CEOs

CEOs of the future

Jim Kim — Tue, 18 Nov 2008 07:57:07 -0500

What will it take to run a big company really well over the next few years? People are talking about a new kind of CEO, an evolution from the crop that has upended Wall Street. Fortune says, "Gone is the Lone Ranger with his loyal Tontos. A more workable alternative, in an environment of increased regulation, diffuse power and stagnant stock prices: The Lifeguard." In a way that's sad--Fortune likens the next wave of winning CEOs to people whose job is to make sure employees don't drown. Has it really come to that?

My question is this: Who will emerge as the most savvy CEO of this new era. That is, who will get his company through this mess in the best form. The early money is on Ken Lewis and Jaime Dimon. Vikram Pandit has a lot of work to do. As do John Mack and the early front-runner Lloyd Blankfein.

For more:
- here's an article on CEOs from Fortune

Richard Bove is in his prime

Jim Kim — Sun, 03 Aug 2008 22:30:03 -0400

We've noted that analyst Richard Bove is a "reporters' best friend" sort of analyst. At 67, he's been covering banks for 26 years and he's definitely in his prime--he's gotten better with age. "Bove has gained a certain reputation as one of the few bank analysts to predict the blow-up in the housing market and subsequent problems at many banks. He is also one of the few whose advice, if heeded, would have made money for investors over the past year." Few analysts these days are publicizing "who's next" lists of failing banks. He's tough on executives--unafraid of CEOs at Morgan Stanley, Citigroup and others. At Ladenburg Thalmann, he's got what he thinks is a fine perch from which to criticize. He's negative still on investment banks but thinks some commercial banks have turned the corner.

For more:
- here's the Times profile

Top bank CEOs face big challenges

Tue, 27 May 2008 06:59:57 -0400

Forbes weighs in with an interesting piece about the short-term challenges facing the CEOs of top banks. In many cases, they all are wearing the same shoes. They must reduce costs, shore up capital, rationalize staff levels, and such. But at a slightly deeper level they have individual burdens to bear. Citigroup would seem to be carrying the heaviest load. The article says all Vikram Pandit has to do is "cut out 20 percent of the balance sheet, fire thousands, cut $15 billion in costs. Geez, where to start?" He's announced a plan, but the potential results are uncertain. At the other end of the spectrum: Richard Fuld, of Lehman Brothers, which has fared relatively well, having written down only $3.3 billion. Its main task: shore up confidence. John Thain of Merrill Lynch, similarly, has some "image polishing" to attend to, which may become more urgent after the second quarter, which likely will be rough.

For more:
- here's the Forbes article

Related Articles:
Will CEO turmoil continue?
CEO Watch 2008

Cayne vs. Greenberg at Bear Stearns

Wed, 07 May 2008 06:59:58 -0400

Jimmy Cayne and his predecessor Ace Greenberg worked together for 40 years at Bear Stearns. Toward the end, many saw Ace, one of Wall Street's Grand Old Men, as a mentor to Jimmy, who was destined to take over as CEO. The truth was that the relationship was always uneasy. And now, after the near-collapse of the firm, an outright feud has erupted, according to the New York Times. Ace says Jimmy ignored his advice as the credit meltdown hit home. Cayne says that's not so. He has noted to colleagues that it was Ace who chaired the risk committee. This much is clear: Ace seems to have fared a lot better. He has been retained, at 80, as vice chairman emeritus at JPMorgan Chase. Jimmy, as the Times notes, has become "a public piñata," batted around by all. I still recall that incredible Wall Street Journal piece that recounted some of his pot-smoking exploits.

For more:
- here's the Times article

Citigroup reaches out to... HP?

Wed, 23 Apr 2008 06:59:57 -0400

Hewlett Packard to the rescue? Vikram Pandit, CEO of Citigroup, is reaching out to HP executives for insight into how to stand firm in the face of investor pressure to spin off key assets. The talk seems to be on IT issues, and how they can stitch various units into something whole. HP, of course, went through something similar when Mark Hurd became CEO. He resisted pressure to spin off the PC-making group. Just as Pandit is under pressure to spin out portions of the Citi empire. So will Hurd, at some point, join the Citigroup board? It's unclear if the two CEOs have met face to face, but clearly, Pandit is not above seeking advice wherever he can get it.

