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Intel Chief Shakes Up Units

News Editor — Thu, 23 May 2013 18:24:29 +0000

The Sydney Morning Herald reports that new Intel CEO Brian Krzanich “has launched a sweeping company reorganization and created a unit aimed at growing its market share in mobile technology.” The shake-up not only puts most of the main product groups of the world’s biggest chipmaker directly under Krzanich’s control, it also hands its global manufacturing operation to new President Renee James. The reorganization marks Krzanich’s first step in making Intel more focused and more agile. As for James, past Intel presidents have been responsible for managing the manufacturing operations. James will also spearhead corporate strategy and planning. “Her previous job as Intel’s software chief has been taken over by Doug Fisher,” notes the newspaper, “a senior executive from that group.”

Corporate Security’s Weak Link: CEOs

News Editor — Thu, 23 May 2013 18:21:49 +0000

The Wall Street Journal warns that the biggest threat to corporate security could be the CEO. “As they seek ways to access sensitive corporate and personal data,” states the Journal, “cyber-attackers are increasingly targeting executives.” Security professionals say such top bosses, who are often exempt from companywide security rules, are more likely than rank-and-file staffers to open e-mail or click on links that can expose their companies to theft of proprietary data, intellectual property, or personal information. According to a newly released Verizon report, executives top the list of employee categories targeted in so-called social-engineering attacks. Even the handing out of business cards can put companies in danger these days. “There is a robust black market for executive credentials, including mundane information such as title and e-mail address, because those details give attackers a hook into a person’s network,” notes the Journal.

Zale Taps Rival’s Ex-CEO as New Chairman, Shares Jump

News Editor — Thu, 23 May 2013 18:19:05 +0000

Reuters notes that Zale Corp. on Wednesday named Terry Burman, the former CEO of its biggest competitor, as its new chairman. Burman was chief executive of Kay Jewelers’ parent Signet Jewelers Ltd. from 2000 to 2011. During that time, he oversaw large U.S. market share gains. He is due to take up the Zale’s chairmanship post next Friday.

Companies Share Energy Efficiency Secrets

News Editor — Thu, 23 May 2013 18:16:39 +0000

USA Today states that more than 35 major companies–ranging from Macy’s and Walgreens to General Electric and HEI Hotel & Resorts–have pledged to reduce their energy use 20 percent by the end of the decade and share their strategies as part of a federal program that is releasing its first-year results this week. Bob Holesko, vice president of facilities at HEI, says his company saves $5 million a year on utility bills thanks to such retrofits as programmable thermostats and motion sensors on stairwells to keep lighting dim when not in use. Meanwhile, Walgreens is building a store in Evanston, Ill., that aims to produce as much energy as it uses. It will boast 250 rooftop solar panels, two wind turbines, and geothermal wells for heating and cooling. In total, more than 110 partners–including companies, schools, and entire cities have signed on to the voluntary Better Building Challenge since its fourth-quarter 2011 launch. Combined, they have created at least 50 projects to showcase their strategies in just the first year.

Companies Donate More Than Cash for Tornado Relief

News Editor — Thu, 23 May 2013 18:06:28 +0000

In the aftermath of Monday’s tornado in Oklahoma, CNNMoney reports that a number of companies have gone beyond writing a check and have offered assistance through the use of their equipment, staff, buildings, and other in-kind donations. At Chesapeake Energy, for instance, the oil and gas giant has provided a crane and a couple of front-end loaders to help clear rubble from the disaster area. “They’re being manned by Chesapeake employees,” notes CNN, “working on the company’s dime. Chesapeake has also provided about a dozen generator-powered flood lights for the rescue operations.” Verizon, meanwhile, has established a mobile command center and is offering emergency phones and charging stations. A local LaQuinta Inn is giving free rooms to those without a home, while a Home Depot store has become a shelter for homeless pets. Finally, CNN notes, “a local branch of T&W Tire has had up to a dozen service trucks in and around the disaster area, offering free fixes for relief vehicles with tires damaged from all the debris. As of Tuesday morning, the trucks had fixed more than 150 vehicles.”

