Management & Leadership

Jes Staley’s “honest mistake” still hurts Barclays

10 Apr 2017

The UK bank's CEO will get a pay cut after trying twice to unmask a whistleblower. The regulator thinks bosses shouldn't have to go for honest errors – which Barclays says this was. But it doesn't say good things about internal processes – or Staley's knowledge of them.

Zara may end up bound by family ties

7 Apr 2017

The founder of Spain's Inditex, which owns the fashion chain, placed his stake in a holding company, ensuring his heirs keep control. It looks benign for investors, who have made handsome returns. The problem comes if future retail disruption calls for a break from tradition.

BP’s bonus rethink is still kind to Bob Dudley

6 Apr 2017

The British oil major has caved to shareholder pressure and cut 2016 pay for its chief executive by 40 pct. Dudley has cleaned up BP since the Gulf of Mexico spill. But his latest long-term incentive plan still positions him comfortably ahead of his domestic peer group.

Lowball bank pay targets are lesser of two evils

27 Mar 2017

Barclays and Standard Chartered's bosses will get bonuses even if their banks don't earn back their cost of equity. Unstretching targets, though, reflect the fact neither lender has said when it will start making an economic profit. Paying less won't bring that moment closer.

Credit Suisse CEO payout is undeserved

24 Mar 2017

The Swiss bank is awarding boss Tidjane Thiam $12 mln for 2016, despite its $2.7 bln loss and a potentially dilutive capital raise. Thiam has done well on costs and solvency. But whatever the board says, he initially mangled the bank's strategy and thus its reputation.

Deutsche Bank bonus payout is bigger than it seems

22 Mar 2017

The German lender said its 2016 variable compensation was almost 80 pct less than in 2015. But factor in 1.1 billion euros of “retention awards” and the cut looks less extreme. The need to avoid an exodus of key staff helps explain the gap between rhetoric and reality.

Tussle over Fed deputy suggests wider policy rift

20 Mar 2017

A clash between presidential economic adviser Gary Cohn and Treasury’s Steven Mnuchin is delaying the naming of a vice chair of supervision. Mnuchin’s refusal to reject protectionism at the G20 suggests a deeper split over trade. Goldman alums don’t guarantee policy coherence.

Aberdeen-StanLife offer thin gruel on two-CEO move

20 Mar 2017

The fund managers have spelled out how Chief Executives Keith Skeoch and Martin Gilbert will split the job after their planned merger. But it’s still a fudge, with too much room for discord. Judging by the share price, investors are giving the deal two thumbs down.

Piech exit only small step to VW governance revamp

20 Mar 2017

The 79-year-old patriarch may sell his stake in the carmaker to younger family members. The next generation should be keener on shareholder value than empire building. But while Ferdinand Piech’s vanity will be history, VW’s bigger burden - flawed governance - remains intact.

Colao trades one Vodafone risk for another

20 Mar 2017

The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.

Renault’s main risk is Ghosn exit – not emissions

16 Mar 2017

The carmaker’s shares lurched on reports of French authorities’ allegations of emissions cheating. Unless Renault’s protestations of innocence are bogus, the concerns look overblown. A far bigger problem for the group would come if boss Carlos Ghosn were to be shunted aside.

Glaxo boss pay cut is a false economy

15 Mar 2017

The pharmaceutical group will pay new Chief Executive Emma Walmsley a quarter less than predecessor Andrew Witty, on account of her inexperience. Laudably, GSK was responding to shareholder pressure. Yet the cost of inexperience could easily outweigh the salary savings.

New AIA boss can retain Tucker’s policies

13 Mar 2017

The Asian insurer has chosen continuity in promoting regional chief and industry veteran Ng Keng Hooi. Growth might not match the stellar run under outgoing boss Mark Tucker but, barring dividend tweaks and bolt-on deals, his successor need not change much. AIA is in good shape.

HSBC’s new chairman ticks the right boxes

13 Mar 2017

The emerging markets bank has picked AIA boss Mark Tucker to succeed Douglas Flint. He brings deep understanding of Asia, good contacts with regulators, and finance sector knowledge. As the first external chair in HSBC’s 152-year history, he will need all those skills – and more.

Bridgewater’s radical reality is a revolving door

1 Mar 2017

Ray Dalio is relinquishing management duties at the hedge-fund goliath to focus on investing. His co-CEO also stepped down after just 10 months on the job. The $160 bln firm promises radical transparency and truth. Investors may feel shortchanged on both counts.

Review: Steven Cohen’s enduring edge

24 Feb 2017

Sheelah Kolhatkar’s “Black Edge” is a compelling tale of the U.S. government’s decade-long failed attempt to charge the billionaire fund boss with insider trading. As Cohen prepares to open a new firm and politicians embrace deregulation, the epic struggle is clearly in the past.

Tesla investors shift into new cultish gear

22 Feb 2017

The $45 bln electric-car maker's latest results fail to help explain the huge recent jump in its share price. More calls for capital are likely, production targets are tough and the SolarCity deal remains a mystery. More than ever, owning Tesla means revering boss Elon Musk.

VW can regain trust with sweeping pay reform

22 Feb 2017

The troubled carmaker plans to overhaul its ill-designed executive pay scheme. This is an opportunity to start rebuilding shareholders’ confidence. Essential changes include turning managers into entrepreneurs, introducing pay clawbacks and giving investors more say on pay.

Trump’s Flynn scandal has many corporate analogues

14 Feb 2017

Like messes that roiled firms from Wells Fargo to Valeant, the furor over the national security adviser's misleading statements over Russia point to a common problem: the management style of the CEO. The commander in chief has much to learn from real public-company bosses.

Curing myopic CEOs requires playing long game

8 Feb 2017

A new McKinsey study finds that companies that focus too much on quarterly results badly underperform rivals with more distant horizons. It's just correlation not causality, but the research is a compelling start. Persuading investors might in time convince Corporate America.