Corporate Governance

Nelson Peltz’s ego may be only winner in scrap

4 Aug 2022

Investors in a London fund managed by the agitator are trying to replace its board and wind it down. The 80-year-old might prevail in a shareholder vote, but he still faces other battles. As he’s said to other executives, sometimes a compromise is better than a distraction.

Time for Volkswagen to park its Porsche IPO

28 Jul 2022

The 82 bln euro German group’s plan to list the luxury marque has been tarnished by its decision to name the same CEO for both companies. The IPO could be a distraction at a time when carmakers face a recession. The best option right now is a delay, plus a governance rethink.

Europe’s $6 bln space M&A is governance Death Star

25 Jul 2022

France’s Eutelsat and Britain’s OneWeb may merge to pool the cost of new broadband satellites. It de-risks things for UK shareholders, including the state, but Eutelsat investors hate it. Reconciling the interests of two governments and financial backers looks a thankless task.

Twitter and Snap could be M&A birds of a feather

22 Jul 2022

Both social networks are luring new users, but each is too small to go to the mat with Alphabet or Meta over advertisers, who will get more discerning as the economy slows. With both companies similarly valued, a merger has merit – if Twitter can tie up loose ends with Elon Musk.

Tesla investors bet on recovery and fantasy

20 Jul 2022

The electric-car leader’s 10% quarterly fall in sales reflects factory woes shared by other carmakers too. Yet with a market capitalization of $770 bln, Tesla is valued like none of its peers. The stock is buoyed by promises of a bigger revolution up boss Elon Musk’s sleeve.

Pete Stavros and his equity-for-all quest

31 May 2022

The KKR partner started the non-profit Ownership Works to help companies grant stock to entire workforces. He discusses the resistance, the success stories, and an ambitious plan to create $100 bln of wealth for employees on this episode of The Exchange podcast.

Capital Calls: Twitter snubs investors

27 May 2022

Concise views on global finance: The social media platform refused to accept the resignation of director Egon Durban, one more check for bad corporate governance. But it’s not like investors have held the company to a high standard.

Oil’s discards show the thrill of boring spinoffs

27 May 2022

A decade ago, oil firms jettisoned slow-growing refineries like Marathon Petroleum to focus on high-margin exploration. These businesses have returned far more than the exciting drilling business. The gap could widen, encouraging Big Oil to consider something similar.

Shopify’s governance revamp is so 2021

26 May 2022

Shareholders are being asked to give Tobi Lütke the ability to keep his voting power even if his ownership stake falls. That might have been palatable at the end of last year, when Shopify’s shares were worth five times as much as they are now. Now it just adds insult to injury.

Adler gifts German watchdog a shot at redemption

4 May 2022

BaFin’s probe into the property group has gained added weight after KPMG’s refusal to approve its 2021 accounts. The mess is an important test for new boss Mark Branson after the regulator’s Wirecard failings. Adler’s patchy disclosure and shaky governance make it an easy target.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

How to return control of companies to their owners

28 Apr 2022

Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.

UK fund manager picks canny time to do right thing

26 Apr 2022

The $10 bln Schroders is ditching its non-voting shares. A 37% discount to the voting stock helps smooth a deal without its dominant family losing out too much either. It’s a timely corrective to UK Chancellor Rishi Sunak’s efforts to lure more dual-share structures to London.

Porsche IPO is slow road to a higher VW valuation

20 Apr 2022

The German carmaker’s luxury brand could easily be worth 90 bln euros. Yet a plan to only sell 25% may limit the benefit for shareholders by leaving the company with a small free float and complex governance. Their consolation is that this listing may not be the final model.

Flighty Musk exposes Twitter’s flaky governance

11 Apr 2022

The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run.

Capital Calls: Credit Agricole’s Italian job

8 Apr 2022

Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.

Culture wars: Musk’s Twitter punt, French election

7 Apr 2022

Outspoken political and business leaders are making big moves. In this Viewsroom podcast, Breakingviews columnists discuss why Twitter may have reaped the benefits from Elon Musk’s investment and how French President Emmanuel Macron needs to work hard to win over voters.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Capital Calls: Gas stimulus

25 Mar 2022

Concise views on global finance: Direct payments to drivers are better than fuel tax cuts, but neither is ideal.

Toshiba board rebel mainly helps governance cause

17 Mar 2022

Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.