Corporate Governance

Daniels’ exit from Lloyds clears way for new broom

20 Sep 2010

The UK bank CEO, one of the duo responsible for the disastrous HBOS acquisition, is to retire in a year's time. Given that Lloyds is poised for a fight with Britain's banking commission over its market share, the board should install a credible successor even earlier if possible.

Vodafone chair critical for providing air cover

20 Sep 2010

The mobile operator's CEO says he doesn't want to be a forced seller of assets like its stake in Verizon Wireless. But to stick the course, he'll need a strong chairman to replace John Bond, who has been damaged by the row over Vodafone's previous M&A mania.

U.S. foreign tax rules look ill-conceived

20 Sep 2010

Washington wants foreign banks and brokers to help it keep track of American citizens, or face a hefty levy. Big firms will have to comply, but smaller ones may prefer to stop accepting U.S. clients. The administration shouldn't expect its lenders to be welcomed abroad.

Svyazinvest row is fresh blot on Russian business

17 Sep 2010

The Russian telco is a hotbed of conflict and resignations. Behind the public bickering lies what looks like battle for management control of the state's growing telecoms empire, which raises concerns about links between state and private interests.

Diamond’s rise demands a strong Barclays board

17 Sep 2010

Persistence, skill and a dose of good fortune propelled the UK lender's new CEO to the top. But in the postcrisis world, enthusiasm must be tempered with caution and diplomacy. It will be up to Barclays' board of directors to channel Diamond's expansionist instinct.

Is Marchionne Italy’s Thatcher?

16 Sep 2010

The Fiat CEO's threat to move the carmaker's production abroad if unions don't accept productivity gains is real. There are echoes of Thatcher's clash with British unions in the 1980s. If he triumphs, it could be the start of a new era for industrial relations in Italy.

Petrobras samba with government may not be over

9 Sep 2010

Brazil gouged the oil group in its $42 bln reserves transfer. But at least it seemed to remove uncertainty. Think again: the contract may allow Brazil to raise the price, regulatory filings suggest. For those worried by state meddling, this is a troubling disclosure.

Hybrids: a gentle reminder of the risks

9 Sep 2010

Investors' search for yield has spawned a revival in hybridbond issuance by corporates. These quasidebt, quasiequity securities are meant to be winwin, giving companies cheap finance and investors good income. But buyers should remember they've been burned by hybrids before.

Walter Hewlett could give HP its Steve Jobs moment

8 Sep 2010

The man whose name is on the tech company's door led a campaign against Carly Fiorina's troubled reign and her Compaq deal. He turned out to be right. HP's board clearly needs a wholesale shakeup after botching the Hurd affair. Why not let him lead the effort as chairman?

Diamond should be left to get on with the job

8 Sep 2010

The new Barclays CEO is getting brickbats from politicians because he's an investment banker who will be running a universal bank. Diamond certainly faces an operational challenge at Barclays' retail division. But the leadership of this bank shouldn't be decided by politics.

Goldman-to-Glaxo move may be sign of M&A splurge

8 Sep 2010

The pharma giant has picked Simon Dingemans as its new CFO. The move gives the Goldman dealmaker an escape from the antibanker backlash, and his expertise will be useful as the drugs industry consolidates. But bankersturnedcorporate executives have a mixed track record.

Oracle shows off art of war by hiring Mark Hurd

7 Sep 2010

Sun Tzu admirer Larry Ellison roundly mocked the HewlettPackard board when it forced out its CEO last month. By hiring Hurd, the Oracle boss backed up his words. He not only gains a wellregarded operations guru, he follows the Chinese general's dictum Know your enemy.

HSBC’s vacant chair creates a dilemma

7 Sep 2010

Both obvious choices to replace Stephen Green, who is to become UK trade minister, have problems. Elevating CEO Michael Geoghegan may antagonise investors who want an outsider. Appointing John Thornton, a nonexecutive who is based in China, could worry the UK regulator.

Barclays’ Diamond choice spices up strategy debate

7 Sep 2010

The selection of investment bank head Bob Diamond as CEO is not a surprise. But it adds a twist to Barclays' debate on its future structure. If UK regulators make universal banking harder, the bank could be less motivated to keep its UK retail bank or even stay in London.

Disclosing banker pay is too much of a good thing

6 Sep 2010

George Osborne says he's committed to making banks disclose how many staff are paid a million pounds. But the UK finance minister would be right to rethink the idea. Disclosure is generally a good thing, but banks are right when they say the plan could drive up pay inflation.

New Rosneft CEO cements political control

6 Sep 2010

While investors may welcome the end of uncertainty, the replacement of independentminded Sergei Bogdanchikov with career bureaucrat Eduard Khudainatov shows that Russia's largest oil company is more politicised than ever. This should temper enthusiasm about privatisation plans.

Deripaska will struggle to keep a hand in Norilsk

1 Sep 2010

The oligarch has suffered a setback in his row with the Russian nickel miner, after Vladimir Putin rejected his criticisms of Norilsk's dividend policy. Without political support, Deripaska may be better selling the 25 pct stake held through debtridden aluminium giant Rusal.

Hurd scandal gives HP chance for governance reboot

9 Aug 2010

Losing Chairman and CEO Mark Hurd to sexual harassment and expense fiddling charges will hurt, after all the good he did for the tech company. Finding a replacement with both operational and strategic expertise won't be easy. HP should use the moment to split the two roles.

BP board must pre-empt CEO and chairman plotting

12 Jul 2010

The oil major needs change at the top to restore confidence. But does that mean firing CEO Tony Hayward, chairman CarlHenric Svanberg or both? While the answer is uncertain, each man has an interest in saving his own skin. The board must prevent the situation getting ugly.

Deripaska loses battle in war over Norilsk

1 Jul 2010

The indebted Russian aluminium tycoon is fighting to get more cash out of the metals giant. But he was beaten down at the AGM by an old oligarch rival. The still well connected Deripaska will keep trying, but for now his crude attempts to increase his influence have backfired.