Operating at the Intersection of Technology and the Capital Markets
Tag: Corporate Governance
Board members ought to be asking themselves "Is my CEO and executive team capable of leading the Company in a long-term interest rate environment where the Fed Funds rate sits at approximately 3%?" This is especially true if, like me, you believe that CPI is not going to 2% any time soon and that the … Continue reading How Many CEOs and CFOs Have Deep Experience Leading In A Non-ZIRP Environment?
If you have enjoyed our writings and research on CEO Personality Analytics, you may enjoy the Apple TV+ documentary about former Nissan Renault Chairman and CEO Carlos Ghosn. We link to the trailer below (view this article on our Website to view the trailer and the recent Forbes interview with Mr. Ghosn). We have also … Continue reading CEO Personality Analytics – The Case of Carlos Ghosn
One lesson I've learned over the past 28 years in the Capital Markets is that companies should not feed into hype in order to bolster their Enterprise Value. Rather than feed into hype, CEOs and management teams ought to focus on driving the business and educating investors. The average institutional investor does not understand the … Continue reading Public Company CEOs Should Not Feed the AI Hype
Elon Musk's Twitter announced a new CEO and Larry Fink's BlackRock (tkr: BLK), is working to identify Fink's replacement. So long as Messrs. Musk and Fink are involved with Twitter and BlackRock respectively, they will be setting strategy and keeping their finger on the pulse if not involved with the day-to-day minutiae. Musk named NBCUniversal's … Continue reading Twitter & BlackRock: Change In Name Only
Below are two paragraphs from META's earnings release. The language is from the "CFO Commentary" section and is symptomatic of a company that is operationally lax. It may be too late for META to find religion around operational excellence. Operational efficiency is a skill set that is developed over years, it is not a cost-cutting … Continue reading Meta Is Operationally Reactive
We were critical of Adobe's (ADBE) acquisition of Figma for a few reasons. These elements can be applied to the analysis of any M&A transaction. Valuation: 50x revenue is a rich valuation no matter how you slice it. I don't care how unique Figma's product offerings may be or how competitive the deal may have … Continue reading Analyzing an M&A Transaction
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
"G" is the most important letter in "ESG" investing. "G" or "Governance" refers to the men and women who comprise corporate management teams and Boards. Management - the CEO in particular - matters a great deal as to the long-term success of any company. Too frequently CEOs and Boards put Executive Compensation ahead of corporate … Continue reading CEOs That Put Themselves First
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
If we have said it once we have said it a thousand times: "G" is what matters in ESG investing. The "G" stands for Governance. Nothing is more determinant to a company's success than the people who lead that company, beginning with the CEO (which of course is the reason why we started CEORater 5 … Continue reading “G” Matters. Throw Out The “ES”.
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