Category Archives: Corporate Governance

NatWest criticised over £1.2m pay for boss with ‘limited experience’

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Governance adviser says Paul Thwaite could have been offered lower starting salary than predecessor Alison Rose

NatWest has been criticised for paying its new boss a salary of £1.2m despite his “limited experience” as a chief executive, amid a wider shareholder backlash in the City of London over bumper corporate pay.

As the government prepares to sell shares in the bank before the general election, Institutional Shareholder Services (ISS) warned that Paul Thwaite would be paid the same salary as the bank’s former chief executive, Alison Rose, despite lacking her experience as a lead executive.

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British Gas owner doubles boss’s pay to £8m – despite qualms over previous rise

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Details of Chris O’Shea’s ballooning package emerge in Centrica’s annual report after company reports bumper profits

The boss of the British Gas owner, Centrica, has seen his earnings nearly double to £8.2m, despite having admitted that his smaller pay packet the previous year was “impossible to justify”.

Chris O’Shea earned a basic salary of £903,000, which was topped up by cash and share bonuses worth an extra £7.3m.

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EU fines Apple €1.8bn over App Store restrictions on music streaming

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Penalty for breaching competition law is four times higher than forecast as Brussels looks to send message to tech firms

Apple has been fined €1.8bn (£1.5bn) by the EU after an investigation found it had limited competition from music streaming services such as Spotify.

The fine is nearly four times higher than expected as the European Commission attempts to show it will act decisively on tech companies who abuse their dominant position in the market for online services.

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HMRC investigations of wealthy ‘tax dodgers’ halve in five years

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The drop in civil inquiries by fraud unit sparks criticism that the authority’s use of its powers of enforcement are waning

The number of civil investigation cases opened by a HM Revenue and Customs (HMRC) fraud unit investigating offshore, corporate and wealthy taxpayers has fallen by more than half in five years, figures reveal.

The Observer reported last month that HMRC has not charged a single company under landmark legislation to crack down on tax evasion. Campaigners warned that HMRC was undermining its own deterrents by failing to use its criminal enforcement powers.

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Lloyds and Santander accused of providing accounts for Iranian front companies

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Both banks deny helping Tehran-controlled oil firm PCC to move money in breach of sanctions

Two of the UK’s largest lenders, Santander UK and Lloyds Banking Group, allegedly held bank accounts for front companies that helped Iranian entities evade US sanctions, according to reports.

The news has rattled investors, who sold off shares in the two banks on Monday morning, amid fears that the lenders could face penalties if they are found to have in any way assisted Iran’s state-controlled Petrochemical Commercial Company (PCC).

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HMRC has not charged a single company over tax evasion under landmark legislation

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Powers bestowed by the Criminal Finances Act 2017 are not being used effectively, say critics

HMRC has not charged a single company under landmark legislation passed six years ago to crack down on corporate tax evasion.

Critics say the data, released under freedom of information laws to the Bureau of Investigative Journalism and TaxWatch, suggests that HMRC is undermining its own deterrents against corporate tax evasion by failing to use its criminal enforcement powers.

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BT scraps above-inflation price rises for mobile and broadband customers

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UK’s mobile and broadband firms were accused of ‘greedflation’ last year by the Guardian

BT has become the first major telecoms company to scrap controversial above-inflation price rises for mobile and broadband customers – but not before pushing through a final increase this year.

The owner of mobile operator EE has moved to address the pressure on consumers from rising household costs during the cost of living crisis, after telecoms companies were criticised for increasing bills.

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Workers at Tory donor’s JCB factory test positive for drugs after sniffer dogs called in

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Exclusive: ‘Significant’ number of staff sacked from digger firm after drug and alcohol tests

JCB, one of the UK’s biggest manufacturers, is investigating a spate of drug use among workers based at its headquarters and has sacked a “significant” number of staff, the Guardian can reveal.

A message sent to UK employees last week by the digger-maker’s group human resources director, Max Jeffery, seen by the Guardian, said it had been conducting a “series of investigations into substance misuse” over the past two months. This had resulted in a “small but significant number of people leaving JCB”.

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Let boardrooms look beyond shareholder returns to drive productivity, report urges

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Adapting business laws to include benefits other than profit in decision-making could add £149bn to UK economy, says Demos thinktank

Britain’s economy could receive a £149bn boost from a change to UK business laws that would ensure companies put social, economic and environmental benefits at the heart of their decision-making, according to a report.

With the UK on course for the second lowest growth rate in the G7 group of leading economies in 2023, the study by the thinktank Demos said it was clear that cutting taxes or raising public spending had not been effective at driving economic growth.

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OpenAI ‘was working on advanced model so powerful it alarmed staff’

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Reports say new model Q* fuelled safety fears, with workers airing their concerns to the board before CEO Sam Altman’s sacking

OpenAI was reportedly working on an advanced system before Sam Altman’s sacking that was so powerful it caused safety concerns among staff at the company.

The artificial intelligence model triggered such alarm with some OpenAI researchers that they wrote to the board of directors before Altman’s dismissal warning it could threaten humanity, Reuters reported.

