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Management & Leadership

Gulliver exits HSBC with nearly full scorecard

20 Feb 2018

The departing CEO largely achieved his goal of creating a “simpler, stronger” bank. Though return on equity was below 10 pct last year, higher interest rates and fewer fines will help HSBC hit that target too. Successor John Flint’s challenge is to identify new sources of growth.

Lloyds CEO’s next move: do as little as possible

20 Feb 2018

The UK lender is poised to unveil a new three-year strategic plan this week. Boss António Horta-Osório should resist anything dramatic. As long as the UK economy doesn’t implode, Lloyds could more than double its 2016 earnings just by avoiding charges for bad behaviour.

Siemens’ $50 bln IPO may be first step to breakup

19 Feb 2018

The German industrial giant’s shares could be worth 25 pct more if a sale of its healthcare unit lifts a conglomerate discount. But investors may still balk at owning a company with listed stakes in disparate sectors like wind and rail. In that case, calls for a breakup may grow.

Wall Street turns CEO pay into snowboard cross

16 Feb 2018

Goldman paid Lloyd Blankfein $24 mln for 2017, a 9 pct boost amid a so-so financial showing. That’s less than Morgan Stanley’s James Gorman despite an overall better performance. Mike Corbat’s whopping 48 pct jump at Citi still leaves him off the pace – but they’re bunching up.

Russia’s $2.5 bln Magnit sale is governance downer

16 Feb 2018

Founder Sergey Galitskiy is selling most of his 32 pct stake in the supermarket and vacating his role as CEO. While the company has struggled, his interests and those of minority shareholders were aligned. With state bank VTB stepping in, incentives could become more complicated.

Elaine Wynn could be $17 bln casino white knight

15 Feb 2018

With Steve Wynn no longer running the eponymous empire, his ex-wife and co-founder Elaine is finally free to sell shares. While that puts Wynn Resorts in play, a takeover would be tricky to execute. A better idea might be to keep Elaine in the game – and put her in charge.

Investors’ eyes are bigger than Chipotle’s stomach

14 Feb 2018

The burrito chain’s shares soared 14 pct after hiring Taco Bell’s boss as CEO. But Brian Niccol’s fast-food nous may not mix well with Chipotle’s wish to be a health-conscious brand. And the firm is wrapped up in poor governance that may hamper efforts to spice up the top line.

Blackstone succession plan is reassuringly gray

13 Feb 2018

Naming real-estate head Jon Gray as day-to-day manager of the investment giant is logical. Big questions – like whether to remain a partnership – will still sit with CEO Steve Schwarzman. Blackstone isn’t a typical listed company; the gradual approach to change shows it.

Fund float is rabbit in Deutsche Bank’s hat

13 Feb 2018

The German bank’s shares are down almost a fifth this year, valuing the lender at less than half its tangible book value. A successful IPO of its asset management business would help shore up credibility. If choppy markets permit, Deutsche should accelerate the offering.

Newell proxy combatants share flawed strategy

9 Feb 2018

Starboard wants to replace the Elmer’s-to-Rubbermaid group’s board with a slate led by former managers of Jarden, which it bought two years ago. Newell has failed to hit targets, but Jarden’s rollup model was running out of gas too. A breakup would be a better activist ambition.

Swire wisely calls on family to steady the plane

9 Feb 2018

The venerable Anglo-Asian conglomerate named a family member as chairman of its flagship Hong Kong unit. That signals it is taking problems at Cathay Pacific Airways and in oilfield services seriously. This could be good news for long-suffering Swire Pacific investors.

Tesco pay showdown contains a wider warning

8 Feb 2018

A claim that female shop workers should get the same wage as male warehouse staff could cost the UK grocer up to 4 billion pounds. It’s a lesser-known twist on equal pay. While retailers Asda and Sainsbury’s face similar legal challenges, all sectors may be exposed.

Elon Musk fiddles while Tesla burns

7 Feb 2018

The entrepreneur bagged some good PR for his other firms by putting a Roadster into space and selling flamethrowers. He also broadened Tesla’s funding mix with a securitization. But with some $4 bln of cash set for incineration this year, the carmaker needs to sell more stock.

Steve Wynn’s exit rolls dice on his casino empire

7 Feb 2018

A tone-deaf board "reluctantly" accepted its founder and CEO's resignation following sexual misconduct allegations against him. That could placate gaming authorities from Nevada to Macau. At the same time, it makes Wynn Resorts more vulnerable to a takeover.

Deutsche Bank fails even to hurdle low bar

2 Feb 2018

Investors already knew the German lender would have another poor quarter. They didn’t know that 2018 bank costs would be higher than forecast. Worse, Deutsche’s once-proud sales and trading arm is again underperforming peers – and revenues in the rest of the bank are down too.

Sony rolls opening credits on Turnaround 2

2 Feb 2018

Finance chief Kenichiro Yoshida is a good choice to lead the $62 bln group. The co-architect of Sony's overhaul can continue the aggressive revamp that has lined shareholders' pockets. Handsets and big shareholdings are two of the Japanese group's last big problem areas.

Asia’s #MeToo moment is exception that proves rule

1 Feb 2018

Sexual misconduct allegations against U.S. mogul Steve Wynn led to a selloff of shares in his Macau casino unit. Boardroom gender inequality suggest Asia is ripe for its own scandals. But cultural norms and lack of basic freedoms make that a more distant risk for investors.

Bond market tightening complicates Powell’s task

31 Jan 2018

U.S. Treasury yields rose to near four-year highs even as the Fed left policy unchanged at Janet Yellen’s last meeting. A fresh growth spurt and worsening deficit outlook pose challenges for successor Jerome Powell. Hiking in a rising-rate environment is riskier for the economy.

MetLife pension gaffe leaves CEO on thin ice

30 Jan 2018

Steve Kandarian’s big coup was getting the $725 bln insurer knocked off the list of systemic institutions. But MetLife’s failure to pay benefits to 30,000 retirees overshadows that achievement. After poor returns and a disappointing spinoff, it looks like his time is up.