Operating at the Intersection of Technology and the Capital Markets
Tag: Board of Directors
As a follow-up to our two recent Adobe (tkr: ADBE) articles that were highly critical of Adobe CEO Shantanu Narayen as it relates to the Figma acquisition, we highlight for you Adobe's Board of Directors who signed off on the Figma deal and its outrageous 50x forward ARR valuation. Here is Adobe's "go along to … Continue reading Adobe’s Oversized Board Nodded Its Collective Head In Approval As It Relates To The Figma Deal
Too frequently companies execute M&A transactions not because a given acquisition strengthens the acquiring company's competitive position or enhances customer value, but because the acquired company could help boost CEO compensation of the acquirer by driving some combination of higher total revenue growth, higher EBITDA, higher bookings and/or a higher stock price. Today's announcement that … Continue reading When CEO Compensation Is The Primary M&A Driver
Corporate Governance practices are flawed in our view as it relates to independent Board members. Corporate Boards are littered with outsiders who know little about the industry or the company for which they serve on the Board. My view has always been that smart investors bet on Management Teams. I would prefer a Board that … Continue reading Corporate Boards Need To Be Overhauled
Prior to the 2008-2009 Financial crisis, stock buybacks were typically used by management teams to offset options dilution and to acquire undervalued company shares. Today, companies primarily use stock buybacks to goose the value of CEO options packages as well as to goose the value of shares held by CEOs and large institutional holders. The … Continue reading The Stock Buyback Scam
CEORater has published a number of CEO compensation studies over the years. The truth is we probably do not allocate sufficient weighting to compensation in our CEOs of The Year awards. The Wall Street Journal published an insightful piece on Technology Founder/CEO compensation, which we have previously written about. Our view is that public company … Continue reading CEO Compensation: What Happened To “Pay For Performance”?
NASDAQ's (ticker: NDAQ), Board diversity proposal is one that puts gender and race ahead of meritocracy. Why should someone's gender or race matter regarding Board selection? Also, why should Board member race and gender be tracked and reported? Where does a prospective Board member's career experience fit into this equation? A Board member candidate's reputation … Continue reading NASDAQ Is Social Engineering Boards
CEOs ought to operate their companies in such a manner that their integrity and work ethic may not be questioned. Take the example of Unity (ticker: U) CEO John Riccitiello who is named in this lawsuit. If the allegations are true, it speaks to horrible behavior on Mr. Riccitiello's part. Setting the allegations aside for … Continue reading CEO Behavior & Opportunity Cost
I've yet to be convinced of the value proposition of incorporating ESG into the investment decision-making process. What are the definitions of the "Environmental" and "Social" elements of ESG and how are each directly correlated to alpha generation? You are preaching to the choir as it relates to "Corporate Governance" - the "G" in ESG. … Continue reading “G” Is Where The Value Is In ESG
Elon Musk is happy for prospective Tesla customers, sell-side analysts, buy-side investors and his Twitter followers to believe that Tesla vehicles are fully autonomous when that could not be further from the truth (see our earlier article regarding Autonomous vehicle permits). This fallacy helps promote the narrative around Musk as a genius entrepreneur (newsflash: Musk … Continue reading The Blood Is On Elon Musk’s Hands
We have been consistently critical of Boeing's (tkr: BA), Board of Directors and CEO David Calhoun (links to those articles below). Should Boeing's Board decide to replace Mr. Calhoun (it ought to replace itself first), we recommend that the Board look to the IT Services industry for a replacement CEO. The airplane design and manufacture … Continue reading Boeing Should Look To The IT Services Industry For A New CEO
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