Showing posts with label Bank Bailout. Show all posts
Showing posts with label Bank Bailout. Show all posts
Monday, October 20, 2008
Recommended Reading - Bank bailout also curbs CEO pay, NPR Marketplace
Rachel Dornhelm of NPR's Marketplace had an audio/written story on NPR's Marketplace this morning that focused on how the recent bank bailout and the subsequent curbs on CEO pay could actually result in changes in the compensation structure for CEOs in numerous industries. There remains great skepticism over whether the new restrictions on CEO compensation imposed in the recent bailout package will actually have any impact even in the financial related sector. Dornhelm's interview of Professor Charles Elson, the head of the University of Delaware's Corporate Governance Program and Mark Borges, a compensation consultant with Compensia, raised the possiblility that the new restrictions may actually have an impact on CEOs outside the bailout. For more on the story check out the Marketplace piece.
Monday, October 13, 2008
CEO Watch - Sir Fred Goodwin - Royal Bank of Scotland Update 2
Back in late August (see blog post) I placed Sir Fred Goodwin, the CEO of the Royal Bank of Scot
land, on my CEO watch list. It took a bank bailout from the government of the United Kingdom to get Sir Goodwin's head. According to a story by Jon Menon in Bloomberg, in exchange for the U.K. government bailout,
land, on my CEO watch list. It took a bank bailout from the government of the United Kingdom to get Sir Goodwin's head. According to a story by Jon Menon in Bloomberg, in exchange for the U.K. government bailout,..RBS will get 20 billion pounds, while HBOS and Lloyds will raise 17 billion pounds between them, the companies said in separate statements today. RBS Chief Executive Officer Fred Goodwin and HBOS CEO Andy Hornby will also step down
The Bank has appointed Stephen Hester as Sir Fred Goodwin's replacement as CEO. Hester has been the CEO of British Land one of the largest real estate firms in the U.K. He is
expected to institute a number of radical changes at the bank in light of the financial crisis. According to a different story in Bloomberg Hester,
may get rid of securities trading and consumer banking in the U.S. and corporate lending in Europe. He also may sell assets that outgoing CEO Fred Goodwin bought last year from Amsterdam-based ABN Amro Holding NV."There are no sacred cows,'' Hester, 47, said on a conference call with reporters today. "We will make material changes to strategy.''
One can assume the executive change at RBS and the U.K. investment in the bank will make for a more certain situation going forward. We will just have to wait and see. Stay tuned.
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