Management & Leadership

Deutsche Bank will struggle even to hurdle low bar

25 Jul 2018

The German bank is targeting a 4 percent return target for 2019. To achieve it, the German lender requires revenue to hold steady while cutting costs to 22 billion euros. Given ongoing declines in the investment bank, even that modest goal looks ambitious.

Marchionne’s reformist legacy at risk in Italy

24 Jul 2018

Hailed as an Italian Thatcherite, the most successful car boss in a generation challenged rigid labour rules at home. Standing up against unions and local lobbies, he raised productivity and saved jobs. His absence will make it easier for Rome’s new bosses to go backwards.

Stock picker’s exit a sign of the hedge-fund times

23 Jul 2018

Leon Cooperman is parting with investors after nearly three decades to turn his Omega Advisors into a family office. The value investor was an anachronism in a field led by systematic giants like Ray Dalio’s Bridgewater. Going out while markets are on a high, at least, is shrewd.

Papa John’s poison-crust defense is justified

23 Jul 2018

The U.S. pizza chain has adopted a mechanism that would dilute ousted founder and largest shareholder John Schnatter if he tries to gain creeping control. It will keep other bidders away too. Such measures often aren’t helpful, but in this case they offer needed breathing space.

KKR’s Taipei deal hints at Asian daring

23 Jul 2018

The buyout firm led by Henry Kravis is leading a $1.6 bln takeover of chemicals maker LCY. Taiwan has been a tough market for private equity, including KKR. Slow growth and tensions with China add concerns. As dry powder in the region grows, the risk calculus may be changing.

Sergio Marchionne leaves a giant sweater to fill

21 Jul 2018

Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.

Powell is ideal Fed chief for Trumpian times

20 Jul 2018

The U.S. president’s criticism of interest-rate hikes is a challenge to the Federal Reserve’s independence - but it shouldn’t trouble investors. Chair Jerome Powell is politically savvy and has earned bipartisan praise. Not being an econo-wonk like his predecessor probably helps.

Aussie tycoon hammers home overboarding message

20 Jul 2018

James Packer resigned from a whopping 22 more directorships after he quit the Crown Resorts board for mental health reasons. Campaigns against such overstretched executives are on the rise, as evidence suggests returns can suffer. Companies would be wise to demand greater focus.

Viewsroom: Europe puts Google in a bind

19 Jul 2018

The search firm can easily cover the EU’s $5 bln fine for using its Android phone system to stymie rivals. But the order to stop forcing handset makers to pre-install its software could clip innovation. Plus: Goldman Sachs and Tesla put lackluster corporate governance on show.

Gorman shows new Goldman CEO clean pair of heels

18 Jul 2018

Morgan Stanley’s boss hit the top of his profit target last quarter and handily beat his rival’s returns, after stripping out surprisingly lower pay. It’s more confirmation Gorman has built a strong business, and sets a tough marker for David Solomon’s promised revamp at Goldman.

Goldman gets a B-minus on governance

17 Jul 2018

Strong quarterly earnings may be a reassuring backdrop for boss Lloyd Blankfein’s retirement. But making David Solomon chairman and CEO muddies the Wall Street firm's succession. Splitting the roles would be better, and there’s already a good candidate on the board.

Elon Musk outburst puts Tesla board on the spot

16 Jul 2018

Punishing a CEO who tweets, without evidence, that someone is a pedophile ought to be a no-brainer. But Musk’s fortunes and the electric-car maker’s are symbiotic, and his allies pack the board. Investors should worry for their own sakes if directors fail to act this time.

Goldman’s new DJ samples crosstown rival’s beat

16 Jul 2018

Anointing part-time tune-spinner and investment banker David Solomon as the Wall Street firm's next CEO would further de-emphasize Goldman’s volatile trading business. Morgan Stanley did something similar back in 2010 – though there, traders are again in the ascendant.

Governance rejig gives UK workers small megaphone

16 Jul 2018

Staff in large British companies will be given the chance to sense-check executive pay under a new corporate governance regime. It’s an acknowledgement that employees as well as shareholders deserve a say on how companies are run. Recognising the problem is only a start.

Broadcom chief uses up eight of his nine lives

12 Jul 2018

With a single deal – the $19 bln acquisition of software company CA – Hock Tan has torched a reputation built through years of savvy acquisitions. Broadcom lost nearly $16 bln of market value at a stroke. Recovering from that will take time, luck and abstinence.

UK broker’s late realism raises alarm beyond CEO

10 Jul 2018

TP ICAP lost a third of its 2.4 bln pound market cap after slashing merger synergy forecasts and sacking boss John Phizackerley. He was too optimistic, but if rising costs associated with Brexit, MIFID II and IT security came as a surprise to the board, he wasn’t the only one.

Sonos IPO sounds like a sales pitch to Amazon

9 Jul 2018

The wireless-speaker maker plans to go public and may target a $3 bln valuation. That’s pitched high for a firm facing stiff competition and losing money on barely double-digit sales growth. But it’s a trifle for Amazon CEO Jeff Bezos, who can mimic Apple’s success with Beats.

UK shareholder battle upsets activist conventions

9 Jul 2018

Unhappy investors typically push for CEOs to step down. At infrastructure firm Stobart, fund manager Neil Woodford tried to get the chairman sacked. Iain Ferguson narrowly survived with help from rival Invesco. But the brawl puts little faith in investors guiding quiet change.

CEO exit is game changer for ThyssenKrupp

6 Jul 2018

Heinrich Hiesinger offered to quit the German conglomerate days after clinching an underwhelming steel JV with Tata. His long tenure and advocacy of the group’s conglomerate structure made him ill-suited to the action ThyssenKrupp needs. His replacement should be more radical.

Review: A fleeting snapshot of India’s Bollygarchs

6 Jul 2018

“The Billionaire Raj” offers a colourful account of many types of cronyism afflicting the country, and whether India will descend into Russian oligarchy or give way to a U.S.-style progressive era. The pace of change, though, means some conclusions have already been overtaken.