On the 6 and 7 February, 2015 in Florence 25 specialists coming from all over Europe and representing various cultures in terms of Corporate Governance are going to meet in the Villa Romana in Florence. The Club of Florence (CoF) Seminar is a reference point for all those who appreciate to discuss and to reflect about responsibility from many different points of view in both a stimulating and relaxed international environment. Registration is open at CoF@CoF.cg
Companies
Siemens’s loss is 888 million Euros
The long line of failed projects has again denied Siemens a double digit operating profit percentage. The quarters when CEO Joe Kaeser is not locked in to announcing losses, often amounting to hundreds of millions, are few and far between stemming from projects like, for example, electric transmission, or linking up with maritime wind farms. The problem with wind farms is that they cost the group 223 million Euros in the fourth quarter alone. Referring to last financial year, CFO Ralf Thomas was talking in terms of 888 million Euros of expenditure and the year before that, the figure was 900 million Euros. Read more at vipsight.eu
The German Mittelstand
More optimism through sustainability
It is becoming increasingly worthwhile for listed companies to convert to a company culture oriented towards greater sustainability. This is especially true for SMEs. Why? Because institutional investors are shifting towards deciding where to invest on the basis of factors of sustainability. This emerges from a survey on sustainability published by Union Investments – a company in the field of capital investments according to which 56% of investors interviewed stated that they take sustainability into account when selecting where to invest. The satisfaction rating calculated by Union Investment for sustainable investments has risen sharply and stands at 13.4 points. In 2013 the barometer read 5.4 points, and in 2012, a mere 4.2 points. The survey was conducted over 215 major investors with a t otal asset worth of some 1.5 billion Euros. Read more at vipsight.eu
Buhlmann’s Corner
Politics set such a fine example it’s hard not to follow. Should I be beholden to what I said yesterday to make people vote for me? Short answer: no.
The latest illustrious example comes from the chairman of the Supervisory Board of Siemens 2012-3. He ran for re-election promising that his top priority would be to prepare (at last) a road map for his succession and that of other members of the board. So there he sits, waiting for things to happen on their own, and we likewise, hoping that the world changes as little as possible. Them up there and us down here. Let’s hope in the weightiness of the family, now beginning to echo with youthful vigour. Read more at vipsight.eu
People
For the third time, Aurubis has fired its management board’s chairperson, this time Peter Willbrandt. Bernd Drouven will take over the helm of the copper working company for a maximum of twelve months. The state of conflict that arose between Supervisory Board chairman Heinz Jörg Fuhrmann and the then chairman of the management board, later member of the Supervisory Board that led to the latter’s resignation in 2011, seems not to be an issue. Drouven’s responsibilities on the Supervisory Board will be shouldered by reserve board member Joachim Faubel. On September 19, Faubel’s predecessor announced that personal reasons prevented him from seeking renewal of his contract. Aurubis’s announcement that in agreement with the Supervisory Board, 52 year-old Willbrandt was no longer with t he company as from October 31, was datelined 3 November. Read more at vipsight.eu
VIPsight International
Shanghai-Hong Kong Stock Connect – a new beginning or a false dawn for corporate governance in China?
Author: Christine Chow
Studies
Two recent studies, one by the Asian Corporate Governance Association (ACGA) and broker CLSA (September 2014) and another by Institutional Shareholder Services (ISS) (November 2014), suggest that for the Stock Connect to live up to its expectations corporate transparency and disclosures need to be improved in China and – more fundamentally – the way state-owned enterprises (SOE) are run needs to be reformed. Read more at vipsight.eu