Management & Leadership

Ford shareholders in confused tizzy over strategy

12 May 2017

A 37 pct drop in the share price since Mark Fields became CEO should have owners asking questions, even if the carmaker’s valuation raced ahead of rivals who are now catching up. Railing against the family’s supervoting stock feels good but won't fix Ford's immediate issues.

It isn’t easy being Barclays’ Jes Staley

12 May 2017

The UK bank chief is yet again in the spotlight after falling for an email spoof. After recent controversies involving whistleblowers and the blurring of work and outside interests, he is no doubt walking on eggshells. Breakingviews imagines a typical day.

France makes life too easy for pushy bosses

12 May 2017

Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.

Whole Foods board changes whet activists’ appetite

10 May 2017

The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.

Buffett’s praise of Jack Bogle sounds self-serving

7 May 2017

At his annual Omaha gala, the Oracle gave a well-deserved shout-out to Vanguard's founder. With big slugs of Berkshire Hathaway's portfolio struggling, including Wells Fargo and IBM, returns are converging with the S&P 500. That makes Buffett's strategy look more like Bogle's.

Cost cuts won’t save Pearson or its CEO

5 May 2017

The UK education publisher is planning 300 mln pounds of savings by 2020, with the troubled North America business taking some of the pain. Markets aren’t giving embattled boss John Fallon much credit for the plans, and falling revenue could cancel out the gain to shareholders.

M&S opts for safety over real shakeup

5 May 2017

The UK high street stalwart named Archie Norman as its chairman, days after finding a new boss for its clothing unit. His retail nous will bolster M&S’ turnaround plans. Yet the hire is the latest in a series of safe choices that underestimate the changes sweeping retail.

VW-Fiat Chrysler merger too tempting by half

4 May 2017

Welding together the German and the Italian-U.S. carmakers might unleash cost savings of more than $38 bln. As the auto industry gets more challenging, and Fiat Chrysler boss Sergio Marchionne more eager to sell, that prize may trump memories of previous car deals gone wrong.

ITV boss picks prime time to duck out

3 May 2017

Adam Crozier is leaving the UK’s largest free-to-air TV firm after seven years as CEO. His strategy of building up ITV’s production arm has been vindicated, but the vulnerability of ad revenue and the rise of digital giants like Netflix and Amazon will vex his successor.

Barclays chief learns silence is golden

2 May 2017

Jes Staley vouched for his brother-in-law in a spat with buyout group KKR, a client of the bank. Helping out friends is a good quality in a human being, and a boss. A CEO’s job, though, is to keep a clear line between life and work. Investors have reason to expect it.

Cheap boss is a luxury Bovis can’t afford

2 May 2017

The troubled UK homebuilder's investors approved a hefty pay package for its new boss. He could earn over 100 times the average UK construction worker, up from 76 times for his predecessor. A politically incorrect salary is the price Bovis pays for a much-needed turnaround.

AllianceBernstein shakeup sends active sell signal

1 May 2017

The firing of CEO Peter Kraus is the latest wakeup call for Wall Street stock pickers. Diversification efforts at the AXA-controlled firm failed to offset a long decline in its once-potent equities business. The upheaval suggests other active managers also have nowhere to hide.

Arconic takes battle of letters to Elliott

24 Apr 2017

The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.

Markets are wary of new blot on Japan Inc’s image

21 Apr 2017

Fujifilm has discovered dodgy accounting in its Kiwi unit. It is merely a $200 mln flub. But investor anxiety is understandable. What looked like a manageable accounting problem at Toshiba spiralled out of control. The photocopier-maker's mediocre governance is unhelpful too.

Belated O’Reilly exit shows Fox still on back foot

19 Apr 2017

The U.S. cable channel's star anchor is out after a catalog of sexual-harassment allegations prompted advertiser boycotts and protests. The channel's chief architect, Roger Ailes, was booted amid a similar scandal nine months ago. Rupert Murdoch's empire is changing only slowly.

Credit Suisse pay retreat puts chairman on spot

18 Apr 2017

The Swiss bank has bowed to investor pressure by proposing cuts to 2016 bonuses awarded last month and a cap on payouts for this year. New say-on-pay rules necessitated the climbdown. The episode shows an embarrassing lack of foresight by the board and Chairman Urs Rohner.

Activism prods GAM in right direction

18 Apr 2017

The Swiss hedge fund group will review compensation and cap its CEO’s pay because of pressure from investor RBR. The activist’s more disruptive plans may not win backing from other investors. But it can claim credit for forcing change in an industry resistant to shakeups.

Arconic CEO’s foolishness saves its board, for now

17 Apr 2017

Klaus Kleinfeld's unauthorized contact with Elliott Management in the midst of a proxy battle gave directors an easy excuse to let the poor-performing boss go. The affair, though, underscores the hedge fund's argument that the board bears much of the burden for the firm's woes.

Viewsroom: United joins corporate culture chaos

13 Apr 2017

Taking three days to offer a basic apology to the passenger dragged off a flight suggests deeper problems at the U.S. airline. Poor leadership and processes took a toll on Wells Fargo and Toshiba, too. Executives and boards ignore the lessons of cultural failures at their peril.

Active boards needn’t fear activist investors

12 Apr 2017

Dulux paint maker Akzo Nobel wants to stymie a vote on whether its chairman should go, after he rebuffed a $24 bln bid from rival PPG. That makes it look like the company is trying to stifle debate. While activists can overplay their hand, good managers still have the advantage.