Category: James Post

Is ‘shareholder value’ bad for business?

August 1st, 2014 in 2014, Boston Globe, James Post, Newsmakers, School of Management 0 comments

PostJames (1)Boston Globe (subscription required)
James Post, School of Management

The uprising against the owners of Market Basket that’s been unfolding over the past several weeks looks at first like a classic showdown between the powers that be and the little guys who would. In one corner stands a coalition of board members and major shareholders who think it should be returning higher profits; in the other, a crowd of employees fiercely devoted to the recently fired CEO, who won their loyalty by paying high wages, providing generous benefits, and handing out regular bonuses…

Expert quote:

“This controversy is the tip of an iceberg. And what’s below the iceberg is a much larger debate about the relationship between shareholders and all of the other parties that help account for the success of a company.”

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Alibaba discloses powerful partners, reveals slowing growth

June 16th, 2014 in 2014, James Post, Newsmakers, Reuters, School of Management 0 comments

PostJames (1)Reuters
James Post, School of Management

Alibaba Group Holding revealed the members of its powerful 27-person partnership and board on Monday, while disclosing that the Chinese e-commerce giant’s growth has slowed from the red-hot pace of recent quarters…

Expert quote:

“His family relationship is a negative from a Western governance point of view, but probably a positive from an Asian perspective. The board will be the place where ‘East meets West’ governance happens at Alibaba in the years to come.”

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Eight Management Lessons From the Mishandled NYT Firing

May 20th, 2014 in 2014, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJames (1)Bloomberg
James Post, School of Management

While few people agree on just about any aspect of Jill Abramson’s dismissal as executive editor of the New York Times (NYT), there’s general consensus on this: The company didn’t handle it well…

Expert quote:

“This has become like a California wildfire where you never know where the next hotspot will flare up.”

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Alibaba Partners Keep Control After Shunning Hong Kong for U.S.

May 8th, 2014 in 2014, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJames (1)Bloomberg
James Post, School of Management

Alibaba Group Holding Ltd.will be governed by a partnership with exclusive right to nominate a majority of its board of directors, the company said yesterday, unveiling the details of a structure that kept it from pursuing an initial public offering in Hong Kong…

Expert quote:

“This is one giant step away from the pure governance model, but having had Facebook and Google do something similar, people are willing to take a deep breath and say, ‘We can live with this. Jack Ma is very successful but he’s also very controlling. They happen to have found a market in the U.S. that’s accommodating.”

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Alibaba Founders to Keep Control With Partnership Alternative

May 4th, 2014 in 2014, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJames (1)Bloomberg
James Post, School of Management

If one-share-one-vote is the best ownership structure an investor can ask for, and having two classes of shares is worse, Alibaba Group Holding Ltd. will fall somewhere in between…

Expert quote:

‘If they want to play in the space that Google and Facebook and Alibaba inhabit — this is the price of getting into that game. Part of what investors are investing in is Jack Ma and the management team, just as they were investing in Zuckerberg and Page.”

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Barra as Change Agent Collides With 32-Year Career at GM

April 3rd, 2014 in 2014, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJames (1)Bloomberg
James Post, School of Management

General Motors Co. (GM)’s Mary Barra presented herself as a change agent during congressional testimony this week. Senator Barbara Boxer wasn’t buying…

Expert quote:

“First she has to communicate to every person in the company, in every part of the company, that this is a game-changing crisis and not something you can just put a patch on. Anyone who disagrees, they need to go.”

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RH CEO Gary Friedman’s Luxury Retail Ambitions

February 27th, 2014 in 2014, Business Week, James Post, Newsmakers, School of Management 0 comments

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James Post, School of Management

“These are the original antique library chairs that are in our catalog. Those are the original antique tables that we have replicated,” says Gary Friedman as he walks briskly through his home in California’s Marin County, passing low-slung brown leather chairs and unpolished wood tables. Friedman is the public face of RH (RH), formerly known as Restoration Hardware, and its guiding spirit…

Expert quote:

“There is certainly pressure on the board to be extremely vigilant about Mr. Friedman’s behavior. They cannot afford to be fooled again.”

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Microsoft Says Board Will Complete CEO Search in 2014

December 17th, 2013 in 2013, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJamesBloomberg
James Post, School of Management

Microsoft Corp. (MSFT), which is seeking a replacement for Chief Executive Officer Steve Ballmer, said it anticipates completing the search in the early part of 2014…

Expert quote:

“Boards always want to have an orderly process of succession, but the balance between secrecy and transparency seems to be shifting. For sure, there’s no going back to the old way where only private searches are done.”

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Men’s Wearhouse Shunned Bid Can’t Stop Deal Bet: Real M&A

November 22nd, 2013 in 2013, Bloomberg, James Post, Newsmakers, School of Management 0 comments

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James Post, School of Management

Traders aren’t buying what Men’s Wearhouse Inc. (MW) is selling…

Expert quote:

“The board has put up a number of obstacles, and it’s become a very defensive battle. Eminence has to try to create a coalition of shareholders that’s big enough to force the board to pay attention and not simply reject the demands out of hand.”

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Golden Hellos Surge as CEOs Get Signing Jumbo Bonuses

November 19th, 2013 in 2013, Bloomberg, James Post, Newsmakers, School of Management 0 comments

PostJamesBloomberg
James Post, School of Management

More U.S. companies are luring top executives with multimillion-dollar “golden hello” signing bonuses, undeterred even as high-profile flameouts such as Ron Johnson’s short tenure at J.C. Penney Co. expose the risks…

Expert quote:

“The board has to be careful not to fall in love with any one candidate. You have to look for a good candidate at a good price, not a good candidate at any price.”

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