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Management & Leadership

The Gap stitches together an M&A opportunity

28 Feb 2019

The $10 bln clothier is spinning out faster-growing Old Navy from its other brands, saying they serve different customers. It’s not like the struggling retail sector needs another listed company. But it might not have one for long, if the more successful arm can attract a buyer.

Hadas: The CEO guide to corporate old age

27 Feb 2019

So far this century, real revenue at big U.S.-listed companies is up only about half as much as domestic GDP. Last week’s Kraft Heinz writedown suggests that both bosses and shareholders often harbour unrealistic hopes of doing better. Lower expectations would help everyone.

Nissan would be better off with its own chairman

21 Feb 2019

A panel enlisted by the Japanese carmaker opposes replicating the corporate governance model used under Carlos Ghosn. Uniting with Renault makes sense in the long run, but for now two separate board chiefs will be more effective at cleaning house and rebalancing the relationship.

If Chanel were a normal company, it’d be in play

19 Feb 2019

The Parisian fashion house’s designer for 36 years, Karl Lagerfeld, has now died at 85. Its co-owners, two brothers, are approaching retirement. LVMH boss Bernard Arnault has the firepower to make a $40 bln purchase. Bankers may be salivating, but a deal looks a long way off.

Vincent Bolloré shores up Vivendi activist defence

15 Feb 2019

The French billionaire treats the media group like a family hedge fund. The latest instance is a new share buyback that allows the tycoon to boost his control without personally coughing up a penny. Any activist that wants to improve governance will have to move quickly.

Ryanair CEO’s 100 mln euro bonus is within reach

15 Feb 2019

That’s how much Michael O’Leary stands to gain if he doubles the budget airline’s net profit or share price by 2024. Falling fares and strikes make the target look a stretch. But if Ryanair hits its 200 mln passenger goal while keeping costs down, the sky’s the limit for rewards.

P&G offers roadmap for new Colgate CEO

12 Feb 2019

Noel Wallace takes over with the $57 bln soap and toothpaste maker a stock-market laggard in recent years. Though he’s a Colgate veteran, he needs fresh ideas to boost market share. Activist Nelson Peltz has stirred P&G into action. Wallace could follow his competitor’s lead.

Bank of Italy attack shows growing radical bravado

12 Feb 2019

Government leaders vowed to overhaul the central bank’s board, citing past bank failures. The intervention looks like political swagger as rivalry within the League and 5-Star coalition gets fiercer. Existing rules should shield the regulator, but other institutions are at risk.

Nissan’s post-Ghosn journey starts in reverse

12 Feb 2019

The $33 bln Japanese carmaker cut its operating profit forecast in the first results posted since ousting Chairman Carlos Ghosn. Declining profitability underscores the importance of deeper cost-sharing with partner Renault. But alliance tensions suggest pessimism is warranted.

Just Eat could prove a tasty M&A morsel

11 Feb 2019

The 4.9 bln pound UK food-delivery group is leaderless and faces an activist investor. It could keep investing in its delivery services to fend off Uber, but peers like Takeaway.com and Delivery Hero are doing the same. Just Eat’s cut-price valuation could force the board’s hand.

Apple departure points to wider mystery

6 Feb 2019

Retail chief Angela Ahrendts was one of the firm’s best-paid executives. Was she worth it? It’s impossible to know, because Apple doesn’t say how its stores are doing. It’s one of several important data points the company holds back. Opacity weighs on Apple’s valuation.

Hyperactive Elliott leaves Arconic in disarray

6 Feb 2019

The parts maker has a new CEO - its fourth since Paul Singer’s hedge fund first invested in 2015. The activist pushed out ex-boss Klaus Kleinfeld, helped pick most directors and backed a failed buyout by Apollo. Its minority stake has made it a force for agitation, not stability.

Trump World Bank pick would be fox in the henhouse

5 Feb 2019

The U.S. president is set to nominate David Malpass to lead the global lender. He’s skeptical of multilateralism and of closer ties to China. A challenger for the job – usually America’s choice – hasn’t yet emerged. Some World Bank priorities, like climate change, could fade.

Barclays’ activist investor faces moment of truth

5 Feb 2019

Edward Bramson has nominated himself to join the UK bank’s board. Barclays shares are down by a quarter since he disclosed a 5.5 pct stake; his listed vehicle has lost more. But shifting the lender’s strategy requires winning over regulators and directors as well as shareholders.

Bill Gross sends last missive on bonds – and fees

4 Feb 2019

The Pimco co-founder is leaving Janus Henderson, where he managed money in less-than-stellar style since 2014. He’s entitled to retire, but the move follows the end of a decades-long bull run for bonds and underscores the decline of funds which charge too much for their returns.

New-look Ryanair follows familiar flight path

4 Feb 2019

The budget airline will split into four units overseen by CEO Michael O’Leary. The changes, including a replacement for Chairman David Bonderman, look encouraging. But given that O’Leary will remain in charge and large-scale acquisitions are unlikely, they are mostly cosmetic.

Deutsche Bank reprieve is only temporary

1 Feb 2019

The German lender’s first net annual profit in four years and plans for bigger cost cuts are welcome. But revenue fell, partly because its trading business did worse than U.S. peers in the final quarter. CEO Christian Sewing needs top-line growth to deliver even mediocre returns.

Tesla CFO exit news is flashback to bad old days

31 Jan 2019

The electric-car maker’s new board chair and directors may be helping to tone down CEO Elon Musk’s overwrought promises and tweets. But his decision to wait until the end of an earnings call to disclose that Tesla’s finance chief is leaving shows Musk remains firmly at the wheel.

Nomura’s messy quarter begs for faster tidy-up

31 Jan 2019

An estimated $120 mln fee from SoftBank bolstered the broker’s earnings but failed to offset abysmal performance across wholesale, retail and asset management divisions. Job cuts and improved incentives are steps in the right direction, but thin padding against tough markets.