Technology, Capital Markets, Corporate Governance, Leadership, Entrepreneurship
Tag: Corporate Governance
Fortune 500 real estate title insurer First American Financial Corp. (ticker: FAF) leaked hundreds of millions of documents related to mortgage transactions dating back to 2003. CEOs and Boards Need to Make CyberSecurity A Top Priority We have previously taken the position on our podcast and in this newsletter that CyberSecurity is a C-level/ Board-level … Continue reading CyberSecurity Should Be A CEO and Board-level Priority
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
Could we have predicted that Elon Musk's restlessness would have led to his founding of (SpaceX) even though he more than had his hands full with Tesla? How about his latest company - "The Boring Company" - could its founding have been predicted? The answer is "maybe". Are we surprised by Musk's emotionless approach to … Continue reading Predicting CEO Actions and Financial Outcomes Based On CEO PersonalityPremium
I’m puzzled by the mess that is GE. The Company recently removed former CEO John Flannery after only 14 months at the helm only to replace him with a Board member (Larry Culp). I was a fan of Flannery’s effort to decentralize operations and to divest non-strategic businesses. However, I did not agree with all … Continue reading Boards: Perform Due Diligence on CEO Candidates Upfront. GE Is Still Cleaning Up Its Mess.Premium
"CEO Tenure Is Getting Shorter.." the Wall Street Journal writes. Research indicates that the optimal tenure is 4.8 years. Median CEO tenure at large cap companies was five years in 2017, one year less than the median in 2013 (Equilar). To quote the article, "Xueming Luo, professor at Temple University’s Fox School of Business and … Continue reading CEOs Must Be Intellectually Engaged to Remain in the ChairPremium
Successful CEOs possess each of the attributes described below. This is an unscientific analysis based upon my prior experience covering and acquiring companies (equity research analyst; M&A executive) as well as my current role as founder of CEORater. It is important to recognize that while these attributes are qualitative in nature they do impact the … Continue reading Successful CEOs Share These Six Attributes (hint: Communication is Key)
To Centralize is to Oppress This article focuses on centralized business models and why they don't work. Ben is our anti-hero who learns this lesson the hard way. We Detest Centralized Business Models for Several Reasons: 1.) The centralized model assumes that corporate headquarters knows best. Could there be a more arrogant assumption? For any … Continue reading Centralized Operating Models Don’t Work. Even for The Narcissist CEO.Premium
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
