Shareholder activism is vital for a properly functioning City April 26, 2012 OWNERS of publicly listed companies need to behave as proprietors. They shouldn’t micromanage firms in which they invest – that is their executives’ jobs – but they should ratify some key decisions, including the pay of their top staff. In his 1970 polemic Exit, Voice and Loyalty, Albert O Hirschman explained that members of any [...]
Ireland plots a summer return to bond markets April 26, 2012 IRELAND will dip its toes back into the international bond market this summer, but only if it passes a referendum on the European Union’s proposed fiscal compact. Michael Noonan, the country’s finance minister, said yesterday that Ireland’s rosier economic outlook should allow the government to test some sales of its bonds. “We don’t have a [...]
Tucker calls for controls over shadow banks April 26, 2012 THE SHADOW banking sector could face a raft of new red tape, with a senior Bank of England official outlining 10 fresh regulatory proposals at a speech in Brussels this morning. Paul Tucker will recommend widening capital requirements and applying “bank-type regulation” to the shadow industry, which includes money market funds, securitisation and securities lending. [...]
WHAT THE OTHER PAPERS SAY THIS MORNING April 26, 2012 FINANCIAL TIMES NEW SFO BOSS VOWS TO STAY RELEVANT The incoming director of the Serious Fraud Office has promised to pursue a more aggressive crime-fighting strategy, saying he will investigate “significant strategic targets” suspected of committing the most complex financial crime and overseas corruption. INVESTORS TURN HEAT ON MAN CHIEF Leading shareholders of Man Group, [...]
AstraZeneca’s chief goes after profit warning April 26, 2012 ASTRAZENECA’S (AZ) shares tumbled yesterday after chief executive David Brennan abruptly quit the firm. Brennan, who has led the pharma giant for six years, announced his early retirement as the company issued a profit warning and quarterly results that missed forecasts. The firm’s nominations committee has hired headhunter Spencer Stuart to replace Brennan, who AZ [...]
Fuel strike threat returns as tanker drivers told to reject deal April 26, 2012 FUEL tanker drivers have been advised to reject a proposed deal on pay and conditions after union bosses said it “did not go far enough”, raising the prospect of a strike that could lead to fuel shortages. Officials at the Unite trade union met yesterday and agreed “overwhelmingly” to recommend that the proposals should be [...]
Amazon shares soar after £8bn quarterly sales April 26, 2012 INTERNET giant Amazon last night announced quarterly earnings that exceeded even the most optimistic expectations, sending its stock up 15 per cent in after-hours trading. Shares in the company leapt to $225 (£138) each – a valuation of more than 70 times earnings – even though net income fell from $201m to $130m on a like-for-like basis. But [...]
Brevan Howard boss hits top of hedgie rich list April 26, 2012 THE CO-FOUNDER of hedge fund Brevan Howard has trebled his personal wealth to £1.4bn in just three years, according to new research. Publicity-shy Alan Howard, 48, tops the list of hedge fund entrants in The Sunday Times Rich List 2012, with a 44 per cent annual increase in his wealth. Howard, who recently moved to [...]
Businesses want shareholders to have more control over pay April 26, 2012 BUSINESS groups today praised the government’s plans to make company directors more accountable to their shareholders, but warned the public debate around executive remuneration is at risk of being derailed by false information. “Out of control remuneration at some FTSE companies is damaging the reputation of British business as a whole – giving shareholders a [...]
Banks rush to lend to Glencore as it secures $12.8bn in funding April 26, 2012 COMMODITIES trading giant Glencore swept corporate concerns over bank lending to the side yesterday as it secured a mammoth round of funding, with financial institutions queueing up to sign over their money. Ninety-one global banks have committed to the funding syndicate, pledging a total of $12.8bn (£7.9bn) – well above the $10bn that the company had [...]
