Management & Leadership

Chinese micro-lender’s $100 bln dream is a stretch

12 Mar 2018

Qudian’s founder CEO Min Luo will forgo his salary until the $5 bln firm tops a $100 bln valuation, bigger than backer Ant Financial. That’s unrealistic for a company trading below its New York IPO price in an industry under intense scrutiny – unless its shareholder turns buyer.

Goldman’s golden chance to trade up on governance

9 Mar 2018

Lloyd Blankfein may step down as head of the Wall Street bank later this year. A new CEO could provide fresh momentum to efforts to sharpen the firm’s trading strategy. Bringing in an independent chairman would add extra heft – and set a good example for others to follow.

UK directors group offers lesson in bad management

9 Mar 2018

The chair of the Institute of Directors is temporarily stepping down after a draft report that contained conduct allegations against her was leaked before she had a chance to defend herself. That will harm the credibility of a group which lobbies for better corporate governance.

Disney CEO’s pay is a deal too far

8 Mar 2018

The media group’s shareholders voted against plans for Bob Iger’s pay. He made $36 mln for 2017 and will benefit if a $52 bln purchase of parts of Fox goes through. Iger’s job is to make deals work, not just make them, and the board’s is to ensure his presence isn’t “imperative.”

Chinese bidders find new way to collar their prey

8 Mar 2018

Geely’s boss used an “equity collar” to amass a $9 bln stake in automaker Daimler fast, and without much hard currency. HNA has done something similar at Deutsche Bank and Swiss travel retailer Dufry. Other Chinese firms could use derivatives to make their money go further.

LSE is suspended in comfortable limbo

2 Mar 2018

Despite a boardroom spat over the departure of CEO Xavier Rolet, the exchange operator’s adjusted operating profit rose 18 percent last year. The next boss will face big questions about consolidation and Brexit. The answers will determine whether LSE can justify its valuation.

McCall’s next job: show ITV has a future

28 Feb 2018

The former easyJet boss’ first earnings at the broadcaster were depressingly familiar. The terrestrial TV business is shrinking, and its online audience is barely making any money. A lower payout may irk investors, but makes space for critical investment in digital advertising.

Sea captain abandons ship amid choppy waters

28 Feb 2018

Nick Nash is leaving as president of the Tencent-backed tech outfit just months after a weak IPO. His visions of a $100 bln Sea were fanciful. Losses are mounting as is e-commerce and payments competition in Southeast Asia. The $4 bln company will have to chart a smarter course.

Murdoch holds winning hand in Sky poker game

27 Feb 2018

Comcast’s $31 bln offer for the European pay-TV firm poses a dilemma for Disney’s Bob Iger. He can try to outbid Brian Roberts or reduce his price for Fox’s assets, excluding its Sky stake. Either way, Rupert Murdoch looks set to come out ahead as the seller in a seller’s market.

StanChart shareholders pay Winters a compliment

27 Feb 2018

The Asia-focused lender rewarded investors by resuming dividends. Yet return on equity is still dire at just 1.7 pct. With shares near to tangible book value, investors must believe boss Bill Winters is on track to hit ambitious sales and return targets. That looks optimistic.

Provident Financial faces cleaner but leaner future

27 Feb 2018

The UK doorstep lender is raising 300 mln pounds to settle with regulators over complex loans, and fix its capital. The business that emerges should be better run but less profitable. Shareholders would have been better off with the lower-octane version to start with.

George Foreman Grill maker gets leaner, not meaner

26 Feb 2018

The maker of the famed kitchen device – as well as bits and bobs ranging from faucets to fish food – is combining with its majority owner in a deal valued at $10 billion. Spectrum Brands comes out with a neater structure. Its collection of businesses, though, is still messy.

General Electric brings more bad things to light

26 Feb 2018

The $125 bln conglomerate keeps finding skeletons in its closets. A $4.2 bln charge to better account for service contracts was expected; less so are revelations GE Capital inflated its earnings. CEO John Flannery’s overdue cleanup is exposing flaws throughout the weakened giant.

Qualcomm slaps Broadcom with two Herculean labors

26 Feb 2018

The chipmaker laid down conditions for agreeing a merger – including boosting the proposed break fee to about $13 bln. Qualcomm is being reasonable but disingenuous. Its suitor would still have two very high bars to clear: raising the $120 bln price, and convincing regulators.

McKinsey’s next leader inherits a big project

26 Feb 2018

Kevin Sneader has been chosen to run the elite consultancy. He’s a traditional-looking candidate but a stint in Asia suggests growth markets are a priority. The challenge is to keep digital reinvention on track and avoid embarrassments like that recently suffered in South Africa.

Xi’s open-ended rule bodes ill for governance

26 Feb 2018

China is set to scrap presidential term limits, meaning Xi Jinping could serve as leader for life. For foreign execs and investors, the further consolidation of power means less predictable policymaking. It also raises the risk of bad decisions taken in an information vacuum.

Buffett generational shift applies to investors too

24 Feb 2018

The Berkshire Hathaway chairman’s fans will lap up his ample returns and folksy advice as they always do. But will their kids? Away from Omaha, big investors like BlackRock and Vanguard are positioning for a new generation of investors. A similar challenge awaits Buffett’s successors.

Barclays throws money at its many problems

22 Feb 2018

The UK bank’s boss Jes Staley has pledged to double payouts this year to boost shares trading at 0.7 times book. Yet Barclays needs to reverse falling revenue to meet a 9 percent return on tangible equity target by 2019. Even then, regulatory risks linger in the background.

AA roadside repair prolongs debt hazard

21 Feb 2018

The UK breakdown group’s shares lost of a fifth of their value after its new CEO warned of lower earnings and slashed the dividend. A costly push to sign up younger members is necessary but risky. Pulling it off is the only way to shrink the company’s 2.7 bln pound debt load.

Orange’s home gains will juice up lagging shares

21 Feb 2018

The telco’s market share and revenue are rising in its domestic market at the expense of rivals like Altice-owned SFR. Signs that CEO Stéphane Richard is bypassing a long-running Gallic price war may erase the discount at which his company trades to European and French peers.