Results for: Corporate Governance

Edge One Capital, a significant BuzzFeed investor, has sent a scathing letter demanding a complete overhaul of the company’s board and governance structure. The letter accuses BuzzFeed CEO Jonah Peretti of operating with little accountability and criticizes the board’s lack of relevant experience and ineffective oversight, particularly in the wake of a disastrous acquisition and continued revenue decline. Edge One Capital calls for a ‘one share, one vote’ structure, removal of anti-shareholder provisions, and a board comprised of directors with relevant industry expertise.

News Corporation (NWS) is facing pressure from its largest shareholder, Starboard Value LP, to eliminate its dual-class share structure. Starboard argues that this structure, which gives more voting power to the founder’s heirs, is not in the best interests of shareholders and is detrimental to corporate governance. The move comes as News Corp’s stock has struggled to keep up with its perceived value.

Billionaire investor Carl Icahn, known for his outspoken criticism of corporate boards and their oversight of CEOs, finds himself in the spotlight as the SEC investigates his company’s financial practices. This situation echoes concerns he raised in 2009 about the lack of accountability in corporate governance, which he blamed for the financial crisis. Icahn’s own company, Icahn Enterprises, faces scrutiny for its disclosure practices and use of company shares as collateral for personal loans, highlighting the very issues he previously criticized.

Lalit Khaitan, the founder of Radico Khaitan, has transformed the Indian spirits market with his unwavering determination, innovative spirit, and strategic leadership. Radico Khaitan’s portfolio boasts well-known brands like Magic Moments, 8PM Premium Whisky, Rampur Indian Single Malt Whisky, and Regal Talon Whisky, solidifying its strong presence in the industry. Under Khaitan’s guidance, the company has expanded to over 85 countries, achieving a market capitalization of approximately Rs 23000 crore. His innovative products, like ‘Happiness in a Bottle’ gin, have garnered immense popularity, resulting in a significant increase in publicly traded shares. With an estimated net worth of $1 billion, Lalit Khaitan’s success story exemplifies the power of hard work, innovation, and ethical business practices.

In FY24, a significant majority of India’s biggest listed companies entrusted their financial scrutiny to the six leading audit firms known as the ‘Big 6.’ These firms, namely Deloitte, EY, Grant Thornton, KPMG, MSKA & Associates, and PwC, collectively handled a substantial portion of the audits for companies listed on the Nifty 500 and NSE indices. Their dominance has grown in recent years, with the Big 6 now overseeing 66% of Nifty 500 companies and 32.5% of all NSE-listed companies.

A survey by J.D. Power reveals that Japanese retail investors are placing greater importance on corporate governance when making investment decisions. Key areas of concern for shareholders include shareholder rights, timely disclosure, board oversight, and stakeholder engagement.

Ben & Jerry’s independent board has asserted its unwavering commitment to overseeing the brand’s social mission, even in the event of a potential sale or spin-off by parent company Unilever Plc. This assurance comes amidst Unilever’s announcement of its intention to divest its ice cream division, which includes Ben & Jerry’s, as part of a broader strategic shift to enhance performance. The board, led by Anuradha Mittal, emphasized the importance of maintaining a robust framework to safeguard the brand’s progressive values and highlighted its instrumental role in driving Ben & Jerry’s impressive growth trajectory.

The recent announcement of China’s “Nine-Point Guideline” has sparked hopes among investors for the improvement of corporate governance in the country. This, combined with a reshuffle at the Securities Regulatory Commission and a push for capital returns, indicates a positive shift in the government’s approach towards the equity market. The implementation of these reforms is expected to create new opportunities for investors, with large-cap Chinese stocks offering a significant upside potential. The Franklin FTSE China ETF (FLCH), which focuses on lower-priced offshore listings, is well-positioned to benefit from this positive momentum.

Shareholders of Goldman Sachs and Bank of America voted against proposals to divide the CEO and chairman roles at their respective banks. Proxy advisors and the Norwegian sovereign wealth fund had urged shareholders to support the moves, arguing for stronger corporate governance. Despite receiving increased support from last year, the proposals failed to gain a majority, with 33% of Goldman shareholders and 31% of BofA shareholders voting in favor. Goldman’s governance committee maintains that the current structure, including a strong lead independent director alongside the chairman-CEO role, is most effective. BofA shareholders also approved all management proposals, including on executive compensation, while rejecting all shareholder proposals.

Grupo Rotoplas, leading water solutions provider in the Americas, has reported its unaudited first quarter 2024 results. The company has navigated weak demand and adverse exchange rates in certain regions, while maintaining profitability and expanding its solutions in others.