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Management & Leadership

BP’s marathon repair job gets sprint finish

1 May 2018

The UK oil major’s first-quarter results beat expectations. Costs from the Gulf of Mexico spill mean it needs higher oil prices than peers to generate free cash flow. But a mix of cost discipline on new projects and higher crude values mean BP should be able to keep gushing cash.

UK bank fiasco makes case for tech stress test

1 May 2018

A botched system transfer locked almost a million TSB customers out of the UK lender’s online services. Chaotic technology rollouts are increasingly common in banks, but receive less scrutiny than financial risks. Preparing for unexpected events would make systems more robust.

Aviva’s investor climbdown sets tricky precedent

30 Apr 2018

The UK insurer will compensate preference share owners who lost out by selling their holdings after it threatened to redeem them early. That comes after protests forced Aviva to abandon a buyback that it argued was legal. The fiasco sets a high standard for investor protection.

Kim Jong Un’s hollow promises better than nothing

27 Apr 2018

The North Korean leader met South Korea’s president, vowing to work towards a formal peace treaty and a nuclear-free peninsula. The latter seems unlikely. But even a diplomatic thaw is good for South Korean business – and will reduce the tail risk of a catastrophic conflict.

Nintendo aims splat bomb at Japan’s gerontocracy

26 Apr 2018

The maker of hit video game Splatoon is getting a 46-year-old boss. That’s refreshing in an ageing country where seniority counts for so much. Youth can be a liability too, as evidenced by the growing pains of Uber or Facebook. But Nintendo’s business is a young man’s game.

BP’s chairman pick is odd balm for old pay scars

26 Apr 2018

The UK oil major has picked ex-Statoil CEO Helge Lund to replace Carl-Henric Svanberg. Lund is a respected figure, but drew investor heat for his high remuneration when at BG Group. Given BP Boss Bob Dudley himself had a pay spat in 2016, it will raise investor eyebrows.

China’s bad banks go on, even if bad bankers don’t

26 Apr 2018

Huarong is humbled as graft busters oust its chairman and confiscate passports. The company is part of an aging group that evaded obsolescence by turning into distressed asset investors. With $270 bln of bank loans gone sour, Beijing needs to keep bad banks around.

GE can get ahead of chairman-CEO trend

25 Apr 2018

The conglomerate defeated a shareholder proposal to separate the top jobs. But 41 pct of investors supported the measure, up from 24 pct a year ago. Double-titled boss John Flannery could pre-empt an embarrassing rebuke next year, and improve governance, by embracing a split now.

Faith in Bolloré brain trust resists Africa probe

25 Apr 2018

Shares in Vincent Bolloré’s group fell 9 percent after French police questioned the tycoon about dealings in Guinea and Togo. Yet Vivendi, chaired by his son Yannick, barely moved. Investors are trusting that the family’s dealmaking dynamism will survive the test.

Wells Fargo shareholders give CEO welcome respite

24 Apr 2018

Owners overwhelmingly backed executive pay and directors at the bank’s at times ill-tempered annual meeting. It’s Tim Sloan’s first good news after a slew of regulatory hits. He owes Chair Betsy Duke some thanks. His task of transforming the firm’s culture may not be so easy.

United and Equifax boost GE chairman-CEO splitters

24 Apr 2018

The airline says having an independent chair lets CEO Oscar Munoz focus on running the company. Equifax is keeping the double act it adopted after last year’s massive hack. It’s recognition there are two jobs that need doing. Beleaguered GE is looking increasingly out of step.

Lampert gives Sears something to grin and bear

23 Apr 2018

The hedge fund manager, also CEO and largest owner of the flailing retailer, wants to buy its assets. Sure, there’s a chance he is getting an opportunistic deal. But Toys R Us shows that for retailers, bankruptcy risk is real. Lampert’s last ditch may be the least bad outcome.

Arsenal manager’s weak second half instructs CEOs

20 Apr 2018

Frenchman Arsène Wenger is hanging up his boots at the North London soccer club after 22 years. A golden age of winning seasons followed his arrival in 1996, but Arsenal underwhelmed for the last decade. As with corporate bosses like WPP's Martin Sorrell, he hung around too long.

Regulatory reprieve adds tonic to Barclays revival

20 Apr 2018

After a year-long probe, British watchdogs plan to fine boss Jes Staley for trying to unmask a whistleblower. The verdict keeps Staley in his job and avoids awkward questions for the regulators and for Barclays’ board. Staley can now focus on turning around the investment bank.

Royal Mail’s best Amazon defence is to stay cheap

20 Apr 2018

The UK postal group has appointed Rico Back to replace departing CEO Moya Greene. The 5.7 bln pound company is staking its future on growing its parcel business. That requires it to both partner and compete with the online giant. Keeping delivery costs low will keep Amazon close.

Japan would take turn for worse without Abe

20 Apr 2018

Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.

Holding: U.S. judges could use CEO succession tips

19 Apr 2018

The Supreme Court’s Anthony Kennedy is expected to retire soon, taking advantage of a Republican president and Senate to ensure a like-minded heir. Yet his replacement probably won’t share his views, a new study suggests. Even when bosses have well-laid plans, they can go awry.

Bolloréxit sums up Vivendi’s sub-par governance

19 Apr 2018

Vincent Bolloré stunned investors by abruptly handing the French media group’s chairmanship to his son. The 66-year-old Vivendi shareholder may well linger, muddying accountability for group strategy. Corporate governance issues are familiar, but this is still an eye-opener.

Wynn tosses female directors into boardroom brawl

18 Apr 2018

The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.