Management & Leadership

Being Jamie Dimon just became less fun

17 May 2022

Over two-thirds of JPMorgan investors rejected the CEO’s pay package, the worst rebuke at a big U.S. bank in a decade. That won’t hit Dimon in the wallet, and there’s no sign shareholders want him gone. But his bully pulpit, like his bank, is smaller than it was a year ago.

Unlimited vacation is a classic Goldman trade

17 May 2022

Goldman’s offer of unchecked time off for senior partners, and more vacation days for the rest, has some sincere aspects. But employees will still have strong incentives to work as hard as possible, and harder. As a rule, Goldman rarely ends up on the wrong end of a transaction.

Twitter brinkmanship favors Musk exit for a price

13 May 2022

The Tesla boss is worried about well-known erroneous user figures. The company appears to be preparing a defense if it were to stay independent. Both parties need to act like they want a deal, and Twitter needs it more. But Musk can probably convince Twitter to call off the ball.

Vodafone’s deal zeal is a risk factor

12 May 2022

The telecoms group may combine its UK business with smaller rival Three, owned by Hong Kong’s CK Hutchison. Its 39 bln pound debt pile makes a joint venture more likely than an outright purchase. CEO Nick Read’s eagerness to hook up means he may not secure the best deal possible.

St-Gobain activist hits right nails at wrong time

12 May 2022

Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show.

Chelsea buyer will struggle in financial league

9 May 2022

A group led by LA Dodgers owner Todd Boehly and U.S. buyout firm Clearlake will pay $3 bln for the UK soccer club. Unlike current owner Roman Abramovich, they’ll be eyeing a return on their investment. Yet $2 bln of pledged spending, including a new stadium, make that tricky.

Capital Calls: AB InBev

5 May 2022

Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.

Anti-Americanism is blinding Chinese policy

5 May 2022

President Xi Jinping’s obsession with surpassing his country’s top trading partner is distorting his approach to growth and the pandemic. Bad debts, crackdowns and Covid-zero could slow China’s push to double output by 2035 and become the world’s largest economy.

Capital Calls: Uber vs. Lyft, GE executive pay

4 May 2022

Concise views on global finance: Shares in both ride-hailing firms fell on Wednesday despite Uber signaling it doesn’t have to invest to attract drivers like its smaller rival. And only two-thirds of investors backed CEO Larry Culp’s compensation, even after a $10 mln bonus cut.

Adler gifts German watchdog a shot at redemption

4 May 2022

BaFin’s probe into the property group has gained added weight after KPMG’s refusal to approve its 2021 accounts. The mess is an important test for new boss Mark Branson after the regulator’s Wirecard failings. Adler’s patchy disclosure and shaky governance make it an easy target.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

Capital Calls: Amazon and consumers

29 Apr 2022

Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.

How to return control of companies to their owners

28 Apr 2022

Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.

Just Eat investors are stuck with its founder

27 Apr 2022

Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.

Deutsche can leave Credit Suisse in the dust

27 Apr 2022

Europe’s erstwhile bank basket case is now valued by investors on the same multiple of book value as the Swiss wealth manager. Rate hikes and a debt-trading boom will play to its strengths. Meanwhile, Credit Suisse’s weak capital ratio and slow growth will keep its shares gloomy.

Capital Calls: GM electrifies executives’ pay

27 Apr 2022

Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.

UK fund manager picks canny time to do right thing

26 Apr 2022

The $10 bln Schroders is ditching its non-voting shares. A 37% discount to the voting stock helps smooth a deal without its dominant family losing out too much either. It’s a timely corrective to UK Chancellor Rishi Sunak’s efforts to lure more dual-share structures to London.

Capital Calls: Stellantis CEO’s outsize salary

14 Apr 2022

Concise views on global finance: The carmaker’s shareholders opposed Carlos Tavares’s 59 mln euro pay package, but he’s going to receive it anyway.

Capital Calls: GoTo debuts in smart fashion

11 Apr 2022

Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.

Capital Calls: Credit Agricole’s Italian job

8 Apr 2022

Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.