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Management & Leadership

Ashley’s retail foray more desperate than inspired

27 Mar 2019

Sports Direct, controlled by Mike Ashley, may pay 61 mln pounds for struggling high street chain Debenhams. But taking on its heavy debt and leases, or restructuring them later, would be tricky. Ashley’s best bet may be to agitate for a higher payoff for his 30 percent stake.

Deutsche Bank bonus pay is excessive and ill-timed

22 Mar 2019

The German lender has nearly doubled management pay to 56 million euros due to higher variable pay. The group bonus pool shrank but is more than six times 2018 profit. If unions were irked by job cuts that a proposed merger with Commerzbank would bring, this will incense them.

AB InBev shareholders get more smoke, less 3G

20 Mar 2019

The brewer nominated former Altria CEO Martin Barrington as chairman. Though he’s not linked to the Brazilian investment firm that jointly controls the $143 bln company, the Marlboro maker is a shareholder. Investors who want a more radical shake-up have an opportunity to say no.

Citic and CLSA will survive boss departure

20 Mar 2019

The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.

Newell needs a breakup more than a CEO

15 Mar 2019

Boss Michael Polk is retiring after an eight-year orgy of wheeling and dealing. His 2016 Jarden purchase incinerated $10 bln of shareholder value and saddled the group with debt. He has stepped up asset sales under pressure from Carl Icahn, but a full breakup would make more sense.

Volkswagen CEO’s Nazi pun constitutes peak gaffe

15 Mar 2019

Herbert Diess apologised for evoking a Third Reich slogan via the pun “EBIT macht frei”. Given the gravity of the subject and VW’s dark history, it’s hard to imagine a bigger self-own. In a competitive field of foot-in-mouth bosses, Diess has effortlessly claimed pole position.

Shell CEO’s bonus problem less size than length

14 Mar 2019

Ben van Beurden’s 20 million euro pay for 2018 is more than double the previous year. Given Shell’s share performance over the last three years, a bumper payout is logical. Yet holding shares for just three years would allow him to cash out before any climate crunch hits Big Oil.

Carlos Slim has upper hand in Spain property fight

14 Mar 2019

Hedge fund Polygon reckons Realia, controlled by the Mexican tycoon, uses lowball land valuations and raised capital it doesn’t need. The 800 mln euro company’s response is unconvincing. Yet unless regulators force it to change, Slim could increase his stake at a lowball price.

Standard Life Aberdeen board rejig is just a start

13 Mar 2019

The embattled fund manager named Keith Skeoch as sole boss, ending its controversial co-CEO structure. But Martin Gilbert stays on as senior executive and vice chairman. With its 552 bln pound asset base still shrinking and the dividend insecure, governance remains suboptimal.

Outside eyes can quell EssilorLuxottica board row

13 Mar 2019

Top shareholder Leonardo Del Vecchio wants protégé Francesco Milleri to run the eyeglasses juggernaut. But he lacks both international experience and director support. A comprehensive, global search would turn up a better boss for the $50 bln group as it faces new challenges.

Renault-Nissan love-in swerves main bumps in road

12 Mar 2019

The French carmaker has agreed its chairman will no longer chair its Japanese partner. That’s a step forward from the Carlos Ghosn era. But mutual talk of equality is no substitute for solving the alliance’s fundamental problems – not least its suboptimal cross-shareholdings.

Hong Kong bank showcases the XX factor

8 Mar 2019

As International Women’s Day brings more sad stats about corporate diversity, $46 bln Hang Seng Bank can stand proud. Its shares have outperformed under three consecutive female CEOs and a cohort of female directors. It sets a powerful example for companies worldwide to follow.

Kraft Heinz new recipe could start with the board

6 Mar 2019

The $40 bln ketchup maker’s board is stocked with representatives of its main shareholders and has plenty of consumer expertise. But Kraft Heinz has missed a trick. Its rivals have more flavor from other industries. Having disappointed investors, there’s room for fresh insights.

Goudet exit shows AB InBev model’s last dregs

6 Mar 2019

Chair Olivier Goudet is leaving the brewer because of conflicts with his role at JAB. Both groups share a taste for buying assets, and cutting costs. Yet the tension with JAB’s Snapple or Dr Pepper brands shows the strategy’s limits, and AB InBev’s need to go beyond alcohol.

Mario Draghi is boxed into being generous to banks

5 Mar 2019

The European Central Bank boss is expected to announce more cheap loans in the coming months. New regulations may otherwise cause a credit crunch just as the euro zone economy is slowing. Monetary policymakers will have little choice but to paper over a two-tier banking system.

Disney’s CEO pay sequel outperforms the original

4 Mar 2019

It took a shareholder revolt last March, but the board has canned some $13 mln extra a year for Bob Iger after the Fox deal closes. Incentivizing executives for dealmaking is bad practice. Ditching it will mollify investors, even though Iger is still minting a fortune.

Aviva’s new CEO is a vote against restructuring

4 Mar 2019

The UK insurer has appointed veteran Maurice Tulloch as chief executive. Aviva is overleveraged and undervalued, and selling its international operations offers a potential fix. But given doing so is hardly a no-brainer, an insider CEO may prefer more of the same.

Time for Ted Baker to embrace overseas offers

4 Mar 2019

The UK fashion group’s founder Ray Kelvin has left amid an ongoing probe relating to his hugging of colleagues. With the shares down a third in a year and Kelvin still holding 35 pct, Ted Baker could be in play. Chinese luxury players eyeing mid-market brands may come calling.

AT&T uncovers hidden costs of media deals

1 Mar 2019

HBO boss Richard Plepler is leaving not even a year after the telco acquired parent Time Warner for $85 bln. The “Game of Thrones” network is a jewel and Plepler is a talent magnet. People can be replaced. It just makes an expensive deal even more so.