Management & Leadership

LeEco showcases tech hubris in widescreen format

19 Jun 2017

Jia Yueting’s outfit aimed to be Apple, Netflix, and Tesla in one. Now it is slashing jobs, pulling back abroad, and fielding lawsuits. LeEco was exceptionally ambitious. But when overconfident founders have a free rein and easy money, the results rarely make comfortable viewing.

Packaging veteran ticks right boxes for BHP

16 Jun 2017

The Anglo-Australian mining giant named Ken MacKenzie as its new chairman. The former manufacturing executive lopped heads and boosted returns at his last job, and was unsentimental about weak business lines. Activist investor Elliott is pleased. Other shareholders should be too.

U.S. lawmaking umpire’s budget may meet resistance

15 Jun 2017

The Congressional Budget Office, the nonpartisan number-cruncher, wants a 7 pct funding bump. The Trump team doesn't control that directly, but it isn't giving other data agencies extra and it dislikes the CBO. It's crucial, though, to a rational assessment of new legislation.

Anbang drama is coda to China’s M&A craze

14 Jun 2017

Reports say Chairman Wu Xiaohui has been detained. Various factors could be at play: China is getting tough on swashbuckling insurers, and a political power shuffle looms. This may also be a further sign that Beijing has run out of patience with splashy foreign dealmaking.

Uber’s journey to good governance jerks to a start

13 Jun 2017

CEO Travis Kalanick will leave temporarily as the ride-hailing firm tries to impose order. An indefinite absence and putting a shrinking group of direct reports in charge are murky first steps. Finding an independent chairman should help, but the board could use a bigger shakeup.

Viking blazes hedge-fund path with capital return

13 Jun 2017

The hedge-fund giant is replacing its CIO and returning $8 bln to investors after a spell of poor performance. Viking hopes to generate stronger returns by working with fewer assets. This could be a teachable moment for an industry struggling to justify its excessive fees.

Getting Uber out of reverse hard for whoever’s CEO

12 Jun 2017

Whether it's Travis Kalanick or anyone else, running a sprawling enterprise is a challenge. Uber also faces a mass exodus of senior executives, a toxic culture about to be laid bare and a business model based on inventing the future. Downward spirals in tech don't often end well.

GE’s CEO choice pushes the boundaries

12 Jun 2017

By anointing John Flannery to succeed Jeff Immelt the industrial titan is doubling down on a strategy that transcends its U.S. roots. Flannery knows restructuring and has run GE units from India to Argentina. Geographically and structurally, the company's lines may be redrawn.

Lebenthal marks end of two eras on Wall Street

8 Jun 2017

It was 1925 when Alexandra's grandparents opened their municipal-bonds shop. Her father James and TV ads gave it renown in the 1970s. She's now exiting as CEO after a lack of scale impeded efforts to revive the firm post-crisis. Family offices, not brokerages, are the new order.

Complex pay ties British companies in knots

7 Jun 2017

Tesco paid boss Dave Lewis a 142,000 pound allowance to move closer to work, while Burberry’s Christopher Bailey got a big share award at a delicate time. Both controversies are a distraction. If they kept pay simple, companies and investors could focus on more pressing issues.

KKR bid tests investor faith in Aussie telco

7 Jun 2017

The U.S. buyout firm offered $1.7 bln for the struggling Vocus, a mild premium for a battered target. Shares in the Australian group are down over 60 pct since last June on downgrades and management problems. Given weak prospects, KKR is betting investors have lost confidence.

Felda joins list of Malaysia’s money headaches

7 Jun 2017

The palm oil giant has suspended its chief after auditors raised a red flag. There are echoes of the 1MDB scandal: Felda is state-backed and investors have been burnt in a listing pushed by Prime Minister Najib Razak. It adds to the noise as Malaysia heads towards a key election.

Qatar crisis points to quick but uncomfortable fix

6 Jun 2017

As Arab states and U.S. President Trump align against the emirate, the chance of leadership change is rising. Another reshuffle within the ruling family might unblock trade and diplomatic links without affecting Qatar’s economic prospects. But the precedent would be alarming.

Cox: Sgt. Pepper also taught the board to play

1 Jun 2017

It was 50 years ago that the Beatles spawned a music boom. The industry has changed, but the album's messages still resonate, even in the business world. As Warren Buffett or Steve Jobs might attest, if we work together, experiment and fix holes, things get better all the time.

Publicis pay hike shows where real power lies

1 Jun 2017

Long-time boss Maurice Lévy will receive 2.8 mln euros as chairman – more than he was paid as CEO. After 30 years in charge of the advertising group he has much to teach his successor. But his presence on the board inhibits fresh thinking at a firm that has struggled for growth.

Trump climate exit has bright silver lining

31 May 2017

U.S. support for anti-warming measures will be missed, if its withdrawal from the Paris accord is confirmed. But states, cities and businesses remain on board. And for nearly 200 other countries, including top polluter China, progress may be smoother free of D.C. foot-dragging.

Exxon climate vote puts sector on notice

31 May 2017

Over 60 pct of shareholders backed a move that forces the $340 bln energy giant to ramp up global-warming disclosure, up from under 40 pct in 2016. Exxon already embraces the climate debate more than many in the industry. Holdout peers will have to follow or risk investor ire.

Mark Zuckerberg listening tour could start at home

31 May 2017

Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.

Activist adds teeth to Ericsson’s turnaround

31 May 2017

Cevian has taken a 5 pct stake in the Swedish telecoms-kit maker. Boss Borje Ekholm’s strategy of slimming down and boosting margins is sound, but lacks credibility as he was on the board when things turned sour. It can’t hurt to have a big investor breathing down his neck.

Samsung gambles on an heirless future

31 May 2017

The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.