For Proxy Advisers, Influence Wanes

News Editor — Thu, 23 May 2013 17:56:45 +0000

“Big firms that sell recommendations on how to vote in corporate elections are losing some of their relevance,” states the Wall Street Journal, “as companies more aggressively court key investors ahead of big votes and those investors handle more of the voting analysis themselves.” ISS and Glass Lewis dominate an industry that was established to cast a critical eye on the management proposals asset managers and mutual funds had for years “rubber-stamped” in corporate elections. According to the Journal, though, “companies eager to head off ‘no’ votes are more aggressively dispatching top executives and board members to court investors and argue against ISS and Glass Lewis’s recommendations.” In turn, Glass Lewis executives say they have seen less failed say-on-pay votes in 2013 than either of the past two years. “Smaller investors still rely heavily on proxy advisers,” the Journal reports, “in part because they often lack the resources to fund their own analysts.”

Median CEO Pay Rises to $9.7M in 2012

News Editor — Thu, 23 May 2013 17:40:02 +0000

An analysis by the Associated Press using data from Equilar shows that the chief executive of a typical large public company made an average of $9.7 million in 2012–a 6.5 percent increase from a year earlier that was aided by an improving stock market, ABC News reports. Researchers note that CEO pay, which also rose 24 percent in 2010 and 6 percent the following year, has never been higher. The numbers, though, fail to tell the whole story. “After years of pressure from corporate governance activists unhappy about big payouts,” the network notes, “many companies have revamped their compensation formulas. They have awarded a bigger chunk of compensation in stock to align pay more closely to performance; become more transparent about how compensation decisions are made; and, in some cases, promised to claw back pay from fired executives.”

From Google to FedEx: The Incredible Vanishing Subsidiary

News Editor — Thu, 23 May 2013 17:35:31 +0000

“Some of the biggest U.S. companies, including Google Inc. and FedEx Corp., have quietly removed hundreds of offshore subsidiaries from their publicly disclosed financial filings over the past several years,” reports the Wall Street Journal. Oracle Corp., for example, disclosed more than 400 subsidiaries in its 2010 annual report. By last year, the list had been whittled down to eight–five of which were in Ireland. The vanishing subsidiaries are not the result of asset sales or corporate restructurings. Rather, companies say they are taking advantage of SEC rules that demand disclosure only when subsidiary operations are “significant.” According to the Journal, “one result of the change is that the companies limit information about offshore operations, in particular units operating in countries regarded as tax havens.”

Fidelity National Financial, Thomas H. Lee, in Talks to Acquire Lender Processing Services

News Editor — Thu, 23 May 2013 17:20:57 +0000

“Title insurer Fidelity National Financial Inc. and buyout shop Thomas H. Lee Partners are in advanced talks to acquire Lender Processing Services Inc. for about $2.9 billion,” Wall Street Journal sources report. Such a deal would bring Lender Processing Services back under the umbrella of its one-time parent, Fidelity National Financial. The buyers would reportedly pay with a mix of cash and Fidelity National Financial shares. “A deal could be announced as soon as early next week,” the Journal states.

SoftBank Would Appoint ‘Security Director’ to Sprint Board

News Editor — Thu, 23 May 2013 17:17:28 +0000

Tokyo-based SoftBank Corp. has reportedly agreed to “appoint a ‘security director’ to Sprint Nextel’s board if its takeover bid succeeds,” reports Reuters, “and would give the U.S. government the right to approve the nominee.” The move is an effort to address security concerns raised by the proposed deal, as the new director would oversee public safety related to Sprint’s wireless and wireline operations. Such Chinese telecommunications equipment suppliers as Huawei Technologies Co. Ltd. and ZTE Corp. have been blocked from making major inroads into the United States due to national security concerns. Meanwhile, the wire service notes that Dish Network Corp., SoftBank’s rival for Sprint, is running a campaign against the Japanese firm, trying to convince lawmakers and government reviewers that it poses national security risks. SoftBank says it is committed to using only network equipment that is acceptable to the U.S. government.

The Wall Street Journal notes that it is highly unusual for U.S. officials to exert such broad influence over how a company is run. “The director, 1 of 10, would be responsible for making sure that Sprint complied with the agreement on network security that it is negotiating with federal agencies,” the publication notes. Negotiations between SoftBank and U.S. government officials are continuing, and Sprint shareholders are scheduled to vote June 12 on the $20 billion takeover.

