Management & Leadership

Capital Calls: 3M settles again

29 Aug 2023

Concise views on global finance: The industrial conglomerate has followed a $12.5 bln agreement over long-lasting chemicals known as PFAS with a $6 bln deal to resolve one of the largest mass torts in U.S. history. A portion of it, however, comes in stock.

Fortescue’s biggest problem sits at the top

28 Aug 2023

The $41 bln Australian iron ore miner is parting ways with CEO Fiona Hick after six months. Hers is the latest in a slew of senior departures that reflect poorly on founder and chair Andrew Forrest. Shareholders can accept he’s becoming a liability, push for his removal, or sell.

UK leads Europe… in lack of boss pay restraint

25 Aug 2023

British CEOs at top listed groups got a 16% pay hike last year. Yet bosses’ salaries stagnated in France and fell 8% in Germany. Different growth paces partly explain the gap. But UK workers will struggle to take seriously policymakers’ calls for wage restraint to curb inflation.

Republican hopefuls’ deficit goals are all talk

24 Aug 2023

Conservatives vying for the Republican nomination vowed to slash the deficit in a debate. After years of spending under conservative leadership, it’s a throwback. Yet tax cuts and other costly projects are still key talking points. Worsened US finances make the agenda impossible.

Telecom Italia debt legacy outlasts its initiator

22 Aug 2023

Two decades after the Italian telco’s landmark leveraged takeover its architect, Roberto Colaninno, has passed away. His bold acquisition ended up saddling the ex-monopolist with a huge debt pile. A KKR-led deal, blessed by Rome, may finally end the sorry saga.

PayPal would slot well in a different wallet

15 Aug 2023

As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Capital Calls: Exor/Philips

14 Aug 2023

Concise views on global finance: The Agnelli family is making a well-timed bet on the troubled 18 bln euro conglomerate that makes everything from toothbrushes to defibrillators.

Altice’s beaten-up debt is only a bet for the bold

8 Aug 2023

Patrick Drahi’s telco empire faces a funding crunch, with $60 bln of debt coming due by 2030. He must pull off a tough turnaround in France and sell assets, a tricky task made even harder by a corruption probe. Even with current high yields, Altice debt is a risky punt on Drahi.

Acquisitive CEO’s pay push belongs in scrap heap

7 Aug 2023

After beating back unhappy shareholders to complete a $7 bln junkyard deal, RB Global boss Ann Fandozzi sought to accelerate her equity grants. When the board said no, she apparently quit. It’s a welcome case of directors swinging the wrecking ball on runaway CEO rewards.

PayPal pays price for prolonged CEO hunt

3 Aug 2023

Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.

Capital Calls: Uber’s road trip to redemption

1 Aug 2023

Concise views on global finance: The $95 bln ride-sharing firm notched its first operating profit and more than doubled free cash flow, but its valuation is lagging.

Capital Calls: Sequoia, Heineken, Moneyball

31 Jul 2023

Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.

Capital Calls: Bank of Japan, StanChart

28 Jul 2023

Concise views on global finance: Governor Kazuo Ueda shook markets by introducing a more flexible approach to controlling government bond yields, but he can easily retreat if inflation drops. Meanwhile, Bill Winters’ lender is improving but the heavy lifting is far from over.

Shell may as well try green plug for valuation gap

27 Jul 2023

The $204 bln group’s shares have outperformed US rivals since it flagged a renewed focus on oil, but still lag Chevron and Exxon Mobil. New boss Wael Sawan could try to close the gap by listing his green energy bits. It’s not certain to work, but is better than more buybacks.

Barclays CEO fiddles while valuation droops

27 Jul 2023

Despite earning adequate returns, the $32 bln UK bank has long traded at a big discount to rivals. Boss C. S. Venkat’s plan so far boils down to more of the same. Without clearer targets to move capital out of investment banking, the shares risk remaining stuck in the doldrums.

Capital Calls: LVMH’s US dip, Rolls-Royce revival

26 Jul 2023

Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.

Government’s NatWest meddling crosses risky line

26 Jul 2023

The UK bank ditched CEO Alison Rose hours after backing her, amid pressure from its 39% state shareholder. It’s right for Rose to go. But voters may now wonder why politicians can’t also intervene in setting mortgage rates, and NatWest may find it hard to find a top replacement.

Royal Mail owner may have a breakup on the way

20 Jul 2023

Parent company IDS chose international-parcels boss Martin Seidenberg as its new CEO. The struggling UK unit doesn’t show up in the near-$3.5 bln group’s share price. But Seidenberg has a window to fix it. If that works, he could boost value by splitting the company in two.

Capital Calls: Netflix, Thailand

20 Jul 2023

Concise views on global finance: The streaming giant warned its revenue will fall short of Wall Street’s expectations; a court’s move to suspend the leader of the election-winning Move Forward Party as a lawmaker raises the stakes in the underperforming $500 bln economy.