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
Lost amidst the drama around Jes Staley's ties to convicted (deceased) sex offender Jeffrey Epstein is Staley's poor performance as Barclays CEO. This speaks to Barclays' weak Board of Directors and lack of corporate governance. One need look no further than the numbers. Barclays has under-performed during Staley's tenure. Staley was groomed by JP Morgan … Continue reading Why Does Jes Staley Remain Barclays CEO?
When is the correct time to sell your company? Many entrepreneurs and CEOs struggle with this question. A blueprint unfortunately does not exist. Below are signposts we have observed primarily across Application Software, FinTech, InsurTech, Information Services, IT Services and Technology-Enabled Services. The company participates in a mature end market and continued growth is dependent … Continue reading Is It Time to Sell Your Company?
Tesla CEO Elon Musk's $2.3 Billion compensation package is an example of poor corporate governance and a self-serving Board (ACCESS Our Commentary HERE). For examples of how to run a business well and fairly compensate CEOs for performance - look no further than CoStar (tkr: CSGP) and SS&C (tkr: SSNC). Our CSGP and SSNC data … Continue reading Tesla’s $2.3 Billion CEO Compensation Package
CEO tenure is getting shorter and we believe a primary cause is less than optimal alignment between CEOs, Executive Team members and Corporate Boards. Alignment Scale Exercise On a scale of 1-10 (10 is best) where would you rate the level of alignment between yourself and your direct reports? Between yourself and your Board of Directors?You may … Continue reading CEO – Executive Team – Board (“CEB”) AlignmentPremium
The following 7 rules apply to public companies across a variety of industries - particularly to Enterprise Software, FinTech and Information Services companies. 1.) Make Your Numbers 2.) Regular, Transparent Investor Communication 3.) Drive Expanding Operating/EBITDA Margins 4.) Don’t Stockpile Cash 5.) Control Waste 6.) Use Debt as a Tax Shield 7.) Board Composition – … Continue reading 7 Rules for Keeping Activist Investors Away
Personality Analytics Holds the Key as to Why Apple Was More Innovative Under Steve Jobs than Tim Cook Apple has lost its creative mojo under Tim Cook. Incremental product enhancements have become the norm, replacing a time when revolutionary new products, space age design and landmark advertising was the standard. What changed? Look no further … Continue reading Steve Jobs vs. Tim Cook – Innovator vs. Operator – It’s In Their DNA
1.) Be Bold: Similar to VCs, public investors want to invest in a bold vision. (See Tesla). Why does TSLA enjoy a premium valuation to other Auto OEMs? Answer: Musk’s vision and spin. 2.) Don’t Be Bullied by Investors – Dictate Your Story: Tell the Street you plan to take margins down temporarily to pursue “X” initiative. … Continue reading 3 Rules for Tech CEOs
It is true. Your CEO’s personality influences his/her ability to scale (among other things). It may seem self-evident. One’s intuition may suggest such a relationship between personality traits and workplace effectiveness. Well, it is more than a hunch. Published research demonstrates a relationship between CEO personality traits and company performance. Gow, Kaplan, Larcker and Zakolyukina … Continue reading Your CEO’s Personality Influences His/Her Ability to ScalePremium
We have been critical of Xerox’s (tkr: XRX) senior leadership since 2012 when I wrote a letter to former Xerox CEO Ursula Burns advocating a strategic M&A plan (read my letter here). We agree with Messrs. Icahn and Deason that XRX put itself up for sale. Listen to our recent CEORater Podcast on the subject: … Continue reading We’ve Been Critical of Xerox Since 2012