Corporate Governance

HSBC’s new chairman ticks the right boxes

13 Mar 2017

The emerging markets bank has picked AIA boss Mark Tucker to succeed Douglas Flint. He brings deep understanding of Asia, good contacts with regulators, and finance sector knowledge. As the first external chair in HSBC’s 152-year history, he will need all those skills – and more.

Viewsroom: Trump’s bad prescription for Obamacare

9 Mar 2017

The U.S. president and congressional Republicans’ rush to ditch the Affordable Care Act is spawning pox-plagued legislation. Meanwhile, Deutsche Bank tries to get its financial house in order. And State Street’s fund managers are pushing to get more women on corporate boards.

Scarcity of UK chairmen is partly man-made

9 Mar 2017

Rio Tinto’s Jan du Plessis is leaving for BT. Barclays and Standard Life’s chairs will reportedly stay put for two years, with the latter likely to replace the former. The merry-go-round shows too few people can run complex boards. Increasing the supply requires lateral thinking.

Stinky Chinese M&A leaves investors flush

8 Mar 2017

Two directors at Yingde Gases want a police probe into the chairman. All three plan to sell their shares to a buyout firm touting a $1.5 bln takeover. U.S. rival Air Products may offer more. It is a bizarre example of bad governance working out well for independent shareholders.

Board diversity is good use of passive voice

7 Mar 2017

Women in the boardroom can improve performance, but U.S. companies have been slow to adapt. State Street, where three of 11 directors are female, is threatening proxy fights if companies don't widen their gender horizons. It's a smart way for quieter fund managers to get pushy.

Under Armour’s founder-led approach wears thin

31 Jan 2017

The $12 bln athletic-wear maker reported its slowest top-line growth in eight years. Its CFO is also bailing out. The news wiped a quarter off the company's market value. Founder Kevin Plank's argument for keeping power through non-voting stock looks increasingly threadbare.

Snap makes any good-governance pretense disappear

20 Jan 2017

The messaging app whose photos vanish wants to sell only non-voting stock in its upcoming IPO. Facebook and Alphabet waited years to move from dual-class feudalism to such derisive treatment of shareholders. What should be designed to fade away instead is these share structures.

Samsung arrest spells trouble for Korea’s chaebol

16 Jan 2017

Prosecutors are seeking an arrest warrant for heir Jay Y. Lee. It could disrupt a long-running succession plan for South Korea's biggest group. By rattling a conglomerate that drives national fortunes, Seoul raises hopes that real corporate reform could come thick and fast.

Tata’s new chief is good step toward redemption

13 Jan 2017

IT whizz Natarajan Chandrasekaran is the closest thing to an outsider to lead the Indian group; he gives Tata Sons a real shot at fixing thorny governance issues. He can also help his successor at cash cow Tata Consultancy tackle a tough job as the U.S. cools on visas.

Market indifference to Samsung swipe unhealthy

11 Jan 2017

Heir Jay Y. Lee is now a suspect in a corruption scandal involving South Korea's president. Yet shares in flagship unit Samsung Electronics comfortably beat an up market. Hardened investors are too used to local company bosses running into trouble – and deftly getting out of it.

Air Products can endure Yingde’s gas tactics

11 Jan 2017

Yingde Gases has answered a bid from its $31 bln U.S. rival with a noxious plan to sell a 10 pct stake via a private placement. It looks like an unfriendly response to an opportunistic move. Air Products' size means it can afford to wade into this messy Chinese boardroom spat.

Sports Direct undercuts exec pay ideals

6 Jan 2017

The retailer’s bosses receive an apparently model mix of low salaries and performance-based awards. The former CEO’s fixed pay was less than a twentieth of Martin Sorrell’s at WPP. Yet an exemplary pay mix has failed to deliver either shareholder returns or good governance.

Samsung hits a sweet spot in new technology cycle

6 Jan 2017

The world's biggest smartphone-maker expects fourth-quarter operating profit to top $7.7 bln, smashing expectations. As more devices move to new-generation memory chips and displays, Samsung's early investments in those areas are starting to pay off. That bodes well for 2017.

Tata is $10 bln poorer post-Mistry

20 Dec 2016

Ousted Chairman Cyrus Mistry has ended his boardroom battles at India's Tata. The value of Tata's main listed firms has shrunk over the two-month saga, underperforming a weak market. The damage illustrates the value of good governance and a strong reputation to public companies.

Goldman adds a splash of color to executive ranks

14 Dec 2016

Two bald white male vets will replace Gary Cohn, the bald white president who won't replace Lloyd Blankfein, the bald white chairman and CEO of the bank. So the appointment of Martin Chavez as CFO stands out in many ways – jokes aside, mainly for his entrepreneurial background.

Outside shareholders tell Tata to shape up

14 Dec 2016

Almost half of minority investors in Tata Consultancy Services voted against removing Cyrus Mistry as a director of the Indian conglomerate's crown jewel. The rebuke sends a clear message to patriarch Ratan Tata: either fix governance or take tighter control of group companies.

Match.com owner’s pushy profile a real turnoff

13 Dec 2016

IAC Chair Barry Diller steamrollered Michael Eisner and other directors in his bid for eternal control with a new class of stock. The governance is abysmal even by Silicon Valley standards. CalPERS is suing. But the media mogul's power grab will encourage more shareholder abuse.

Biotech double defenestrates independence hopes

12 Dec 2016

The CEO and CFO of $30 bln Alexion have both left immediately. That's bad enough by itself. But the departures come in the midst of an investigation into sales improprieties. That, and a lack of transparency from the company, leaves Alexion open to a takeover.

CEOs don’t deserve bonuses just for going shopping

1 Dec 2016

Activision's Bobby Kotick will receive an extra payout for doing a "transformative" deal. Investors have to benefit, but only for a limited time. Sensible M&A is part of what CEOs are already paid for. There's no need to reward them twice – or to encourage risky acquisitions.

Japan has long road to black-belt in governance

1 Dec 2016

The country is the darling of Asia's corporate governance scene after a push to make firms better-run and more profitable. But progress is slow – and the easiest steps came first. To be a real governance ninja requires stronger boards, bolder bosses and more shareholder scrutiny.