EQT Corp. (EQT), Healthways, Inc. (HWAY), and MEMC Electronic Materials, Inc. (WFR) announced plans in recent weeks to move toward enabling shareholders to elect directors to their boards each year, as companies in the U.S. continue changing their practices so that investors can have more frequent input. The energy company EQT Corp. said December 11 [...]
Tag Archives | corporate governance
EQT, Healthways, MEMC Move Toward Electing Directors Annually
December 11, 2012 in Corporate Governance, Daily Viewpoint
Chevron Demands Documents From Activist Investor: NYT
December 11, 2012 in Corporate Governance, Daily Viewpoint, GMI In the News
Last month Chevron subpoenaed Trillium Asset Management, which has sponsored numerous shareholder proposals at the oil and gas company over the years, the New York Times reported. Chevron demanded documents related to those proposals. The subpoena also asked for records of discussions Trillium had about these proposals with the media. It is part of a Racketeer Influenced [...]
U.S.-Listed Chinese Companies Likely to Go Elsewhere: FT
December 10, 2012 in Corporate Governance, Daily Viewpoint
Last week, the US Securities and Exchange Commission began proceedings against Chinese affiliates of the big auditing firms for refusing to produce audit papers on Chinese companies under investigation for suspected fraud. It looks increasingly likely that Chinese companies listed in the US will have to find a home elsewhere, the Financial Times said. The problem is that [...]
As Researchers Warn of Global Warming, Investors Can Measure Polluters
December 6, 2012 in Corporate Governance, Daily Viewpoint
Rising carbon dioxide emissions make it less likely that global warming will stay below the international goal of 2 °C, according to recent research. Investors can take steps to evaluate which companies emit such pollutants. “A shift to a 2 °C pathway requires immediate significant and sustained global mitigation,” an article in the scientific journal [...]
Romney Isn’t The Only Experienced One On Marriott’s Board
December 5, 2012 in Corporate Governance, Daily Viewpoint
Marriott International, Inc. said it appointed W. Mitt Romney to its board. He and many other directors at the Bethesda, Md.-based hotel company have already served for many years. The former presidential candidate and Massachusetts governor sat on Marriott’s board from 1993 to 2002 and from January 2009 to January 2011, the company said in [...]
Already High In Goodwill Assets, CME Does Another Acquisition
December 3, 2012 in Corporate Governance, Daily Viewpoint
CME Group (CME) said it completed its acquisition of the Kansas City board of trade (KCBT) for an undisclosed amount. Such deals have contributed to an unusually high proportion of the Chicago-based derivatives marketplace’s assets. CME explained that its agreement with KCBT, the futures market for hard red winter wheat, would provide the customers of [...]
HP’s Acquisition Record Suggests Habit, Not One-off Error, FT Says
December 3, 2012 in Corporate Governance, Daily Viewpoint
HP’s recent acquisition record, which has seen billions of dollars of writedowns, suggests not a one-off error of judgment but a habit, the Financial Times said in an editorial December 2. When CEOs chase the stock market as HP did with Autonomy, they run the risk of continually buying high and selling low – a [...]
Groupon’s Management Fails to Regain Credibility With the Market
November 30, 2012 in Corporate Governance, Daily Viewpoint
Groupon Inc. (GRPN) stock prices were falling early Friday after media reported that a board meeting about CEO Andrew Mason’s performance ended without any announcement of plans to replace him. The development is a recent example of continuing market skepticism about the daily deal website in the wake of questions about its accounting. “The board [...]
Held From U.S. Contracts, BP Still Shows Environmental Problems
November 29, 2012 in Corporate Governance, Daily Viewpoint
The U.S. Environmental Protection Agency announced on Nov. 28 that it has temporarily suspended BP from new U.S. government contracts, citing the energy group’s “lack of business integrity” with regard to the Deepwater Horizon explosion. Since the disaster in 2010, BP continues to show signs of problems ranging from its experiencing additional events that hurt the environment [...]
3D Systems Corporation: Doth They Protest Too Much?
