Financial Services - Mahony Partners

Mar

2012

Welcome to Goldman Sachs, Mr. Siewert – Update

In an earlier post, I suggested that Goldman send a note to its employees to respond to Greg Smith’s public resignation letter. It appears my advice was taken. Goldman chiefs Lloyd Blankfein and Gary Cohn did indeed send a memo (perhaps I'll send them a large bill). It was very well done. Here’s why: It used data, not opinion. Goldman was able to cite its employee survey data to demonstrate widespread support for ... Read More

Mar

2012

Welcome to Goldman Sachs, Mr. Siewert

Crisis, Financial Services

The public resignation letter by Greg Smith, a Goldman executive, is lighting up the blogosphere. It’s certainly not the way Jake Siewert imagined spending his first day on the job as head of communications. As a candid, personal confession from a Goldman insider, the letter is very damaging. It counters the notion that Goldman has been a united force, its p... Read More

Mar

2012

Waiting for Bob Diamond’s Bonus, Part 3: The Reckoning

Financial Services, Taking & Managing Risk

Barclays announced Bob Diamond's pay package this morning when it filed its annual report. As expected, the news media is pouncing on not only the bonus, but the bank's poor performance and regulatory woes. Here's the FT's take: "While overall pay is lower this year – largely because of a sharp fall in profits at Barclays’ investment banking division – it is nevertheless likely to stir up the debate around banker bonuses. "The revelations follow a difficult few weeks... Read More

Mar

2012

Waiting for Bob Diamond’s Bonus – Part 2

Financial Services, Taking & Managing Risk

It looks like this could be the week when Barclays reveals the compensation package for CEO Bob Diamond, according to reports in the press. The reports speculate on the likely amount he’ll be paid, while revisiting all the negative themes about bank pay, performance and risk. Unfortunately for Barclay's, there is little it can do but wait until the figures are released. Until then, its open season for reporters, comment writers, bank analysts, governance watchdogs and other pundits. Barclays could have avoided this ugly scene by a... Read More

Mar

2012

Win Neuger’s Long Reign and Hasty Exit

Financial Services, Taking & Managing Risk

Win Neuger was hastily shown the door yesterday, ending his tenure as CEO of PineBridge Investments, the former asset management group at AIG. Neuger joined AIG from Bankers Trust Company in 1995. This news didn’t make many waves, but it’s odd in several ways. Neuger’s last day as CEO was yesterday, the same day the news was announced, which is an unusually quick exit for a CEO. David Jiang, formerly of Bank of New York Mellon, was named the new CEO. Neuger will serve as vice chairman. Sudden executive movements are generally discouraged in the asset management world becaus... Read More

Mar

2012

Goldman’s next PR Chief

Financial Services, Taking & Managing Risk

Somewhere inside Goldman Sachs a managing director in human resources is anxiously leafing through a stack of resumes looking for a candidate to replace PR chief Lucas van Praag, who retires at the end of March. There’s been little news since Lucas’s departure leaked a month ago and a former Treasury staffer was tipped as his likely replacement, suggesting the firm hasn’t yet inked a deal. So before Goldman writes a big check for his signing bonus and measures his office for new carpet and curtains at 200 West Street, there is time to reflect on just what sort of PR s... Read More

Feb

2012

Waiting for Bob Diamond’s Bonus

Financial Services, Taking & Managing Risk

We don’t yet know how much Bob Diamond was paid for running Barclays last year. We do know the bank will cap cash bonuses at £65,000 (about $100,000), joining a growing list of banks that have bowed to shareholder and public pressure to curb payouts. Barclays could have reported Diamond’s compensation yesterday, but it decided to stick with the tradition of announcing it when the bank’s annual report is released next month. By waiting, Barclays missed a chance to underscore its commitment to shareholder value, and it left Diamond himself in t... Read More

Feb

2012

Liam McGee needs a communication strategy – fast

Financial Services, Taking & Managing Risk

Insurance company earnings calls are normally staid affairs. But Hartford Financial Group had a sudden burst of excitement yesterday as its largest shareholder, hedge fund titan John Paulson, joined the call. He hammered CEO Liam McGee for not being more specific about his plans for increasing shareholder value at the company, which saw its shares sink by 39% last year. Paulson said: "I know you’re doing a strategic review but there’s no slide talking what about what the potential would be, just that there’s challenges. Goldman Sachs came out with, I think, a very goo... Read More

Feb

2012

Defending Goldman Sachs: The 5 reasons its PR has triumphed under Lucas van Praag

Advertising, Crisis, Financial Services, Media

Lucas van Praag, the longtime communications chief at Goldman Sachs, is stepping down. To those of us in the PR trade, this news yesterday was much more significant than Facebook's IPO filing and the legion of twentysomething millionaires it will spawn. Van Praag has done a brilliant job of defending Goldman and handling the outsized egos that walk its halls. Goldman is smart, arrogant, highly successful and envied – qualities that make it a PR challenge, every day. No one has handled it better. (Disclosure: I’ve known Lucas for a long time, and sought his help whe... Read More

Jan

2012

How’s that again, Mr. Rubenstein?

Financial Services

David Rubenstein wants to have it both ways. He’d like us to believe that he’s a reasonable fellow, ready to pay more tax if Congress would only change the law, according to a New York Times report:. “If you change the law, we’ll pay the taxes,” Mr. Rubenstein said to scattered applause during a debate at Davos on the future of capitalism. He was referring to a provision of the United States tax code that allowed people in the private equity industry to treat their income as capital gains and pay a lower rate. He conveniently forgets to mention his consistent opp... Read More