Corporate Governance

Jain’s rights issue reluctance could go down badly

1 Oct 2010

Unlike his boss, the head of Deutsche's investment bank is not taking up his full entitlement to buy shares in the German lender's 10.2 bln euro cash call. There are good reasons why Jain may not be stumping up fresh cash. But they won't help his chances of becoming the next CEO.

HP at least half-right with new leadership choices

30 Sep 2010

The tech company s decision to appoint exSAP boss Leo Apotheker as CEO raises questions. He was forced out at SAP, and may have a tough time firing up HP s troops. On the other hand, HP s decision to split the chairman and CEO roles is solid.

Rolls-Royce finds clever succession solution

30 Sep 2010

After his 14 years as CEO, succession to John Rose was coming to dominate analysis of the UK aeroengine maker. Now he is finally stepping down, an outsider from food retailing has been appointed in his place. The move makes more sense than it might seem.

Pru’s chairman should not be allowed off the hook

30 Sep 2010

The UK insurer is looking to add city bigwig Paul Manduca to its board, potentially as senior independent director. After Pru's failed AIA bid, new board members are vital. But unless Manduca's task is to identify a new chairman, the reshuffle won't go far enough.

HP’s best bet for new leader lies within its ranks

30 Sep 2010

The tech group s search for Mark Hurd s replacement is leading to overheated speculation about which outsiders, from IBM or Apple, might get the job. But an inside candidate would be better placed to repair tattered morale and less likely to cause an exodus of talent.

UniCredit risks messy compromise

30 Sep 2010

Federico Ghizzoni, who has been appointed the bank's next CEO, seems a decent internationallyminded manager not in hock to local politics. But the probable appointment of a general manager with lots of power could undermine the CEO and spawn further intrigue.

BP’s board clean-up has far to go

29 Sep 2010

The Gulf of Mexico disaster has claimed another victim, in the shape of BP's key exploration and production division. The boss is going, and it's to be broken into three pieces. Further postMacondo upheavals are coming, and safety is paramount. Let's hope they mean it this time.

HK’s first proper proxy fight sets right tone

29 Sep 2010

Shareholders in GOME have foiled its jailed founder's plan to kick out two board directors, but denied the Chinese retailer the right to dilute him at will. That's the right result. GOME may gain more by learning to live with the troublesome activist than by trying to squash him.

Why is Citi paying a Houston oil banker $30 mln?

29 Sep 2010

That s how much the bank, which pays its CEO $1, reportedly offered UBS s energy team chief. It s a hot sector, and Stephen Trauber is being paid for performance. But such largess risks angering Citi s rankandfile and exacerbating its cycle of having to overpay for talent.

Investment banker CEOs need to learn new tricks

28 Sep 2010

Traders and dealmakers are taking charge of some of the world's largest lenders. The crisis showed the importance of understanding markets and managing risk. But if regulators and investors get their way, the new bosses will need a crash course in oldfashioned retail banking.

Another red flag raised over UK corporation tax

27 Sep 2010

Wolseley is redomiciling to Zurich for tax reasons. The bluechip UK building supplies group will escape harsh taxes on income from its sprawling global empire. Capitalised, the savings could be worth 400 mln stg. This may add oomph to the coalition's review of the status quo.

UK bank probe keeps options, but route is clear

24 Sep 2010

The opening message from the commission into UK banks is that everything's on the table: GlassSteagall breakups, antitrust remedies, you name it. But while the commission has given itself latitude, it's easy to see what it should, and probably will, end up deciding.

Confidence the missing link for real M&A recovery

24 Sep 2010

The market is doing a good impression of being back on its feet, after a disastrous 2009. But the numbers are flattered by some blockbuster deals. Stronger balance sheets, cheap finance and the need to cut costs mean the ingredients are there. What's missing is confident CEOs.

UniCredit fiasco worse than HSBC’s

24 Sep 2010

The Italian board's governance is more convoluted and the defenestration of its boss more dramatic than its UK counterpart's. Finding a new CEO with the backbone to stand up to local and national politicians will be a huge challenge. No wonder the stock has been squished.

Moscow mayor’s troubles catch out an oligarch

23 Sep 2010

The Kremlin's battle to oust Moscow's influential mayor Yuri Luzhkov has caught an oligarch, potashandgold king Suleiman Kerimov, in the crossfire. Kerimov can probably weather the storm. But the freezing of his assets in Cyprus is a timely reminder of Russia's political risk.

HSBC shouldn’t rush into chairman compromise

23 Sep 2010

The latest idea to resolve the impasse over who should lead the bank is Douglas Flint, the finance director. Though the mess is embarrassing, HSBC should take time to consider external candidates. Then it must lay down strict guidelines to ensure the fiasco doesn't happen again.

Vatican still at pains to deal with Mammon

22 Sep 2010

Two executives at the Vatican's bank are being investigated for money laundering. The Catholic Church is perplexed and amazed. However painful it may be to submit to Man's laws, Rome must accept the fact that the rising demand for transparency extends to its financial empire.

If Geoghegan vows to go, HSBC should let him

22 Sep 2010

The bank's CEO reportedly threatened to quit unless given the chair. Elevating Geoghegan never looked ideal. If true, the leak makes it impossible to appoint him. But HSBC has options. It must pick the right chairman, ideally an outsider, even if it has to replace the CEO too.

RUSAL’s criticisms of Norilsk are half right

21 Sep 2010

The metals group controlled by Oleg Deripaska has lambasted Norilsk's governance and performance, saying they saddle the miner with a $20 bln discount. Deripaska makes an unlikely shareholder champion, but his governance criticisms are valid. Sadly the rest is less convincing.

UniCredit’s Profumo pays price for his missteps

21 Sep 2010

Alessandro Profumo, until now one of banking's great survivors, is set to quit as CEO of Italy's UniCredit. The government and local shareholders may have had it in for him. But poor performance also made him vulnerable. Still, his disorderly exit reflects badly on the bank.