PC World notes that SoftBank reached a deal last October to purchase a 70 percent ownership interest in Sprint for US$20 billion. In April, Dish made a $25.5 billion counter-offer to acquire Sprint. “Sprint Nextel said Tuesday it received permission from SoftBank to negotiate with Dish,” notes the publication, “but said it had not changed its recommendation with regard to the SoftBank offer.” SoftBank still expects to close the deal on July 1 or soon after. However, Dish has raised the national security issue time and again to argue its case against SoftBank. For instance, it has told the FCC “that a Sprint-SoftBank deal would put more U.S. spectrum than anyone else holds in the hands of a single, foreign-owned company.”

Deutsche Bosses Seek to Win Over Skeptical Shareholders at Annual Meeting

News Editor — Thu, 23 May 2013 11:28:04 +0000

By Edward Taylor FRANKFURT (Reuters) - Deutsche Bank's bosses tried to convince skeptical shareholders at a lively annual meeting on Thursday that the bank was on the right track again after facing a host of legal problems. Co-chief Executives Anshu Jain and Juergen Fitschen, who took charge nearly a year ago, are trying to steer Germany's largest bank through a major restructuring and resolve its many legal issues. They are also trying to reshape the bank in the wake of the financial crisis for an industry with lower profit margins and higher regulatory costs. ...

Teen Activist Meets With Abercrombie Executives, But CEO Jeffries Is A No-Show

News Editor — Thu, 23 May 2013 08:30:32 +0000

Abercrombie & Fitch?s two-hour meeting this week with critics of its no-large-sizes strategy, and of CEO Mike Jeffries? 2006 remarks that it only courts ?attractive, cool? kids, prompted a mea culpa from the chain, and a vow to ?take concrete steps to demonstrate our commitment to anti-bullying in addition to our ongoing support of diversity and inclusion,? the teen retailer said in a statement.

House to Vote on Variable Rate Student Loans

News Editor — Thu, 23 May 2013 07:36:08 +0000

WASHINGTON (AP) — House lawmakers are ready to pass legislation that links student loan rates to the financial markets in spite of a veto threat from President Barack Obama.

Big Tech Bashing: Stop The Insanity! There’s No Immorality In Making A Profit

News Editor — Thu, 23 May 2013 04:07:02 +0000

Apple CEO Tim Cook (Image courtesy of Wikipedia) Here?s some good fun. In fact, it?s practically becoming a national pastime: The demonization of Big Tech has reached a fever pitch this week. As we gathered our thoughts, collaborator Tom Lowery and I mulled over a few of the headlines of an

Today’s Economists: Marc Jarsulic and Simon Johnson: A Big-Bank Failure Scenario

News Editor — Thu, 23 May 2013 04:01:03 +0000

All the talk of safeguards and international cooperation is likely to prove ineffectual if a huge international bank fails.

Zale Names Ex-Signet CEO Chairman

News Editor — Thu, 23 May 2013 03:54:42 +0000

Zale named former Signet Jewelers CEO Terry Burman as its chairman, while the jewelry retailer also swung to a fiscal third-quarter profit despite a slight drop in revenue.

DealBook: Morgan Stanley’s Head of Fixed Income to Retire

News Editor — Thu, 23 May 2013 01:23:13 +0000

The change puts a spotlight back on Morgan Stanley’s fixed-income division, which has been shrinking since the financial crisis.

Zale Names Ex-Signet CEO Chairman

News Editor — Thu, 23 May 2013 00:49:00 +0000

Zale named former Signet Jewelers CEO Terry Burman as its chairman, while the jewelry retailer also swung to a fiscal third-quarter profit despite a slight drop in revenue.

DealBook: Sony Pondering Spinoff Proposal From a Big Investor

News Editor — Wed, 22 May 2013 22:57:06 +0000

Sony is considering a proposal from the American hedge fund Third Point to spin off part of its entertainment business but emphasized the discussions were preliminary.

Where CEOs Are Most Confident In 2013

News Editor — Wed, 22 May 2013 21:53:10 +0000

A look at where in the world corporate executives are saying they are most positive for 2013 revenue growth. From PwC's Annual Global CEO Survey, released at the World Economic Forum in January.