Management & Leadership

Generali CEO’s bold plan may just save his neck

15 Dec 2021

Philippe Donnet is pledging to grow earnings per share by up to 8% through 2024, ahead of Allianz, and to return capital. It won’t soothe rebel shareholders including Leonardo Del Vecchio, who want him out. But it ups the chance other investors will stick with the status quo.

Elliott picks low-hanging fruit with builder punt

15 Dec 2021

After a bruising battle at utility SSE, the activist is targeting British housebuilder Taylor Wimpey. Its demands are modest and its criticisms a little overdone. Still, the $8 bln company’s lacklustre shares mean other investors should back Elliott’s call for an external CEO.

Capital Calls: 3M is a banker’s idea of no fun

15 Dec 2021

Concise views on global finance: The industrial giant has paid investment bankers 95% less in fees than General Electric. The company may have a hard time getting Wall Street’s best advice, even though deals might not help it.

Toyota will send its hybrids to the breaker’s yard

14 Dec 2021

The $250 bln carmaker is dramatically increasing its electric ambitions after lagging for years. It could help defend its earnings multiple lead over Ford and GM. But Toyota still lobbies against tougher emissions standards. Powering down its hybrids will add carbon clarity.

Capital Calls: UBS, Pfizer, Peloton

13 Dec 2021

Concise views on global finance: An appeals court has reduced a penalty for the Swiss bank by 60% for tax wrongdoings; the U.S. pharma group is buying a drugmaker to bolster its post-pandemic growth options; real risks are a bigger threat to the bike-app company than fake ones.

Xi’s new year’s resolutions are hard balancing act

13 Dec 2021

China's president wants to tap the brakes on tech and other crackdowns in 2022. He's also softening his energy-transition stance while pushing for more infrastructure. Yet he plans no U-turns on property or how regions raise funds. Officials will be walking a tightrope to comply.

Review: There is no successor to “Succession”

10 Dec 2021

The HBO series about a fictional mogul and his adult children scheming to replace him is so good because it draws on real-life dynasties like the Murdochs. But those sprawling media empires are being dismantled. It’s hard to imagine Mark Zuckerberg inspiring similar drama.

Andrea Orcel’s moral victory weakens Ana Botin

10 Dec 2021

A court awarded the Italian banker 68 mln euros as compensation for Santander’s sloppy U-turn on making him its CEO. The Spanish bank will appeal. But the ruling vindicates Orcel’s decision to fight, while reviving doubts about Santander’s chair, and the rest of the board.

Europe’s phone firms line up for last tower dance

10 Dec 2021

Vodafone and Deutsche Telekom bosses both want to hook up their mast divisions with a partner. France’s Orange is also in the mix, having just completed an internal carveout. With its tower unit already listed, Vodafone has an advantage. An Orange tie-up is the simplest fit.

Fortescue unearths transition leadership challenge

10 Dec 2021

The Aussie miner’s CEO will step down, a year after Chairman Andrew Forrest unveiled his bold green-hydrogen plans. Straddling iron ore and new energy is no easy feat. Others trying to remake themselves for a new era also will wrestle with finding the right person for the job.

Andrea Orcel’s UniCredit shoots for the moon

9 Dec 2021

The new CEO wants to return a whopping 16 bln euros by 2024, some 60% of the Italian bank’s market cap. Such bold pledges will delight long-suffering investors. Buoyant European growth should help, but if the pandemic recovery falters, Orcel’s M&A instincts will start kicking in.

Nestlé’s $10 bln L’Oréal sale is a messy trim

8 Dec 2021

The food giant sold a 3% stake in the French cosmetics group, hanging onto 20%. It’s been a strong performer, but a full exit would make more sense for Nestlé’s shareholders. CEO Mark Schneider’s timidity may reflect a dearth of reasonably priced companies to spend the money on.

VW’s CEO soap opera is darker than Tesla’s

7 Dec 2021

Herbert Diess is likely to stay as the German carmaker’s boss but with wings clipped after a clash with unions. His ambitious battery plans make Volkswagen a more credible rival to Elon Musk’s firm. Unlike the Tesla founder’s antics, its leadership dramas reflect deep challenges.

Alibaba’s new CFO signals shifting priorities

6 Dec 2021

The Chinese e-commerce company, whose market value has halved to $300 bln this year, is replacing finance chief Maggie Wu. During her seven-year tenure, Alibaba successfully courted foreign investors. Successor Toby Xu’s experience suggests there will be a greater focus at home.

China property market faces more nationalisation

6 Dec 2021

Evergrande, the country’s most indebted developer, has admitted it might formally default. With $10 bln in property bonds maturing in January alone, officials are under pressure to keep the sector from collapsing. The most expedient solution is to put more housing in state hands.

Didi faces long and perilous journey to Hong Kong

3 Dec 2021

The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.

Legal challenge affirms logic of Nvidia mega-deal

3 Dec 2021

U.S. trustbusters are suing to block the chipmaker’s controversial Arm acquisition. A growing price tag, from $40 bln to about $75 bln, undermines the financial value. At least the FTC is, in a way, buttressing the strategic rationale of buying the Switzerland of semiconductors.

Viewsroom: Omicron hits, Dorsey quits

2 Dec 2021

As the world gets to grips with a new coronavirus variant, Swaha Pattanaik looks ahead to how Omicron could frustrate attempts to rein in rising prices. Meanwhile, Gina Chon watches Twitter say goodbye to founder Jack Dorsey and usher in a new, still-quirky governance setup.

Disney meets low bar with new chair

2 Dec 2021

Susan Arnold gave up her job at Carlyle and will succeed Bob Iger as chair of the $260 bln firm. That’s a step better than Twitter. But her 14-year tenure is well above average and edges up to Disney’s parameters. It suggests the media giant could have planned succession better.

Capital Calls: Volkswagen, Turkey

1 Dec 2021

Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.