Management & Leadership

Elliott flexes its two biggest muscles at Sempra

18 Sep 2018

The $32 bln utility agreed to add two new board members and says it will review a break-up. Meanwhile, Elliott’s lawyers won back a $275 mln fee from when Sempra bought Texas utility Oncor. Paul Singer’s fund specializes in persuasion and litigation. This time, both paid off.

Regulator’s exit throws Italy fresh market test

14 Sep 2018

The head of the country’s financial watchdog resigned after ruling parties criticised his continuing ties with the European Commission. Mario Nava was appointed by the previous government. His replacement will face a challenge to dispel doubts of political meddling.

Goldman Sachs trades diversity for diversification

13 Sep 2018

A reshuffle by boss-to-be David Solomon puts investment bankers in the three top jobs. It also shifts one of Wall Street’s few openly gay senior executives to a less visible role. But it also reflects Goldman’s changing earnings mix, and Solomon’s intent to make it more balanced.

Banks belatedly realise money laundering is bad

11 Sep 2018

ING’s finance director will leave after the bank’s illicit fund failings incurred a 775 million euro hit from Dutch prosecutors. In the past, miscreants have got away with paying fines. Now shareholders are pushing the issue as well as politicians, accountability is improving.

Musk takes a couple of toes off the pedal

10 Sep 2018

The $45 bln electric-car maker's CEO has promoted an insider to run the autos unit, among other changes, after "in-depth" talks with directors. An experienced outsider would have been better. Musk remains free to overpromise and underdeliver.

CBS cancels melodrama in favor of steady series

10 Sep 2018

Boss Les Moonves is out amid new allegations of sexual assault. A truce between controlling owner Shari Redstone and the $21 bln media firm makes way for better checks and balances. CBS needs Moonves less than it needs a spell of normality – and that’s now within reach.

Richemont’s board is as complex as its timepieces

10 Sep 2018

The $44 billion Swiss watchmaker appointed a CEO just two years after scrapping the role. But new boss Jérôme Lambert won’t lead Cartier and Van Cleef - brands that generate 80 percent of operating profit. Fuzzy governance will continue to weigh on the group’s value.

Tesla risk is Musk blowing smoke, not inhaling

7 Sep 2018

Model 3 sales may be speeding up. But Tesla’s stock and bonds slumped after another lawsuit, the exit of its top accountant and HR boss, and the CEO’s pot-smoking podcast appearance. It all makes Musk’s goals less convincing, and needed capital more costly to raise.

Credit Suisse ought to think about Thiam’s exit

7 Sep 2018

The boss of the Zurich-based lender has denied rumours he wants to run for president in his native Ivory Coast in 2020. Even so, completing most of the bank’s restructuring next year will be a natural exit point. Tidjane Thiam’s “long-term commitment” may last no longer than that.

CEO pay clawback is central to CBS board plotline

6 Sep 2018

Boss Les Moonves, currently under investigation for sexual harassment, may be negotiating an exit package. The $20 billion media group’s board could take back part of his golden parachute if he’s found to be culpable. It’s one way the directors can justify their presence.

Pimco finds finance role robots can’t yet play

5 Sep 2018

John Studzinski, a Blackstone consigliere and consummate networker, is joining the bond fund manager to help woo rich and powerful investors. Pimco, like its rivals, is investing in big data and machine learning, but hiring “Studs” shows the high-touch stuff still matters too.

Vodafone’s new CEO has sticks to repel activists

5 Sep 2018

The $57 bln telecom group’s sagging shares may have attracted Elliott’s attention. Newly-promoted Nick Read needs to show he can afford the pricey Liberty Global deal and still pay a fat dividend. Cost cuts and mobile-towers sales would soothe investors’ worries.

Bayer’s lowly valuation lacks positive catalyst

5 Sep 2018

The German drugs-to-seeds maker’s sales rose 9 pct in the second quarter, helped by its pricey acquisition of Monsanto. That deal is tarnished by lawsuits, while Bayer’s consumer and pharma units also face challenges. Though the bad news is priced in, the discount will persist.

WPP’s new boss skips honeymoon period

4 Sep 2018

Mark Read unveiled bad news on profitability and froze the dividend on his second day in the job. The $20 bln ad group will have to invest more in technology and unify its sprawling divisions while cutting debt. He may be forced to cut payouts to shareholders in the coming year.

Europe’s next bank cop faces fight on many fronts

3 Sep 2018

Daniele Nouy steps down as chair of the European Central Bank’s banking watchdog this year. Her successor will have to keep cleaning up bad debts and improving money-laundering controls. The bigger challenge, though, is addressing lenders’ chronic lack of profitability.

Britain is making a mess of replacing Mark Carney

3 Sep 2018

The Bank of England boss may extend his term for a second time, keeping him at the central bank beyond June 2019. That could offer comfort to investors worried about Brexit. But it would suggest the government is struggling to find a good successor. That’s a bad signal to send.

JD CEO’s arrest steps on governance landmine

3 Sep 2018

Richard Liu is being investigated for sexual misconduct in the United States. Super-voting stock gives him control of the $45 bln e-commerce firm; the board can't meet without him. Even if Liu is cleared, this raises questions about JD’s use of legally-untested structures.

The Exchange: Beth Comstock

29 Aug 2018

Over two decades at General Electric, former Vice Chair Beth Comstock had a window seat on the industrial group’s attempts to adapt to changes in technology and markets. She popped by Times Square to discuss GE, and how she became the company’s most senior female executive.

Korean chaebol overhaul runs into economic reality

28 Aug 2018

Seoul’s antitrust chief unveiled new rules to rein in powerful family conglomerates. Slowing growth, however, has made the likes of Samsung even more important to the country’s jobs plight. That means governance reform probably will wind up weaker than originally anticipated.

Musk flip-flop makes job harder to do – and keep

25 Aug 2018

Tesla’s CEO has pulled the plug on taking the $55 bln electric-car maker private, capping a record of overpromising and underdelivering. The abysmal handling of the half-baked idea calls Musk’s judgment further into question, just as Tesla needs cool heads to become profitable.