Sign In

Corporate Governance

Retailer puts huge discount on activist overreach

25 Sep 2017

Two hedge funds want to oust Tuesday Morning’s Steven Becker, a fellow pushy investor who ended up as CEO. The home-furnishing chain’s stock has fallen 62 pct on his watch - a reminder that having smart financial ideas doesn’t mean activists make good corporate chieftains.

Agarwal’s Anglo wager is risky way to plot breakup

21 Sep 2017

The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.

HBOS audit probe shows limits of bank accounting

19 Sep 2017

KPMG was right to accept the UK bank as a “going concern” shortly before its near-collapse in 2008, a watchdog has concluded. Pre-crisis audits deserve scrutiny, but accountants cannot replace regulators. Besides, publicly flagging HBOS’ frailty would have accelerated its demise.

Hong Kong is better off without dual-class shares

14 Sep 2017

Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.

Life as Jamie Dimon’s bête noir pays off for ISS

7 Sep 2017

The JPMorgan boss once argued investors who rely on proxy advisory firms for shareholder votes are “lazy.” Selling one of them just bagged Vestar a threefold return. New private-equity owner Genstar needs client demand for climate-related advice to skyrocket to match that.

Hadas: Good companies don’t have to self-harm

6 Sep 2017

Alphabet Chairman Eric Schmidt may be justified in not wanting to subsidise research critical of the web giant. Even so, powerful companies have serious social responsibilities. They can do better by expanding their mission, moderating greed and helping where they have hurt.

UK pay clampdown places enduring faith in markets

29 Aug 2017

The government will force companies to disclose how much their CEOs are paid relative to their workers. The move to restore public faith in business relies on shareholders to hold firms to account. But past efforts to improve transparency have failed to check corporate excess.

Uber’s new CEO choice will travel well

28 Aug 2017

Expedia boss Dara Khosrowshahi is a surprising but solid pick to run the ride-hailing firm. He has led a newly public travel company, delivering shareholder returns and ticking the right boxes on diversity. Still, Uber’s scale and fluid business model makes it a bigger challenge.

Samsung guilty verdict is a victory for reformers

25 Aug 2017

The de facto leader of South Korea's biggest business faces five years in jail after an historic corruption trial. Assuming the sentence is not overturned, this boosts President Moon, who vowed to rein in powerful conglomerates. It should scare other bosses into behaving better.

Infosys founders get second chance on succession

25 Aug 2017

Nandan Nilekani will return to chair the IT firm he helped found. That is less than ideal - but could calm investors after its first outside CEO quit. The reputation of the king of Indian fintech now rests on bringing in new faces and leaving a firm that won't crash again.

Samsung is worse off regardless of trial verdict

24 Aug 2017

A jail sentence for de facto leader Jay Y. Lee would leave Samsung’s flagship $300 bln unit rudderless. A legal victory would create problems, too: Lee’s defence of wielding little power at the wider group damages his authority. It has a leadership deficit either way.

Three steps to an Infosys reboot

22 Aug 2017

The $31 bln Indian IT giant is in a mess after its CEO quit. To restore confidence, it needs fewer bosses and to find a strong outside CEO. Publishing a report into whistleblower claims would also help draw a line under a founder's complaints of mismanagement.

Hyundai is easy target for South Korea’s reformers

21 Aug 2017

South Korea's antitrust chief has called out the autos-to-steel conglomerate's complexity and corporate governance. Hyundai's size and resistance to change made it vulnerable. With investors already anticipating an overhaul, this could yield a quick victory for the regulator.

Founders’ coup leaves a void at Infosys

18 Aug 2017

Vishal Sikka delivered three years of outsize returns. Now the Indian outsourcer's first professional CEO has resigned, against the board's wishes, after criticism from founder shareholders. Finding a solid outsider who can put up with the backseat driving will be challenging.

Elliott finds part-victory in Akzo defeat

16 Aug 2017

The U.S. activist failed to arm-twist the Dulux paint maker into a merger with PPG. The Dutch group has, though, committed to a full breakup and put two solid new members on the board. It’s a decent result for Akzo’s investors – although less than Elliott’s might have wanted.

Xi throws a bad Party for Hong Kong investors

15 Aug 2017

The Communist Party is tightening its grip on Chinese state-owned enterprises listed in Hong Kong. Beijing has usually set the agenda at SOEs anyway. But injecting yet more of President Xi's muddled market strategy into decision-making could cost investors.

M&A leaks further erode Asian markets’ credibility

11 Aug 2017

India, South Korea, Japan and Hong Kong were the leakiest M&A markets last year, a survey suggests. That is embarrassing given Asia is already a corporate governance laggard. Regulators can work harder to alter the risk-reward tradeoff, but a complete cleanup is near impossible.

Political crisis can turbo-boost overdue VW reform

8 Aug 2017

Parties which favour an overhaul of Lower Saxony’s relationship with Volkswagen may win a snap election. Ideally, the German state would sell its 20 pct stake. Yet waiving its privileged status, and dealing with the carmaker at arm’s length, would already be a big improvement.

UK CEO pay cut exposes compensation guesswork

3 Aug 2017

The average boss of a FTSE 100 company took home 17 percent less last year despite buoyant markets. Paying corporate leaders less assuages public opinion but underscores the challenge of linking pay to performance. Besides, CEOs still benefit from higher share prices.