Management & Leadership

Indian proxy firm successfully hits a nerve

7 Nov 2017

ITC, the $50 bln hotels-to-tobacco group, is alleging defamation over criticism of its board. Institutional Investor Advisory Services didn't persuade shareholders to vote against the chairman's pay. The case nevertheless is a turning point for scrutinizers of Indian governance.

TCI turns “inactivist” investor with LSE campaign

6 Nov 2017

The hedge fund usually demands that CEOs quit. This time it’s pushing for London Stock Exchange boss Xavier Rolet to stay in his job while criticising the chairman. The LSE board owes shareholders an explanation. The risk of a board spat, though, is that both men end up leaving.

New York Fed needs a new boss with teeth

6 Nov 2017

William Dudley is set to retire as president of the regional watchdog, which has day-to-day oversight of large lenders like Deutsche Bank and Goldman Sachs. As Washington leans toward deregulation, Dudley’s successor will be the first line of defense in ensuring banks behave.

Altice’s French stasis is worrying omen for U.S.

3 Nov 2017

The telecom group’s revenue fell 1.3 pct in France, despite investment in broadband and content. Its U.S. unit is healthier, but is seeing its customers turn away from cable. With interest rates rising and margins high, founder Patrick Drahi cannot rely on cost-cutting or M&A.

The Exchange: Ellen Pao

2 Nov 2017

The investor sued Kleiner Perkins for discrimination, becoming a canary in the coal mine for a raft of sexual-harassment and gender-bias allegations rocking Silicon Valley, Hollywood and beyond. She discusses if this is a turning point for what she describes as a systemic problem.

Under Armour’s governance is a value trap

31 Oct 2017

The sportswear firm’s stock tanked after a rare drop in quarterly sales. Broader retail woes don’t help. But shares have plunged two-thirds since founder Kevin Plank cemented control with non-voting stock. That gives investors little room to exercise the company back to health.

Burberry can lose kid gloves along with Bailey

31 Oct 2017

Designer Christopher Bailey is leaving the British fashion brand after 17 years. It has taken the company three years to unpick the deferential 2014 decision to hand him the CEO role. His exit gives new boss Marco Gobbetti a freer hand to implement much-needed turnaround plans.

Samsung’s new bosses will have to be generous

31 Oct 2017

The tech giant is raising dividends to at least $26 bln through 2020. A tweaked returns policy also gives Samsung's three fresh CEOs-in-waiting and newly separate chairman room to hand back even more. That would help keep outside investors onside for an eventual restructuring.

UBS investors benefit from smaller investment bank

27 Oct 2017

An inflow of cash from wealthy clients helped boost the Swiss lender’s pre-tax profit by 39 percent in the third quarter. UBS also profited from the lack of big trading operations which have hobbled some rivals. Shareholders stand to be rewarded with a higher annual dividend.

CEO exit worsens Deutsche Boerse’s bind

26 Oct 2017

Carsten Kengeter is stepping down after failing to resolve an insider-trading probe. An aborted plan to merge with the London Stock Exchange also eroded support at home. But his departure leaves the German group ill-prepared to benefit from any Brexit-related opportunities.

Jes Staley gets no due for new-look Barclays

26 Oct 2017

The UK bank’s boss heralded the end of major restructuring on Oct. 26. Investors – who sent the shares down 7 percent on weak third-quarter results – aren’t convinced. At a deep discount to book value, Barclays offers decent upside if Staley can hit his modest return targets.

Sliding investment bank pressures Deutsche CEO

26 Oct 2017

The German lender’s net revenue dropped 10 percent in the first nine months of 2017, led by sharp declines in trading fixed income and currencies. While cost-cutting limited the damage to the bottom line, boss John Cryan’s turnaround strategy depends on a recovering top line.

Carlyle puts socialism at the heart of capitalism

25 Oct 2017

Like China’s ruling party, the buyout firm has pulled off a leadership reshuffle, with new roles for David Rubenstein and his co-founders. Both Carlyle and China will share duties among a collective of powerful men. But at least in the Middle Kingdom it’s clear who’s in charge.

Deutsche Bank’s next problem may be excess capital

25 Oct 2017

The German lender wants to float a 25 pct stake in its asset management arm next year. An IPO could raise around 2.2 bln euros, Breakingviews calculates. Deutsche would dilute its exposure to its best business – but would once again be able to give shareholders a dividend.

Arconic’s boardroom peace comes just in time

23 Oct 2017

The car and aircraft-parts maker resolved its management struggle with activist Elliott Management by tapping GE’s Charles Blankenship as CEO. A fresh earnings miss means he’ll need to hit the ground running. Troubles in a key new engine program are slowing progress on margins.

GE has become the ultimate industrial lightweight

23 Oct 2017

Earnings that even new CEO John Flannery called “horrible” put fresh pressure on a stock down over 25 pct this year. The last surviving original Dow member now has by far the lowest weighting of any share in the index. It’s an embarrassing sign of the storied firm’s troubles.

Ericsson’s turnaround signal may weaken

20 Oct 2017

The telecom-kit maker’s results were less grim than expected, but sales are shrinking, and its operating margin is still feeble. New chief Borje Ekholm will struggle to meet his ambitious profit target unless he can shut – or find buyers for – its various loss-making units.

Consumer goods makers poised for the big purge

19 Oct 2017

Nestlé, P&G and their peers are pumped far above their long-term valuations. Collectively, the biggest 10 would lose almost $350 bln of market value if history reasserted itself. A squadron of activists offer support, but Unilever’s earnings wobble hints at brittle share prices.

Unilever struggle gives hope to predators

19 Oct 2017

The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.

Rolet hands LSE successor a triple quandary

19 Oct 2017

The London Stock Exchange boss is going to exit once his replacement is found. The Frenchman expanded and diversified but failed to clinch a deal with Deutsche Boerse. His successor will inherit a company confronting big shifts in technology, capital markets and politics.