Monthly Archives: June 2016

Chairman, squared off

What does it say about the cultures of two corporations when their respective chairmen engage in  essentially a teenager Twitter war?

“Tribune’s Attempt to Fend Off Gannett Heads for Symbolic Vote,” The Wall Street Journal, June 2, 2016 B1. One chairman sends a letter to the shareholders of the other chairman’s company, suggesting a conflict of interest in a proposed acquisition.  The response was a text that calls the first chairman (a former personal friend) a liar.

Is this behavior you’d expect of the chairman of a major corporation?  Is it a good idea to insult someone who buys ink by the barrel?

What’s the duty of a director to act in the best interests of the shareholders?

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Filed under Compliance, Culture, Directors, Duty, Duty of Care, Governance, Investor relations

Information’s worth

What’s information worth?  How about the cost of remodeling your bathroom?

“Ex-Barclays Banker Charged With Passing Inside Information to Plumber,” The Wall Street Journal, June 1, 2016 C1.   A former Barclays’ employee was arrested for disclosing confidential deal information to his friend and plumber, in return for, among other things, a free bathroom remodel.  Plumber allegedly got about $76,000 in illegal profits.

There’s a metric. The remodel was not so much free as “included.”

Is any information free?

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Filed under Business Case, Controls, Directors, Duty, Employees, Information, Risk, Value