Pay

At least Tencent can retreat into a virtual world

14 Nov 2024

The Chinese titan's hits like "Dungeon & Fighter Mobile" helped power a one-third rise in adjusted quarterly earnings to $8 bln. Outside of gaming, though, fintech and cloud services barely grew. Consumers and companies are holding back splurging in the real world.

Fintechs’ IPO valuations can look beyond Nubank

24 Oct 2024

The $70 bln Brazilian lender is seen as a benchmark for unlisted rivals. But Nubank’s focus on interest income, and the idiosyncrasies of its home market, make it look rather different to the likes of Revolut. Bankers prepping neobank IPOs may gain from looking at other peers.

Worldline buyout offers rare shot at easy returns

15 Aug 2024

The $2.5 bln French payment firm is an obvious target thanks to its depressed share price. Private equity buyers can wring out a decent return even with zero profit growth in the next few years. And seeing as France is only a minor market, the state is unlikely to meddle.

European boards have too little skin in the game

17 Jul 2024

Non-executive directors at big US companies get 60% of their pay in equity. That’s rare in Britain, France and Germany, where many board members own a slither of stock. Cash fees warp incentives, discourage engagement, and risk making Europe’s capital markets less competitive.

European board pay requires a US-style overhaul

16 Jul 2024

Non-executive directors at UK and EU-based firms own little equity in the companies they oversee. In this Exchange podcast, Liad Meidar of the hedge fund Gatemore argues that this is a problem, while Peter Boreham of the pay consultancy Mercer explains why it’s hard to change.

China’s banker pay crackdown risks Pyrrhic victory

8 Jul 2024

State-backed financial firms will face orders to cap salaries at about $400,000. The move reverses a drive to pay for performance, will alienate staff, create stodgier institutions and kill Beijing's dream of creating "top class" global investment banks - all for little benefit.

European bosses can only envy Elon Musk

20 Jun 2024

The Tesla chief’s $56 bln pay package is particularly vertiginous, but even less-blessed US CEOs do far better than their European peers. In this Viewsroom podcast, Breakingviews columnists discuss how the pay gap shapes executive habits across the Atlantic.

Musk expects more from shareholders than himself

12 Jun 2024

A vote on the Tesla boss’s court-nixed $56 bln payday has become a hostage negotiation, the implicit threat Musk could walk justified by saying 'a deal is a deal.' That didn’t stop Musk trying to kill a deal for Twitter. After recent dismal displays, investors should do likewise.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

Vote no to bashing proxy advisers

25 Apr 2024

Corporate leaders at JPMorgan and AstraZeneca bridle when ISS and Glass Lewis criticize their governance. No wonder: Some high-stakes shareholder votes this year will be uncomfortable for feather-bedded bosses. Proxy firms are problematic, but they do more good than harm.

Musk’s next big payday matters more than his last

17 Apr 2024

Tesla shareholders will soon vote on the CEO’s court-voided $40 bln pay package. It’s not a tough decision. Recent departures and strategy shifts make Tesla’s value highly dependent on keeping Elon Musk motivated. But a new pay plan is needed too, and the stakes are even higher.

Sergio Ermotti has a path to Wall Street-style pay

28 Mar 2024

UBS handed its CEO $16 mln for nine months’ work last year. That’s more than his European rivals, but less than the bosses of US lenders like Morgan Stanley, whose valuation the $100 bln Swiss bank aspires to. Tweaked terms next year give Ermotti a chance to narrow the gap.

Elon Musk is his own worst enemy: part 420

31 Jan 2024

A Delaware court nixed the Tesla CEO’s $56 bln pay package, finding rampant dysfunction behind it. The sum may have been justifiable, but the carnival barking that underpins the company’s valuation complicates matters. If investors keep enabling Musk, bad governance will persist.

ECB is battling an imaginary wage spiral

24 Jan 2024

European Central Bank President Christine Lagarde is set to hold rates this week because she fears rising salaries will boost inflation. Yet euro zone workers are getting raises of just 3.8%, down from a year ago. Frankfurt may not want to cheer bigger pay, but it can ignore it.

Capital Calls: Microsoft’s Russian hacker

22 Jan 2024

Concise views on global finance: The $3 trln tech firm disclosed that a nation-state hack accessed leaders’ email, saying it showed the need for potentially “disruptive” measures. It’s a worrying acknowledgement of the still-vague costs of geopolitical tensions for tech giants.

Elon Musk’s losing streak is heading for Tesla

17 Jan 2024

The billionaire wants 25% control at the $690 bln carmaker, after trimming his stake in part to finance an ill-advised deal for Twitter. Musk’s social-media frolic risked making him an absentee CEO; containing that threat means following bad governance with worse.

Capital Calls: Ryanair

18 Dec 2023

Concise views on global finance: The 21 bln euro budget airline’s potential 100 mln euro bonus for its CEO looks all the more awkward given the board’s decision last year to tweak the conditions.

EU payments tie-up would build wider M&A defence

11 Dec 2023

Worldline’s market value has shrunk by 60% to $5 bln in a year, making it vulnerable to a takeover by US rivals. Teaming up with Italian peer Nexi is a worthy alternative. While sorting out the ownership structure looks tricky, the reward is greater regional clout and savings.

Payments sector comedown creates opening for M&A

17 Nov 2023

The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.

Capital Calls: Starbucks’ wages

6 Nov 2023

Concise views on global finance: Only US baristas with five years of experience will get above-average raises in 2024. Despite more than 9,000 organized workers, Starbucks is dodging the labor pressures faced by shipping firms and automakers this year.