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Corporate Governance

Mark Zuckerberg listening tour could start at home

31 May 2017

Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.

Samsung gambles on an heirless future

31 May 2017

The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.

Market forces fail working women in Asian hubs

25 May 2017

Hong Kong and Singapore are depressing places for women aspiring to boardroom roles. There has been glacial progress in promoting the gender, despite the proven business benefits and an ample talent pool in both cities. Authorities should embrace quotas to fix the imbalance.

Ford shareholders in confused tizzy over strategy

12 May 2017

A 37 pct drop in the share price since Mark Fields became CEO should have owners asking questions, even if the carmaker’s valuation raced ahead of rivals who are now catching up. Railing against the family’s supervoting stock feels good but won't fix Ford's immediate issues.

France makes life too easy for pushy bosses

12 May 2017

Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.

Bombardier clears Canadian funds for takeoff

11 May 2017

In a rare revolt, pension funds ejected the train and plane maker's executive chairman. But it took a long downward spiral and outrage over pay to prompt action. A successful siege at a family-controlled national champion should inspire action elsewhere earlier and more often.

PPG might as well go hostile on Akzo

11 May 2017

It has little to lose by taking its $27 bln bid for the Dutch paint maker straight to shareholders. If Akzo invokes its poison pill, the deal falls away anyway. And if the U.S. suitor wins shareholder support, Akzo’s board will face enormous pressure to make the tie-up friendly.

Shareholder battle weakens Akzo’s standalone case

9 May 2017

Activist investor Elliott is taking the Dutch paint maker to court in an attempt to oust chairman Antony Burgmans. Akzo’s defence against suitor PPG rests on its stock trading on a higher multiple after a corporate rejig. But bad governance could cancel out any upside.

London could trip on Aramco’s IPO red carpet

4 May 2017

The city’s stock exchange is considering a new kind of governance-lite listing to attract the Saudi oil producer. Innovation is okay, if new rules are clear and existing ones aren’t watered down. Too naked a desire to please the powerful, though, would hurt London’s reputation.

Add Wells Fargo chairman to fake-accounts firings

25 Apr 2017

Just 56 pct of shareholders backed Stephen Sanger, a stinging rebuke for his failure as lead director during the scandal. After 5,300 employees and the CEO paid with their jobs, he and other board members with lackluster support should go, too, to help the bank rehabilitate.

Heineken ought to depose the King of Good Times

21 Apr 2017

The Dutch brewer is the largest shareholder in India's biggest beer maker. An embarrassing agreement with arrested tycoon Vijay Mallya leaves Heineken bound to accept him as chairman. Heineken should lead a charge to sack him anyway and hope to win any resulting legal battle.

Markets are wary of new blot on Japan Inc’s image

21 Apr 2017

Fujifilm has discovered dodgy accounting in its Kiwi unit. It is merely a $200 mln flub. But investor anxiety is understandable. What looked like a manageable accounting problem at Toshiba spiralled out of control. The photocopier-maker's mediocre governance is unhelpful too.

Samsung’s enemies pick the wrong battle

20 Apr 2017

Politicians in Seoul want to stop Samsung restructuring using treasury stock. They argue it's a trick for the ruling Lee family to gain more control cheaply. But the resulting firms would be worth more, and be better run. Keeping the status quo would be a Pyrrhic victory.

Huishan board implosion begs for director reform

19 Apr 2017

Mass resignations have left a troubled Hong Kong-listed firm without a working board. Independent directors were first to eject as problems mounted. Investors need more competent and reliable sentinels. Stronger minority representation could do the trick.

Bollore kicks down unlocked door at Telecom Italia

11 Apr 2017

French raider and Vivendi Chairman Vincent Bollore will soon nominate the majority of the telco’s board with only a minority stake. Governance purists could snarl at potential conflicts. Still, resistance has so far been weak, and Bollore’s influence has not been a bad thing.

Foxconn’s offer to Toshiba is too rich to ignore

11 Apr 2017

The Taiwanese giant is reportedly dangling a $27 bln offer for Toshiba's memory unit. This could be bluster: Foxconn must bid high to offset political concerns, and may end up cutting its price. Still, Toshiba owes it to long-suffering investors to take this seriously.

Zara may end up bound by family ties

7 Apr 2017

The founder of Spain's Inditex, which owns the fashion chain, placed his stake in a holding company, ensuring his heirs keep control. It looks benign for investors, who have made handsome returns. The problem comes if future retail disruption calls for a break from tradition.

Fosun may hit M&A trail again after CEO leaves

29 Mar 2017

The co-founder of Club Med’s Chinese owner suddenly quit, citing health reasons. He had helped improve the insurance-to-leisure giant's finances. Power is now concentrated with acquisitive chairman Guo Guangchang. A new deal binge could unsettle both creditors and shareholders.

New AIA boss can retain Tucker’s policies

13 Mar 2017

The Asian insurer has chosen continuity in promoting regional chief and industry veteran Ng Keng Hooi. Growth might not match the stellar run under outgoing boss Mark Tucker but, barring dividend tweaks and bolt-on deals, his successor need not change much. AIA is in good shape.