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Management & Leadership

Review: Michael Ovitz’s Hollywood adventure

5 Oct 2018

The super-agent is out with an autobiography about life as a dealmaker and art collector, as well as a short-lived stint as the Disney CEO’s heir apparent. Like Tinseltown, it’s long on bravado and short on self-awareness. But his time at the Mouse House is a cautionary tale.

California boardroom gender quota is useful nudge

1 Oct 2018

A quarter of public firms based in the state have no women directors. Now they’ll have to change that, as some big investors already demand. Similar rules in Norway, say, have not obviously trickled down. But that may take decades – and board balance is a valid goal in itself.

Pfizer takes Hippocratic approach to governance

1 Oct 2018

The drugmaker has split its CEO and chairman roles, but undermined the impact by keeping boss Ian Read on as an executive chairman. Fortunately the $258 bln drugmaker’s pipeline puts it on a sound footing. Like much about Read’s strategy, at least the reshuffle does no harm.

GE brings life and meaning to the word culpability

1 Oct 2018

The stumbling industrial group replaced its newish CEO with former Danaher boss Larry Culp, while taking a $23 bln hit on its power unit. By holding John Flannery accountable and expunging his predecessor’s legacy of dealmaking, GE’s board has shown welcome, if belated, spine.

Orcel exit tests UBS’s Goldilocks investment bank

1 Oct 2018

Like the girl in the fairy tale, the Swiss lender wants a capital markets arm that is just the right size: not too big to weigh on its valuation, but not too small to compete. Departing chief Andrea Orcel managed the balancing act. His successors have to prove they can too.

Musk suit could uncover Tesla’s true value

27 Sep 2018

The U.S. securities regulator wants Elon Musk removed as CEO and director, saying he lied about a plan to take the $53 bln electric-car maker private. His exit would leave Tesla much depleted, but also more rationally valued – if it can motor past a looming liquidity crunch.

BBVA handover is slow waltz to Santander’s tango

27 Sep 2018

The Spanish bank has said CEO Carlos Torres will succeed Francisco Gonzalez as executive chairman. The orderly transition stands in contrast to Santander’s flashy punt on UBS investment banker Andrea Orcel. A crisis in Turkey will put his relevant experience to the test.

Alibaba at last tackles taboo governance topics

27 Sep 2018

The Chinese online titan published its first ESG report, spotlighting awkward partnership and mainland ownership structures. It's a big step given that such thorny matters usually get short shrift. Accountability questions remain, but Alibaba is heading in the right direction.

Judgment, nerve and luck keep Merck CEO in job

26 Sep 2018

The drug maker has waived its retirement age so Kenneth Frazier can stay on as boss. He has justified the move by prioritizing R&D, fighting drug lawsuits, and making smart hires. The chance-filled path of hit cancer drug Keytruda also helped. And 65 is no longer a sell-by date.

Orcel may not need deals to keep Ana Botin happy

26 Sep 2018

The Santander chair wants her new CEO to double the bank’s share price. Andrea Orcel’s background implies he would try to do so via a blockbuster deal. But if he can increase the top line by 4.5 percent annually by 2023 and keep costs in check, he could get there organically.

Daimler’s new CEO to drive without steering wheel

26 Sep 2018

Ola Kaellenius, Mercedes’ head of development, will in 2019 replace Dieter Zetsche. The chief executive of 13 years will return as chairman in 2021. The risk is that Kaellenius will be hamstrung in the interim. The carmaker can ill afford to be stuck in neutral for two years.

Santander puts relationships first with Orcel hire

25 Sep 2018

The Spanish financial giant has appointed UBS investment banking head Andrea Orcel as its new CEO. The Italian is a long-time adviser but has no experience of running a retail lender. That matters less than his rapport with Executive Chair Ana Botin, who remains firmly in charge.

UK shares-for-workers plan is appealing but flawed

24 Sep 2018

Forcing companies to transfer 10 pct of their equity to employees, as the Labour party proposes, seems a benign form of socialism. But capping dividends limits the benefits of spreading wealth. And handing the surplus to the government means it’s really a disguised tax hike.

A message for HSBC’s disgruntled rainmakers

21 Sep 2018

An anonymous letter purportedly sent by “extremely concerned” employees accuses the lender’s investment banking division of lacking credibility and offering “rewards for persistent failure”. Breakingviews imagines CEO John Flint’s reply to the self-proclaimed whistleblowers.

Danske can deflect pitchforks with bonus clawbacks

21 Sep 2018

CEO Thomas Borgen may have resigned after the Danish bank’s money-laundering scandal. But if he’s allowed to keep bonuses awarded during the time in question, Danske’s reputation will fall further. Its board has powers to claw back unjustified variable pay – it should use them.

Merrill Lynch deal a qualified success for BofA

20 Sep 2018

The bank bought the Thundering Herd in a hurry in the depths of the 2008 crisis. Merrill’s retail brokerage has worked out well. But the M&A and equity franchises have faded under the BofA brand. The unit’s new boss, Matthew Koder, would need something special to change that.

CalPERS has good reason to recruit from Beijing

20 Sep 2018

The $350 bln pension fund may hire a manager of China’s forex reserves as its next investment boss. His China knowledge would be a plus. Nativists may howl. But Ben Meng trained on Wall Street and ran asset allocation at CalPERS. That’s what makes him a good pick for the job.

Jack Ma’s American dream clashes with China First

20 Sep 2018

Alibaba’s retiring founder rescinded a promise to create 1 mln U.S. jobs. He blamed tariff tensions, but Kroger and other foreign brands have not had a level playing field on the global Tmall site. Unless that changes, the company will be more of a trade problem than solution.

Danske mea culpa will only partly calm U.S. wrath

19 Sep 2018

The Danish bank’s CEO has quit after an internal report said it ignored 200 bln euros in potentially suspect Estonian payments. With the threat of a hefty U.S. fine, pre-emptive head-rolling makes sense. Danske’s problem is it still doesn’t know how bad the problem really is.