Taking & Managing Risk - Mahony Partners

Apr

2012

The Rise of the Undead: E.F. Hutton Returns

Advertising, Financial Services, Taking & Managing Risk

E.F. Hutton is set to return to the brokerage world, according to a report in The Wall Street Journal. Backed by former Hutton executives, the long-dormant name is being revived and the firm is set to launch later this year. E.F. Hutton’s return is a measure of how badly damaged major financial brands are in the aftermath of the financial crisis. Although Hutton was tarnished by a check-kiting scandal in the 1980s, the brand retains wide public recognition and favorability. Given the public’s dismal regard for financial firms today, it wouldn’t surprise me to see other dormant ... Read More

Apr

2012

Launching Sony’s Turnaround

Media, Taking & Managing Risk

Kazuo Hirai just might have the toughest job in the corporate world. Named CEO of Sony in February, his task is to turn around the struggling electronics conglomerateafter years of strategic drift and financial losses. He’ll have to revive the brand, excite consumers with new products and revamp operations – all while competing with nimble global giants like Apple and Samsung. That’s a tall order. In a corporate turnaround, it’s vital that the CEO communicate clearly and with convict... Read More

Apr

2012

What the Best Buy Announcement Doesn’t Say

Crisis, Taking & Managing Risk

The announcement by Best Buy Co. that its CEO Brian Dunn resigned is significant for what it doesn’t say. Although it was awkwardly announced just as the stock market was opening, the company’s news release was direct, brief and included positive comments from Dunn and interim CEO Mike Mikan. The statement was also quick to defuse any suggestion of a broader conflict or new problem that sparked Dunn’s exit. But the statement said nothing about the company’s future strategy, which suggests big changes could be in the offing. Best Buy’s business model has been under strain ... Read More

Apr

2012

Throwing Softballs at Henry Kravis

Financial Services, Taking & Managing Risk

I must have missed this Reuters interview with KKR co-founder Henry Kravis last week, which isn’t too surprising because it didn’t make many waves. Based on an interview with Reuters Editor-in-Chief Steven Adler, it is the very definition of a puff piece. The article barely touched on whether Kravis believes the favorable tax treatment enjoyed by private equity should be allowed to continue: Kravis didn't say what he thought the tax rate on carried interest should be, though the company has said many times that an increase in the tax rate would be negative for the firm and its inve... 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

It’s All Business on the Groupon Investor Call

Taking & Managing Risk

Three months after its IPO, Groupon reported earnings that were good but not as good as many expected, and the shares tumbled. You might expect the management team to be rattled and strike a defensive tone on its conference call with investors. Instead, the call was all business: detailed, candid and orderly. Groupon CEO Andrew Mason and CFO Jason Child took every question, walked people through the numbers and tempered their optimism with facts. The focus was on the business performance; the stock price was barely mentioned. That’s a big contrast compared to the technology boom of a dozen yea... Read More