “inactivist” investor with LSE campaign

6 Nov 2017

The hedge fund usually demands that CEOs quit. This time it’s pushing for London Stock Exchange boss Xavier Rolet to stay in his job while criticising the chairman. The LSE board owes shareholders an explanation. The risk of a board spat, though, is that both men end up leaving.

Sina’s board wins Yahoo-like prize

3 Nov 2017

Bosses of the $8 bln Chinese web outfit thwarted a U.S. hedge fund's quest to add two directors. Sina's big problem is that it's worth less than its big stake in Weibo. As Yahoo laid bare, it can be hard to run a company whose value sits elsewhere – regardless of who's in charge.

The Exchange: Ellen Pao

2 Nov 2017

The investor sued Kleiner Perkins for discrimination, becoming a canary in the coal mine for a raft of sexual-harassment and gender-bias allegations rocking Silicon Valley, Hollywood and beyond. She discusses if this is a turning point for what she describes as a systemic problem.

India’s banks need more than just capital

2 Nov 2017

A $32 bln bailout will put banks back on their feet. But to compete with private sector rivals and prevent a repeat of past mistakes, further reform is needed. Longer terms for CEOs and better pay are vital. New Delhi should also transfer its stakes to a passive holding company.

Vivendi can unlock more time to stalk Ubisoft

1 Nov 2017

French laws may soon force the media conglomerate chaired by Vincent Bolloré to decide whether to bid for the 7 bln euro video-games group. He has more choices than putting up or shutting up. Vivendi can duck the decision by converting part of its stake into non-voting stock.

Under Armour’s governance is a value trap

31 Oct 2017

The sportswear firm’s stock tanked after a rare drop in quarterly sales. Broader retail woes don’t help. But shares have plunged two-thirds since founder Kevin Plank cemented control with non-voting stock. That gives investors little room to exercise the company back to health.

It’s past time for PetroChina to shed pipelines

31 Oct 2017

China’s largest oil and gas producer reported a 290 pct rise in quarterly earnings. The firm should now spin off its $87 bln pipeline network and share the gains with weary investors. Management might not like a breakup, but fortunately, state planners are here to help.

Samsung’s new bosses will have to be generous

31 Oct 2017

The tech giant is raising dividends to at least $26 bln through 2020. A tweaked returns policy also gives Samsung's three fresh CEOs-in-waiting and newly separate chairman room to hand back even more. That would help keep outside investors onside for an eventual restructuring.