Mark Zuckerberg could learn from Jamie Dimon 5 Apr 2018 Crises forced both CEOs onto the public stage. Over the past decade, JPMorgan’s boss has regularly confronted issues and explained the firm’s strategy. Social networks, like banks, rely on confidence to survive and thrive. The Facebook founder would do well to recognize that.
Stronger U.S. Treasury still looks pretty weak 4 Apr 2018 Justin Muzinich’s nomination as deputy secretary ought to add weight to the Treasury when it comes to advising on economic policy. Muzinich helped forge last year’s tax cuts. But with hardliners egging President Trump into a trade war, his influence may be a drop in the bucket.
Sorrell saga points to boardroom rift at WPP 4 Apr 2018 The ad group is investigating allegations of “personal misconduct” against its 73-year-old CEO, which he denies. The leaked probe suggests some directors have misgivings following a share-price slide. The bigger problem, though, is WPP’s structurally-threatened business model.
Smith & Nephew’s new boss has two rehab options 4 Apr 2018 CEO Namal Nawana has to revive mediocre top-line growth and slash costs at the artificial-knee maker. A flair for turnarounds should keep activist Elliott at bay for now. And the sale of the last company he headed shows an appetite for more drastic prescriptions when necessary.
Elliott targets right pressure points at Hyundai 4 Apr 2018 The feisty U.S. hedge fund has waded into a restructuring at the South Korean conglomerate. Elliott’s three-part, $1 bln investment seems focused on the aspects of the overhaul that are most likely to generate controversy, and where it could rally support from other investors.
Losing WPP boss could be pricier than keeping him 3 Apr 2018 The board is investigating Martin Sorrell for potential improprieties, the WSJ reported. It’s hard to think of a CEO more enmeshed in a company’s strategy. Even if nothing comes from the probe, it should force investors to confront their unhealthy reliance on WPP’s main man.
New York Fed boss starts with point to prove 3 Apr 2018 A search billed as highly inclusive ended up picking John Williams, a white, fifty-something insider, to run the key Fed district. He may have been the best candidate, but on top of managing markets and regulating Wall Street he’ll be on the spot on diversity from day one, too.
Siemens’ slimming strategy is half-hearted 3 Apr 2018 A part-sale of medical unit Healthineers has failed to shrink the German company’s conglomerate discount. After all, the 84 bln euro group still spans trains, energy and factories. Siemens’ exit from the lighting and mobile businesses offers CEO Joe Kaeser a useful template.
Qualcomm’s director election offers double rebuke 30 Mar 2018 Support for incumbents averaged under half the U.S. chipmaker’s outstanding shares. That’s a warning after the board resisted Broadcom’s $117 bln hostile bid, nixed by Donald Trump. Meanwhile, the convoluted process and an error voting Vanguard’s shares shame an archaic system.
Shareholders could upset Hyundai overhaul 29 Mar 2018 South Korea’s second-largest conglomerate is finally moving to simplify its elaborate corporate structure. But the first stage of the rejig short-changes minority investors in a key unit. The controlling Chung family might have to improve the terms to get this done.
Equifax CEO pick has lesson for Facebook 28 Mar 2018 The hacked $14 bln credit-scorer’s new boss is more technocrat than tech nerd. Then again, Facebook’s poor handling of its data woes suggests having a coding genius in charge is no certain solution. Hiring an outside manager willing to ask tough questions is a step forward.
UK gender pay gap requires “just do it” approach 28 Mar 2018 Disclosures have revealed discrepancies, especially in finance, which will not close on their own. The state can help. Fining employers which fail to make progress over several years would align the interests of women and investors. CEOs would have to match words with actions.
Wells Fargo is wrong objection to NY Fed candidate 27 Mar 2018 John Williams, who heads the U.S. central bank’s San Francisco operation, may be close to the top Liberty Street job. Wells sinned on his watch, as Senator Elizabeth Warren has noted, but other watchdogs deserve blame. For anyone looking, there are better arguments against him.
Deutsche CEO quest will be hard work 27 Mar 2018 The German lender has begun looking for a new boss. Replacing John Cryan may prove difficult until the company figures out whether to be a global investment bank or return to its more modest corporate lending roots. Nor are there obvious fixes for an ailing business model.
Ego is Italy’s main barrier to radical government 26 Mar 2018 The rightist League sided with the 5-Star Movement to elect parliament’s speakers. It’s a sign the two forces, which want to unpick reforms and spend more, can collaborate. A coalition of mavericks would strain euro zone relations. But agreeing on a prime minister will be tough.
China sows confusion with two central bank bosses 26 Mar 2018 The head of the banking and insurance regulator may also become party chief at the People’s Bank of China. Guo Shuqing would outrank new Governor Yi Gang, making for an awkward combination. Guo might be the more effective reformer, but his brash style could unsettle markets.
Elliott forced to play long game at Telecom Italia 23 Mar 2018 The sudden resignation of eight Vivendi-backed directors triggers a full board reshuffle at the Italian telecom. The move makes it harder for Elliott to install its preferred candidates. But the activist could still get some of what it wants by aligning with Italian funds.
Steve Wynn’s casinos make best of bad hand 23 Mar 2018 After resigning as CEO of Wynn Resorts amid scandal, he has found buyers for his entire stake. New boss Matthew Maddox is playing terrible cards fast and well. He settled a big lawsuit and just brought in Macau rival Galaxy as a backer, which could lead to fresh opportunities.
Zuckerberg’s slow defense reveals real weakness 21 Mar 2018 The Facebook founder finally explained how users’ information was harvested - four days after it was revealed by press reports. But his promise to tighten controls rings hollow. The trouble is the social network is built on data. Truly securing it may blow up its business.
Failed MBO leaves Nordstrom in a jumble 21 Mar 2018 The board's rejection of the founding family's $8 bln offer for the retailer makes both sides look too stubborn. Nordstrom is a middling performer in a struggling industry. Compromise would have suited shareholders well. Instead, they face an ill-fitting future.