THE ACCA’S FAVOURITE NEWSPAPER (probably)
- Since 2007
P1 STUDENT PASSES EXAM !!
By PAUL MERISON
Blank quits Lloyds
By PAUL MERISON
Sir Victor Blank has retired from Lloyds Banking Group.Blank was Chairman of Lloyds, but “went before he was sacked”, according to Lloyds insiders. Blank had been heavily criticised for being the main person behind the takeover of HBOS, which had far worse losses than Lloyds predicted. He is now being held accountable for this decision. Win Bischoff has now taken over as Chairman. No doubt the Nominations Committee began their succession planning process some time ago, as they must have known Mr. Blank was likely to go.
P1 student Fred Goodwin
has passed his exam! When asked what advice he had for other students, Mr Goodwin said that students should “read The P1 Times” as it helped to see things on the course in the real world. “Some of the theories looked ok in the Notes, but when I attempted questions it was
hard to apply them. Seeing news articles that mentioned the P1 syllabus areas made doing the questions and understanding the theories so much easier”, Mr Goodwin explained. He found the Royal Bank of Scotland articles of most interest, apparently…….
Date today 14/06/10
NEWS Not A-Grade
Michael Grade, who joined ITV in 2007 as Executive Chairman, decided to give up the CEO role and remain as Chairman only. However, ITV’s succession planning failed to attract the right person, so they changed plans and found a new Chairman first, and then a new CEO. This follows a disastrous 2008 when ITV lost £2.7bn. ITV’s Annual Report explained the noncompliance, stating the need for firm leadership at a time when the tv industry was in crisis, with advertising revenues falling, and greater competition from other companies and the Internet. But such breaches of best practice are hard to justify after such bad performance, and activist investors had demanded change.
Not so Rosey at M+S
Once labelled the hero for improving M+S, Sir Stuart Rose is finding life rather more difficult now. The former CEO became Executive Chairman in 2008 (i.e. Chairman and CEO) after succession planning failed to find a Chairman to replace the retiring Lord Burns. Several institutional investors complained and tried to block that move – some claiming it was unethical to breach the Code – but even the largest had relatively small shareholdings below 5%, and their efforts failed due to their “small stakeholder voice”. Now, 2 years on, and with M+S performance below expectations, the are once again raising their voice – and Rose has been forced to drop one of the roles, giving up the CEO role (Marc Bolland is taking over). Institutional shareholders increased their stakeholder voice by making their concerns known to groups such as the Association of British Insurers (ABI) or the National Association of Pension Funds (NAPF). These bodies represent most of the largest institutional investors on the Stock Exchange, and may be more likely to get the Board’s attention.
Succession Planning at Deutsche Bank
Deutsche Bank announced recently two new members of their management board. Both are seen as potential successors to current CEO Joseph Ackermann. It seems they are keen to have the next man in place to ensure a quick, clean handover (good succession planning)… but this may be a message to Ackermann that he is on the way out….
Date today 14/06/10
NEWS The X Factor
For years, there was a fear that directors all looked out for each other and made sure everyone had a few seats on boards and got well paid. But with the Combined Code that has all stopped. Or has it……. During 2008, the Chairman of BP was Peter Sutherland. The Chairman of RBS was of course Tom McKillop. Sitting on the Remuneration Committee at RBS was … Peter Sutherland. Sitting on the Remuneration Committee at BP was …. Tom McKillop. And since this committee decides the pay of the Execs...