Management & Leadership

HSBC’s new CEO strives for profitable banality

11 Jun 2018

John Flint’s plan to lift return on tangible equity above 11 pct, while investing up to $17 bln in technology and China, is hardly radical. Yet aiming for more than modest revenue growth could be reckless. It should be enough to maintain the bank’s premium to its European peers.

Trump-Kim parley has a downside for Xi

11 Jun 2018

A breakthrough in Singapore between the mercurial U.S. and North Korean leaders would be an economic win for Seoul and others in the region. China might even profit from the détente. President Xi Jinping also could lose negotiating leverage, though, as trade tensions escalate.

Verizon’s new boss will unscramble M&A signals

8 Jun 2018

Outgoing CEO Lowell McAdam sent mixed messages on whether the U.S. telecom would buy a big media company. Replacing him with the chief tech guy suggests Verizon is more interested in growing its reach than its content. A bid for $15 bln satellite operator Dish could follow.

BT dividend cut would give next CEO room to invest

8 Jun 2018

The telecom group’s boss Gavin Patterson is leaving after nearly five years. Investors have lost roughly 40 percent in that time. His successor may have to cut payouts to fund investment if relations with regulators are to improve. The share price already reflects that risk.

G7 risks becoming G-zero without consensus

7 Jun 2018

President Donald Trump is the sore thumb among leaders meeting in Canada on Friday. Last year’s G7 pledges were already watered down, and he hadn’t then left the global climate accord or started erecting trade barriers. The forum loses relevance if it lacks U.S. economic backing.

Daily Mail editor picks shrewd time to move on

7 Jun 2018

Paul Dacre is leaving as editor of the Brexit-cheering paper after 26 years. His tenure saw the Mail’s top line shrink at a much slower rate than rivals like the Sun. A slowdown this year, and the parent group’s downbeat financial targets, could have imperilled that record.

Athenahealth moves from trauma to cure

6 Jun 2018

The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.

Facebook’s top two get a muddled message

5 Jun 2018

Most independent shareholders elected to nix the social network’s super voting rights. Yet they voiced approval for Mark Zuckerberg and Sheryl Sandberg. The strong showing for the boss and COO undercuts the argument to scrap the structure that keeps them entrenched.

Starbucks boss seeks smoother second shot at exit

4 Jun 2018

Howard Schultz is leaving the company he built into a global icon, and he may even run for U.S. president. He stepped away in 2000, but came back eight years later. If he’s to quit Starbucks for good this time, the coffee chain will need ideas that stay fresher for longer.

1MDB scandal could yet bring some critical closure

4 Jun 2018

As Malaysia's new prime minister reexamines a case the top U.S. lawman called "kleptocracy at its worst", a Breakingviews e-book recounts the sovereign fund’s rise and fall. Lessons for banks, money managers and politicians will be even sharper if ringleaders are held to account.

E-book: 1MDB

4 Jun 2018

The Malaysian scandal once called “kleptocracy at its worst” is being freshly investigated following the country’s shock election outcome. Breakingviews chronicles the sovereign fund’s rise and fall, and the potential repercussions from Kuala Lumpur to Wall Street. Read online or download the book.  

Petrobras CEO exit weakens Brazil’s adult oversight

1 Jun 2018

Pedro Parente had been a successful boss of the state oil giant until it cut diesel prices to placate striking truckers. Now his tenure looks more like a blip than the end of traditional government meddling. Petrobras’ share-price plunge is a warning about how the economy is run.

Fiat Chrysler revs up for new hair-raising ride

31 May 2018

CEO Sergio Marchionne is about to unveil the $32 bln carmaker's next five-year plan after hitting most previous targets. He has to show how the company can fix its stalling Europe unit while catching up on electric and self-driving vehicles, all without him at the wheel.

Greyhound owner’s turnaround faces lengthy delay

31 May 2018

Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.

Anbang appeal sends false signal

31 May 2018

The insurer’s ex-chairman wants to overturn a $10 bln fraud conviction. With another boss just exonerated, it looks as if China’s embattled tycoons are mounting a legal fightback. But the two cases are very distinct and Anbang’s sensitivity makes success highly unlikely.

Exxon shareholders dutifully take back seat

30 May 2018

One year after rebuking management over climate change, owners of the $330 bln oil giant turned quiescent. They toed the company line on pay, lobbying and splitting the chairman and CEO roles. If returns remain subpar, investors will have no one but themselves to blame.

Sorrell’s new shell tests value of old contacts

30 May 2018

Six weeks after leaving WPP, Martin Sorrell is putting $53 mln into a vehicle to buy up small ad and technology groups. Success will depend on his address book securing access to senior clients. It will also show whether the 73-year-old really merited his massive former salary.

Fixing Deutsche’s retail bank is the easier part

30 May 2018

New boss Christian Sewing wants the German lender’s domestic unit to earn an economic return by 2021. That’s doable as long as Postbank delivers promised savings of 900 mln euros a year and higher interest rates help. It’s less daunting than turning around the investment bank.

Deutsche Bank de-flabbing cuts to the bone

24 May 2018

The German lender plans to cut more than 7,000 jobs by 2019, including a one-quarter reduction in equities trading headcount. It’s a bold move by boss Christian Sewing to get costs to 22 billion euros. It could also end up damaging Deutsche’s more profitable investment banking businesses.

StanChart dream reveals Barclays’ limited options

23 May 2018

The UK bank has considered merging with rivals including Standard Chartered, according to the Financial Times. Combining the two makes little financial sense. But it shows Barclays boss Jes Staley has few obvious ways to boost returns and appease activist Edward Bramson.