Corporate Governance

Goldman reminds top dogs it can do what it wants

23 Feb 2022

The Wall Street firm may confiscate stock issued to a banker who left to start a business for Walmart. Goldman has historically gone easy on employees who join big clients. But competitors are proliferating, and boss David Solomon needs a firm hand to deal with new rivals.

Citi’s Jane Fraser embodies Wall Street’s pay gap

15 Feb 2022

The new CEO’s $22.5 mln package lags jumbo sums awarded to JPMorgan’s Jamie Dimon and Goldman Sachs’ David Solomon. Citi hasn’t been a great investment. But overemphasizing past returns could leave Citi the worst of both worlds: A troubled bank with a boss in need of motivation.

Toshiba rejig goes long pragmatism, short vision

7 Feb 2022

The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.

Capital Calls: U.S. jobs growth gives Fed cover

4 Feb 2022

Concise views on global finance: Employers added a solid 467,000 positions, reflecting economic resiliency despite a new wave of Covid-19 infections.

Nelson Peltz board swap leaves unresolved conflict

2 Feb 2022

The activist gave up a board seat at Invesco to take one at rival Janus Henderson, while holding stock in both fund managers. If the companies decide to merge, Peltz is a conflicted broker with inside knowledge. Even a good suggestion becomes unnecessarily controversial.

Santander’s U.S. clinginess has a share price cost

2 Feb 2022

The 55 bln euro bank is keeping its American unit, unlike rivals BBVA and BNP. Full-year results show Chair Ana Botín is running it well, and she has plans to keep it growing. But investors give her scant credit. If that persists, the pressure to sell will become overwhelming.

Capital Calls: Netflix, Google-India

28 Jan 2022

Concise views on global finance: Netflix hints at deals by flagging the risks associated with potential acquisitions; Google’s $700 million investment in Bharti Airtel also reflects on Reliance.

SoftBank No.2 exit shows bad timing all round

28 Jan 2022

Marcelo Claure overhauled both Sprint and WeWork for the $70 bln conglomerate. His departure was at least partly about money, per media reports. Expecting a bumper payout as shares halved looks a poor move. But SoftBank is losing a key player just when steady hands are needed.

Beijing has shortcut to prop up real estate

28 Jan 2022

Regulators are trying to stabilise the market, but buyers are reluctant and economic stress is increasing. Sharp cuts to interest rates or easing up on property developers would sabotage deleveraging efforts. Relaxing heavy mortgage restrictions is an easier compromise.

New backer would fuel Aussie hydrogen hype machine

25 Jan 2022

Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Everyone wins in India’s telecoms debt reset

12 Jan 2022

New Delhi is set to become Vodafone Idea’s top owner via a $2.2 bln debt-for-equity swap. The deal saves India’s No. 3 operator, spares its lenders and averts a duopoly. With the government on side, raising tariffs and securing outside investment will be easier too.

Turkish mobile spat exposes state fund weakness

10 Jan 2022

Billionaire Mikhail Fridman wants to overhaul Turkcell’s board to boost the $3 bln group’s valuation. Turkey’s state wealth fund, which appoints most of the directors, looks an obstacle. With stakes in other ailing companies like Turkish Airlines, it’s proving a poor custodian.

Nelson Peltz needs to choose his asset manager

7 Jan 2022

The activist's Trian wants board representation at Janus Henderson, backed by its 17% stake. But Trian also owns 10% of Janus competitor and potential merger partner Invesco. If it came to a deal between the two, Peltz would look conflicted and that could discredit his arguments.

Samsung tech prowess drained by governance woes

7 Jan 2022

Operating profit at the maker of microchips and Galaxy phones is set to hit a four-year high of $11.5 bln. Despite the dominance, it trades at a discount to Apple and TSMC. A recent management shakeup provides a chance to tidy up the leadership mess and boost shareholder returns.

Capital Calls: HSBC and China, Dr. Martens

6 Jan 2021

Concise views on global finance: The Asia-focused lender has a chance to take greater control of its mainland brokerage after recent positive noises from Beijing; buyout firm Permira picks a good time to offload shares in the $5 bln bootmaker.

Dissent endures for Hong Kong shareholders

6 Jan 2022

The buyer of camera components maker Yorkey Optical lifted its offer by 14% after pushback from activist investor David Webb while minority owners thwarted tycoon Joseph Lau’s attempt to take his Chinese Estates private. Small financial victories carry greater meaning these days.

Capital Calls: Beyond Meat’s faux chicken

5 Jan 2021

Concise views on global finance: The plant-based meat company’s shares jumped 5% on news KFC will offer its product. The extra value assumes benefits beyond selling buckets of substitute fried chicken.

Capital Calls: BlackBerry’s demise is a warning

4 Jan 2021

Concise views on global finance: Life support ends on Tuesday for the once ubiquitous phone's operating system. When cult gadgets lose their edge to devices that do much more, the descent can be inexorable.

ESG acronym is due for a spin-off of its initials

24 Dec 2021

Lumping environmental sustainability, social justice and corporate governance into a single bucket is a clumsy way to address three complex and distantly related challenges. Savvy executives and investors want to separate them. E, S and G will be more valuable after a breakup.