Management & Leadership

Howard Schultz’s D.C. ambition may burn Starbucks

28 Jan 2019

The former coffee chain chief is mulling a White House run. Democrats worried that would help President Donald Trump called for a Starbucks boycott. Schultz’s pro-China views could help sales there, but that’s one more reason his candidacy could backfire on the firm’s homefront.

Chinese markets may wait longer for bold changes

28 Jan 2019

The head of the nation’s securities regulator was replaced over the weekend. Liu Shiyu was more pragmatic than ambitious, an approach that achieved mixed results. His successor, ICBC Chairman Yi Huiman, hardly seems like the type to take big steps like reforming the IPO process.

Downbeat Davos is still short on introspection

25 Jan 2019

Corporate and political leaders in the Swiss resort fretted about slowing economies, angry citizens, and clashes over technology. The gloom contrasted with last year’s misplaced optimism. Yet delegates remain bafflingly confident about their ability to predict what’s next.

BlueMountain is tardy with PG&E activism

24 Jan 2019

The hedge fund firm wants to oust the California utility’s directors, who are heading toward bankruptcy. It has a point: The hit from wildfires is not yet defined, and PG&E has stumbled in other ways. But BlueMountain is running out of time to rouse bigger, longer-term owners.

Hadas: Larry Fink can’t reshape capitalism

24 Jan 2019

The BlackRock boss wants big firms to think long term and balance the interests of all stakeholders. That’s noble, but passive investors are poor strategic guides, while active fund managers have other priorities. Also, BlackRock's profit margins and Fink’s pay are bad examples.

Ghosn successors may further strain Nissan ties

24 Jan 2019

Renault has well-qualified successors lined up to replace its former CEO and chair, who resigned. They have the French state’s implicit backing. The political association could, however, raise hackles at its Japanese partner, making it harder to resolve the crisis in the alliance.

Pernod Ricard takes baby step towards Elliott

24 Jan 2019

The French spirits maker has named a lead independent director. The increased focus on corporate governance is a welcome start and one of the demands of the activist investor. More radical changes and cost cuts will be needed to close its operating margin gap with rival Diageo.

WeWork offers glimpse of conflicts to come

23 Jan 2019

The shared-office upstart and potential IPO candidate rents buildings part-owned by its co-founder and CEO. Private-company trends arguably encourage such blurred lines, but public investors tend to distrust them. It’s another reason to doubt WeWork’s high-rise valuation.

Patisserie Valerie has a way out of collapse

23 Jan 2019

The cake chain called in administrators KPMG, but buyers have expressed interest. To make the numbers stack up, the acquirer would likely wipe out most of the unsecured creditors, including chairman Luke Johnson. If this happens, the battered baker could yet have a future.

Ford’s real reveal adds pressure on Jim Hackett

22 Jan 2019

The CEO’s ho-hum VW alliance made the carmaker the talk of a sluggish Detroit auto show. But Ford also disclosed that trucks and vans generate 135 pct of earnings. That highlights the need for speedier fixes to other, sputtering units – or a full merger that Hackett rejects.

New Jupiter CEO’s challenge is to fix niche model

22 Jan 2019

The $55 bln fund manager hired Andrew Formica as its new boss after a year of client departures and near 50 pct stock fall. It doesn’t help that it depends on fickle retail investors, in Brexit-torn Britain. Finding more institutional clients is a priority, but will take time.

Renault-Nissan saga will eventually favour France

21 Jan 2019

Governance changes on the Japanese side may reduce its French partner’s board power. Yet Renault’s 43 pct stake is its trump card, and Nissan’s moves to skirt it are likely to fail. It’ll take time, but Paris should one day get what it wants: closer integration and maybe a deal.

Context makes Santander’s Orcel fail even worse

18 Jan 2019

The Spanish bank expected UBS to honour a portion of its would-be CEO’s deferred pay. But recent executive moves at Deutsche Bank and Barclays saw new hires compensated in full. Andrea Orcel’s acceptance of a cut was a concession – making it all the odder Santander backed out.

Telecom Italia’s new boss needs some quick wins

18 Jan 2019

The Italian telco’s shares have dived after a profit warning. New CEO Luigi Gubitosi can stop the rot by listing its fixed network, but that path is slow and uncertain. A quicker route to credibility lies in selling stakes in choice assets like Inwit and the Brazil business.

JPMorgan bankers win Wall Street pay game

17 Jan 2019

Jamie Dimon’s firm is the only one to increase average compensation for investment bankers and traders in 2018, boosting it more than revenue rose. Jefferies still pays the most, but it’s less generous than it was. Goldman and Morgan Stanley have the mix just right.

Next Premier League CEO will start one goal behind

17 Jan 2019

A second candidate refused English soccer’s top job. It’s a tough role since Sky and BT are loath to keep bankrolling the sport, Amazon is sitting on the sidelines and rowdy soccer-club chairmen have to be tackled. Whoever takes the job will know the league’s glory days are past.

Reckitt CEO leaves successor with big headaches

16 Jan 2019

Rakesh Kapoor will leave the Nurofen maker after eight years. The stock has soared in his tenure, but the exit comes after a series of mishaps, weak sales growth, and a controversial acquisition. The successor will also have to decide whether to proceed with a complex breakup.

Orcel U-turn leaves Santander with reddest face

15 Jan 2019

The Spanish bank backed out of appointing Andrea Orcel as chief executive after balking at the former UBS executive’s pay package. The Italian is left without a job, and the Swiss lender has embarrassed its client. Santander Chairman Ana Botin, though, looks rash and naive.

JAB departure is sign to halt deal binge

15 Jan 2019

Chairman Bart Becht unexpectedly retired from the Krispy Kreme owner after swallowing several chunky acquisitions. Rising debt and the declining value of investments like Coty raise questions about JAB’s model. The remaining partners need a break before returning to the table.

BlackRock is too passive on diversity goal

10 Jan 2019

The latest top-level promotion suggests a Mark or a Rob will succeed boss Larry Fink. The $6 trln asset manager aims to have women in 30 pct of its most senior jobs by 2020. For now, it’s falling far short of that. It’s a case where good stewardship best starts at home.