November 28, 2012 in AGR, Corporate Governance, Daily Viewpoint, ESG Ratings & Research, Ratings Watch
By Damion Rallis, Senior Research Associate While the share price at 3D Systems Corporation (NYSE:DDD) continues its steady and impressive climb—up more than 200% since last November—a closer look at the company’s governance profile reveals several troubling indications that 3D Systems could be due for a reversal. Not only has the 3-D printing company been [...]
Slammed Again For Practices, Samsung’s Ownership Still Problematic
November 27, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Critics recently protested against Samsung Electronics Co., Ltd. (SEO:005930)’s alleged patent infringement and misuse of Chinese labor. We continue to warn about problems with the Korean consumer electronics giant’s corporate governance such as its ownership structure. The telecom network equipment maker Ericsson said it was suing Samsung for patent infringement after two years of talks [...]
GMI Ratings Governance Update | Moody’s Corp.
November 20, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Moody’s Corp. (MCO) could better safeguard itself from the business conduct failures that the Securities and Exchange Commission discovered in its second annual review of nine ratings agencies. The New York firm needs to take more steps to prevent its senior managers from abusing their powers. Without specifying names, the U.S. regulator said on Nov. [...]
GMI Ratings Governance Update | The McGraw-Hill Companies
November 19, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
The U.S. Securities and Exchange Commission published a review of credit ratings agencies’ business conduct that noted findings such as the failure to follow policies, keep records, and disclose conflicts of interest. While the regulator did not say who failed at what, financial filings show that the people who run The McGraw-Hill Companies (MHP), of [...]
GMI Ratings Governance Update | Wal-Mart Stores, Inc.
November 16, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Wal-Mart Stores, Inc. (WMT) confirmed this week that a previously disclosed investigation into bribery at its overseas units expanded into markets including Brazil, China and India. While it’s positive that the retailer is taking steps to examine allegations of such behavior, Wal-Mart could do more to improve the strength of the board that supervises such [...]
GMI Ratings Governance Issue | Vodafone Group Plc
November 15, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Vodafone Group Plc (VOD) adjusted its earlier estimates about the value of operations in Spain and Italy downward by £5.9 billion. While the British mobile phone giant clearly had no power to prevent the European crisis, its financial statements have contained warning signs that its managers tend to present their performance in the best possible [...]
GMI Ratings Governance Issue | Eastman Kodak Co.
November 14, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
As Eastman Kodak Co.’s (EKDKQ) cash dwindles and its creditors battle in bankruptcy court for repayment, some objected that the photography company’s CEO Antonio M. Perez continues putting his own interests first when it comes to compensation. Kodak said Nov. 12 that it managed to swap $317 million of existing debt and to obtain $476 [...]
GMI Ratings Governance Update | Olympus Corp.
November 13, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Olympus Corp. (OCPNF.PK) said it returned to a profit during the six months ended September 30, but the equipment maker also warned that it will sell fewer digital cameras than expected. Investors should prepare for the possibility of more surprises down the road. Olympus earned ¥8.015 billion during the six month period – boosted by ¥15.887 [...]
GMI Ratings Governance Issue | SandRidge Energy, Inc.
November 12, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
A shareholder in SandRidge Energy, Inc. (SD) said the Oklahoma oil and natural gas company should find new management, making complaints about various issues including “appalling” corporate governance. We have warned for more than a year about SandRidge’s high risk in this area, and its financial statements continue to reflect problematic accounting and board composition, [...]
GMI Ratings Governance Issue | Morgan Stanley
November 9, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Morgan Stanley (MS) said its co-president of institutional securities, Paul J. Taubman, will leave at year end, after which the other co-president Colm Kelleher will assume full responsibility for the division. As the New York financial services firm shuffles its senior managers, their board-level supervision remains above average in quality but leaves room for improvement. [...]
GMI Ratings Governance Update | Netflix, Inc.
November 8, 2012 in Corporate Governance, Daily Viewpoint, Flash Reports
Netflix, Inc. has taken the controversial step of using a poison pill to fend off the activist investor Carl Icahn. The Los Gatos, California-based video subscription company’s latest move is another example of how shareholders will find it challenging to make its board accountable, as we had already warned. CEO Reed Hastings and his team [...]