I recently had lunch with a senior executive from a big accounting firm who complained about the criticism his firm was facing over audits it conducted at big companies that later were found to have big problems. In all these cases, the executive said, there was a “well established body of accounting practice” that permitted […]
The outlines of Goldman’s new public relations strategy are becoming clearer. It involves more television appearances by CEO Lloyd Blankfein, investments in trendy green-tech companies and a new twitter account, unveiled at yesterday’s annual shareholder meeting. It is part of an effort to create a “more open and friendly” firm, according to news reports. Lloyd […]
No one is covering themselves in glory in the aftermath of the Facebook IPO. Lead underwriter Morgan Stanley is battling allegations that it priced the deal too richly. Facebook insiders are being called greedy for the last-minute increase in the number of shares they sold in the offering. Facebook’s management is being criticized for signaling […]
Here is some advice for Eduardo Saverin and misunderstood billionaires everywhere: Just. Be. Quiet. Stung by criticism that he relinquished his U.S. citizenship to evade tax on his fortune, Mr. Saverin gave an interview to the New York Times. He no doubt believed that a sit-down with a Times reporter to “set the record straight” […]
Although it didn’t make the headlines last week, State Street suffered a setback in its long-running legal dispute over the fees it charges clients for foreign exchange services when a District Court judge in Boston denied its motion to dismiss the suit. State pension funds in Arkansas and California have sued State Street, alleging that […]
Reuters can take a well-earned bow for its coverage of Chesapeake Energy and its CEO, Aubrey McClendon. The news service has broken several major stories in the past three weeks that brought to light McClendon’s questionable financial dealings, including his borrowings against stakes in the company’s wells and investments in a hedge fund. The reports […]
When the CEO exits, other senior executives often follow. At Best Buy, the resignation last month of CEO Brian Dunn has been followed by the departure of the chief marketing officer (Barry Judge), the chief technology officer (Robert Stephens) and the CFO of the international division (David Demo). An exodus of senior talent isn’t good […]
This is the season for tallying CEO compensation, and for shaming those who profited while shareholders suffered. I’m no defender of high CEO pay, but much of the reporting on it is inconsistent at best, and in many cases it’s highly misleading. The problem arises from combining two things that should be separate: pay granted […]
Herbalife didn’t get much of a bounce today, a day after investor David Einhorn raised questions about the company’s accounting that sent the shares tumbling. After rising early in the day, the shares fell another 6 percent, even after the company provided additional information in response to Einhorn’s questions. (My earlier post discussed the […]
Herbalife shares are rebounding a little after a 22% drop yesterday, when questions from investor David Einhorn during the company’s earnings call sent investors fleeing. Einhorn is known for spotting accounting problems at companies and backing up his skepticism by taking big short positions. His sharp questioning of Lehman Brothers highlighted issues that ultimately brought […]