Tag: Corporate Governance

Boeing Requires An Overhaul

Boeing Requires An Overhaul

Boeing (BA) senior management and Board requires an overhaul. We first wrote that Boeing ought to replace its CEO and Board back in September 2020 and as recently as February 2021, well before Ryanair CEO Michael O'Leary voiced his opinion. Boeing is a Technology company that would do well to look to the Technology sector … Continue reading Boeing Requires An Overhaul

Corporate Boards Need To Be Overhauled

Corporate Boards Need To Be Overhauled

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

Twitter Made Its Own Bed

Twitter Made Its Own Bed

Years of weak management and weak corporate governance are the reasons why Twitter is in the mess it is in. Twitter has been social media's weak sibling since its inception, trailing some combination of Facebook/Instagram and TikTok for over a decade. The fact that Twitter is in the position it is in is hardly a … Continue reading Twitter Made Its Own Bed

SolarWinds Fallout Is Just Beginning

SolarWinds Fallout Is Just Beginning

16 months ago we told you that SolarWinds (ticker: SWI) would not recover from the cyberattack levied against it that allowed cybercriminals to use infected SolarWinds software to view the source code of hundreds if not thousands of SolarWinds' corporate customers. SWI shares have yet to recover from what was at the time (December 18th … Continue reading SolarWinds Fallout Is Just Beginning

The Stock Buyback Scam

The Stock Buyback Scam

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

CEO Compensation: What Happened To “Pay For Performance”?

CEO Compensation: What Happened To “Pay For Performance”?

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”?

CEO Behavior & Opportunity Cost

CEO Behavior & Opportunity Cost

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

The SEC Plans to Further Regulate 10b5-1 Plans

The SEC Plans to Further Regulate 10b5-1 Plans

This is a win for investors and could potentially be a "Big" win if new 10b5-1 regulations are tough. Too frequently CEOs and named executives skirt around insider trading rules by way of 10b5-1 plans - especially the modification of existing 10b5-1 plans. Last year we called out Moderna (MRNA) CEO St├ęphane Bancel for this … Continue reading The SEC Plans to Further Regulate 10b5-1 Plans

“G” Is Where The Value Is In ESG

“G” Is Where The Value Is In ESG

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

CEO Quality Matters. Warren Buffett Agrees.

CEO Quality Matters. Warren Buffett Agrees.

Over the weekend Warren Buffett stated that poor leadership is the greatest risk facing companies. Mr. Buffett is preaching to the choir and knows a thing or two about bad leadership having lived through scandal and CEO turnover at Wells Fargo while Berkshire was a large holder. Coca Cola - another Berkshire holding - hasn't … Continue reading CEO Quality Matters. Warren Buffett Agrees.