Friday was a horrible day for investors in Groupon. The stock tumbled 6 percent on news that the company would restate it earnings after underestimating customer refunds, which led its auditor to declare the company had a material weakness in its internal controls. That kind of news is never welcome, and Groupon’s management has a […]
It was a busy weekend for damage control, with two examples of executives who tried to regroup after enduring very bad news. First, there was an effort by former MF Global CEO Jon Corzine to counter a memo that emerged late last week that said Corzine authorized the transfer of client monies to J.P. Morgan. […]
Hartford Financial CEO Liam McGee on Wednesday announced plans to break up the company, largely along the lines recommended by hedge-fund activist John Paulson, whose funds own about 8.5% of the insurer. It looks like McGee never put up a serious effort to counter Paulson’s recommendation to separate Hartford’s property and casualty insurance business, despite […]
Now that we are in day two of the Memo that Shook Wall Street – the most famous resignation since Jerry Maguire’s “mission statement” – it’s worth asking whether the New York Times has anything to answer for in this episode. Landing a prominent article on the Times op-ed page doesn’t happen overnight. Unlike the […]
In an earlier post, I suggested that Goldman send a note to its employees to respond to Greg Smith’s public resignation letter. It appears my advice was taken. Goldman chiefs Lloyd Blankfein and Gary Cohn did indeed send a memo (perhaps I’ll send them a large bill). It was very well done. Here’s why: It […]
The public resignation letter by Greg Smith, a Goldman executive, is lighting up the blogosphere. It’s certainly not the way Jake Siewert imagined spending his first day on the job as head of communications. As a candid, personal confession from a Goldman insider, the letter is very damaging. It counters the notion that Goldman has […]
Lucas van Praag, the longtime communications chief at Goldman Sachs, is stepping down. To those of us in the PR trade, this news yesterday was much more significant than Facebook’s IPO filing and the legion of twentysomething millionaires it will spawn. Van Praag has done a brilliant job of defending Goldman and handling the outsized […]
Attorneys for News Corporation investigating the phone-hacking scandal at the now-defunct UK tabloid News of the World revealed today that emails warning of widespread hacking were deleted from James Murdoch’s computer. The New York Times reports: “Rupert Murdoch’s son James that referred to “a nightmare scenario” of legal repercussions from widespread phone hacking at the […]
There’s long been a debate about whether a company’s culture makes any difference in how it performs. Culture often is derided as the “soft stuff” that is nice to have but not really essential to a company’s success. Indeed, Sandy Weill once famously quipped that culture was “something they put in yogurt.” (Of course, we […]
You know your company is in trouble when the chief marketing officer gets more press than the CEO. And it’s in really, really deep trouble when the CMO is seen distancing herself from the company’s strategic blunders. That’s what we saw over the weekend in the New York Times piece on Anne Finucane, “chief image […]