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Higher interest rates help HSBC to more than double profits

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Bank criticised by MPs for being too slow to reward savers as it announces 15% rise in net interest income and $3bn share buyback

Higher interest rates helped HSBC to more than double its profits and hand over $3bn (£2.5bn) to shareholders, as MPs criticised the largest UK banks for being too slow to reward savers.

The London-headquartered bank said it was launching a share buyback, and paying a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as “three consecutive quarters of strong financial performance”.

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Bad management has prompted one in three UK workers to quit, survey finds

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Study shows widespread concern over quality of managers, with 82% of bosses deemed ‘accidental’, having had no formal training

Almost one-third of UK workers say they’ve quit a job because of a negative workplace culture, according to a new survey that underlines the risks of managers failing to rein in toxic behaviour.

Research carried out by the Chartered Management Institute (CMI) pointed to widespread concern about the quality of management, and its impact on workers’ daily lives.

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Africa’s ‘optimist-in-chief’ on the continent’s renaissance: ‘Don’t just believe me, believe the data’

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In an exclusive interview, Akinwumi Adesina, head of the African Development Bank, says the outlook is good for a continent with the workers of the future and the best investment opportunities

Africa holds the future workforce for the ageing economies of the west, according to one of the continent’s leading financial figures, who also said it was time to ditch the myths around corruption and risk.

In an exclusive interview before this weekend’s World Bank meetings in Morocco, Akinwumi Adesina said there was a resurgence of belief in Africa’s economic prospects and attacked negative stereotyping, adding that there was “every reason to be optimistic”.

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Elon Musk reveals new Twitter logo X

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Experts warn that rebranding of 15-year-old app may be a risky move at a time when competitors are upping their game

Elon Musk has revealed a new logo for Twitter, choosing a “minimalist art deco” X as part of a rebrand of the platform.

The Twitter owner indicated that the design would be altered, tweeting that it “probably changes later, certainly will be refined”. Twitter’s CEO, Linda Yaccarino, confirmed the choice on Monday by tweeting the design and writing: “X is here! Let’s do this.”

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Private equity pioneer Guy Hands to leave Terra Firma ‘when I’m 64’

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Dealmaker and ardent Brexit critic to leave senior posts at firm he founded more than 20 years ago

Private equity tycoon Guy Hands referenced a Beatles song as he informed staff of his decision to leave the buyout firm he founded two decades ago.

The billionaire dealmaker told staff on Friday he would leave the posts of chairman and chief investment officer at Terra Firma Capital Partners in August, drawing to a close a high-profile, chequered career.

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Asda’s profit margins at the pump have trebled, MPs told

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Competition regulator tells business committee of ‘significant change’ in retailer’s fuel pricing

Asda’s profit margins on fuel have tripled since before the pandemic, according to the competition regulator at a bad-tempered parliamentary hearing where the supermarket chain’s co-owner repeatedly refused to explain its pricing strategy.

Mohsin Issa declined to answer multiple questions on whether Asda had increased its profit margins on fuel since its takeover in 2021, prompting MPs on the business select committee to become increasingly furious as the retailer insisted it had not changed its strategy.

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SSE to pay near-£10m penalty over licence breach

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Sum follows Ofgem inquiry into firm’s power generation arm earning ‘excessive payments’ from National Grid

The energy regulator has said the power generation arm of Scottish energy company SSE will pay a near-£10m penalty for breaching the terms of its licence.

Ofgem said a detailed investigation had found that SSE Generation had secured “excessive payments” from the National Grid, the electricity system operator (ESO), during periods of what is known as “transmission constraint”.

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South West Water under investigation over leaks and usage figures

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Shares in owner Pennon Group fall as it says Ofwat has launched inquiry into South West Water

South West Water is being investigated by the industry regulator over whether it accurately reported leaks and figures showing how much water is used by its customers.

Pennon Group, which owns South West Water and Bristol Water Group, told its shareholders Ofwat had announced an investigation into the company’s operational performance during 2021 and 2022.

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US banking crisis: Warren Buffett says bosses should face ‘punishment’

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Billionaire investor believes ‘CEO and directors should suffer’ when banks they run get into trouble

The billionaire investor Warren Buffett has said executives who led the US banking system into crisis should face “punishment”, as the American economy grapples with the worst series of bank failures since the 2008 financial crash.

The owner of the investment firm Berkshire Hathaway said US bank directors “should suffer” when they run into trouble, adding that he was wary of most banking stocks because of “the messed-up incentives”.

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Tax firm run by SNP’s auditors accused of potentially running avoidance scheme

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Company challenged over advice that one expert says will enable families to avoid paying tax on private school fees

A boutique tax advisory firm run by the Scottish National party’s new auditors has been accused of potentially running a tax avoidance scheme to help parents who are paying private school fees.

Signature Tax, an offshoot of AMS Accountants Group, offers clients “tailored tax solutions” on its website, including advice on paying fees in a “tax efficient manner”.

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