Sunday, December 30, 2012
Ramanujan’s “deathbed” puzzle
Monday, November 5, 2012
Saturday, October 27, 2012
WORLD TOP COMPANIES UNDER FINANCIAL PRESSURE...
Amazon reports first quarterly net loss
in years
Apple's weak margin outlook surprises
analysts
Apple warns of holiday earnings drop
Citigroup fined $2 million over facebook IPO
Citigroup fined $2 million over facebook IPO
Secretary of the Commonwealth William Galvin announced the charges Friday. Citi agreed to the settlement without admitting or denying wrongdoing.
Citi was part of the team of banks that helped underwrite the deal that made Facebook a public company in May. When a bank helps underwrite such a deal, it has information about a company that the broader investing public does not have. The bankers who underwrite the deal are not supposed to act on that information or share it with any favored clients, because it would give them an unfair advantage over the public.
The arrangements can also bring accusations of conflicts of interest; banks not only help companies go public or do other deals, they also have units that provide research on the companies. The research is supposed to be impartial, but the banks have a stake in how a company does if it is helping it with underwriting.
According to Galvin's office, a junior analyst in Citigroup's San Francisco office was assigned to help research Facebook. On May 2, the junior analyst sent an email to two employees at the technology website TechCrunch.com, with proprietary information about Citigroup's research on Facebook.
"I am ramping up coverage on FB and thought you guys might like to see how the street is thinking about it (and our estimates)," the junior analyst wrote.
A TechCrunch employee wrote back: "There's no way I can publish this doc from an anonymous source, right?"
A minute later, the junior analyst replied: "My boss would eat me alive."
The analyst and the TechCrunch employee were friends, according to Galvin's office, and had gone to Stanford together.
Citigroup fired the junior analyst in September. The bank told Galvin's office that the junior analyst acted alone. In addition to agreeing to the $2 million fine, Citi also agreed to review its policies for overseeing analysts' communications, and to strengthen compliance training for the analysts.
Wednesday, October 24, 2012
Euro zone rot spreads
Euro
zone rot spreads to Germany ,
China
mending
Thursday, August 23, 2012
Sunday, May 6, 2012
NIFTY bearish below 5,130
Wkly Tech Analysis: Bias to remain bearish below 5,130 |
Among the index stocks, Hero MotoCorp slumped almost 10% to Rs 1,981, and Maruti plunged over 8% to Rs 1,283 |
Rex Cano / Mumbai May 05, 2012, 23:59 IST |
The markets, as expected, began the week with hopes of a counter rally by the bulls. We saw the Sensex touch a high of 17,432, but eventually the gains turned into significant losses by the end of the week as technically the momentum oscillators were not supportive. |
Sunday, March 11, 2012
SUCCESS A WAY OF LIFE
11 MAR, 2012, 10.38AM IST,
Lesson's from AM Naik and L&T's leadership change
Managing leadership succession is very challenging for all organisations, tougher for more complex entities. Unfortunately, in several cases, neither the incumbent nor the board wakes up to address this challenge early on.
Typically, in their hurry to grow the organisation, they either forget or do not devote adequate attention to such a strategically important matter before it becomes a crisis. The leadership change at L&T has attracted a lot of attention precisely for the same reason. There are several lessons from this experience.
Every Lap Counts
Leadership succession is like a relay race. Choice of the runners for each lap depends on the challenges ahead, the first and last runners being the fastest. There has to be adequate preparation and perfect understanding between runners about the timing of passing the baton.
The person handing over the baton should feel confident that the person receiving it has caught hold of it. The two runners have to have perfect understanding between them about each other. In a well-trained context, this happens in split seconds. Played out in slow motion, the same thing happens in leadership succession in corporations.
In this highly professionalised organisation, the board and management have always been aware of the need for finding a successor to Mr Naik, who is already 70. In fact, media reports that appeared about two years ago had described the dilemma that the company was going to face.
It is unfortunate that the board did not do much then or earlier about choosing the runner for the next lap with all the appropriate capabilities, and prepare the ground for a smooth change over. This was in spite of the fact that the entire team of executive directors was over 60 then!
Start Early
The board should have started the process of identifying the successor at least five years back with a definite deadline, and intensified the search especially when it was clear then itself that there was no obvious choice available.
The company would have been better off with a younger top leadership to steer the organisation to achieve the 25 percent compound growth planned in the next several years. Such an approach would have guaranteed smooth transition of leadership at L&T, with an over lapping phase for the baton change to be trouble free.
Doubles Game
The current decision to split the responsibilities between chairman and managing director appears to be a convenient decision. The new duo of chairman and MD/CEO is going to face sharing the responsibilities of shaping the destiny of the organisation. It may not be easy for the new entrant to flourish when Mr Naik's shadow continues to loom large as the executive chairman.
Given that Mr Naik and Mr Venkatraman will play a doubles game for the next five years, it is critical for them both as well as the board to objectively discuss the roles they will actually play independently and jointly. The new MD should not become a figure head
Prepare Next Runner
Mr Naik has built L&T into a giant organisation, fighting several odds. He has a larger than life image. In such a scenario, it is for the incumbent to remind himself of the trusteeship role he is playing and prepare the organisation for the next leader. It appears that Mr Naik did not do it early enough.
By asking Mr Naik to continue as the executive chairman, the board has signalled its lack of preparedness for a change which is inevitable for anyone. Many leaders in business and politics do not believe that their time for retirement would ever come; they tend to think that they alone are capable of running subsequent laps. They do not recognise the need to prepare the next lap runner early on. Mr Naik and the board failed in their trusteeship responsibility.
Insecurity of Retirement
The longer a leader stays and the bigger the success, the greater is likely to be the challenge for his departure. Individual egos play a dominant role in refusing to accept realities. This is where some of the basic teachings of this country such as detachment, contentment and feeling of duty become all the more helpful. This is when leaders show their maturity.
National Institution
L&T is a national institution, respected and regarded for its professionalism by multiple stakeholders. The top team, representing all the stakeholders has a responsibility to ensure that it starts preparing for the next lap runner now itself. As trustees, they have to constantly remind themselves that no individual is indispensable.
(The author is Thomas Schmidheiny Chair Professor of Family Business & Wealth Management,