For more:
- here's the Financial Times article

Will CEO turmoil continue?

Fri, 18 Apr 2008 06:59:56 -0400

We've seen a lot of high profile CEO lose their jobs. Stanley O'Neal. Chuck Prince. Jimmy Cayne. But at least one MarketWatch commentator thinks at least two other fairly big name CEOs ought to be similarly shown the door. He says that Ken Thompson, of Wachovia, and Kerry Killinger, of Washington Mutual, "were exposed as overhyped pedestrian CEOs this week." Ouch! PR folks, do something. Killinger was rapped for the $1.1 billion loss and the required dilutive $7 billion capital infusion from private equity investors. Thomson was pilloried for the disastrous Golden West purchase. The jury remains out on several CEOs, including Ken Lewis of Bank of America, who's betting big on Countrywide.

For more:
- here's the commentary

SPOTLIGHT: 2008 CEO Watch

Thu, 20 Mar 2008 07:59:52 -0400

So far in 2008, we've already seen a continued rise against the odds at Goldman Sachs, as well as an epic fall from grace in the form of former Wall Street giant Bear Stearns. Regardless of what's already transpired though, these eight CEOs are likely to make headlines from now until the end of the year, and perhaps well beyond. View slideshow

Shareholders to take on Wall Street banks?

Wed, 12 Mar 2008 07:59:55 -0400

Is a shareholder revolt in the making against top banks? Well, that's a possibility, notes the Financial Times. We'll get an idea next month, when Morgan Stanley holds its annual meeting. So far, CtW Investment Group is the only group that is making any noise. It may seek to prevent John Mack from holding the CEO and chairman position, which would be seen as reasonable if there weren't a credit crisis. But heads of top CEOs already have rolled. That may be enough for most shareholders for now. It's possible we'll see more campaigns to withhold votes from directors. Certainly, audit committees could be in for some bad publicity. No one would be surprised if shareholders suits were lodged, citing the recent stock drops.

For more:
- here's some background from the Financial Times

Related Articles:
Banks face activists in proxy season. Article
SPOTLIGHT: 3 Blind Mice. Read
O'Neal joins illustrious ranks of ousted CEOs. Article

Goldman Sachs co-presidents fare well

Mon, 10 Mar 2008 07:59:55 -0400

Lloyd Blankfein, Goldman Sachs' CEO, made $68.5 million last year in salary, bonuses and grants. But his co-presidents, Gary Cohn and Jon Winkelried, fared almost as well. They each made $67.5 million. David Viniar, Goldman's chief financial officer, made $57.5 million for 2007 and Edward Forst, chief administrative officer and head of the investment management business, earned $44 million. So the Goldman guys really did well. Especially compared to the several CEOs who lost their jobs. Some other CEOs waived bonuses for 2007 but grants from previous years were valued high. No point in feeling sorry for them.

For more:
- here's the Financial Times article

Related Articles:
Blankfein leads Goldman Sachs to new heights. Article
The perks of being CEO. Article
Promotions at Goldman Sachs; Cohn in spotlight. Article

The value of denying executives bonuses

Fri, 01 Feb 2008 06:59:54 -0500

The trend toward denying executives others that the top dog bonuses continues to gather steam. CEOs at Morgan Stanley, Bear Stearns and UBS have all agreed to give up their 2007 bonuses for obvious reasons. When it comes to sub-CEO executives, some are having restricted stock or options foisted upon them. These grants could really pay off at Merrill Lynch. Financial News Online reports Greg Fleming, president, got 1.2 million options. Robert McGann, vice-chairman, got 971,346 options and Rosemary Berkery, general counsel, got 593,600. They'll vest starting in January 2010. All in all, it's hard to argue with the approach. When the firm loses money, these sorts of moves are inevitable. For many, they amount to something of a handcuff. But if another firm really wants them, they'll work something out.

For more:
- here's the article