Corporate governance - Vigil

When Jim Vena, chief executive of Union Pacific, announced on Thursday that the US’s biggest railroad had made significant progress in talks on merging with another network, he used deceptively humdrum language. The company was “in advanced talks” with Norfolk Southern, the US’s fourth-biggest railroad, about a “potential business combination”, he told participants in the company’s second-quarter results conference call. Yet to observers and analysts of freight railways in the US and Canada, Union Pacific’s plans are far more than just another “business combination”. A successful deal would destroy the widespread assumption that big Canadian and US railroads — which handle about 40 per cent of inter-city freight movements — had become so consolidated that regulators would block any new attempted merger.

The number of “boomerang CEOs” — corporate bosses who have been brought back for a second stint in the top job — is at a 10-year high in the US as boards of directors increasingly reach back to the past to fill a gap in their succession plans. A burst of reappointments in the past nine months, after a record year for boomerang hiring in 2023, means that 22 companies in the S&P 1500 are now run by chief executives who have returned to the role, according to recruitment consultancy Spencer Stuart. They range from household names such as Disney, where Bob Iger stepped back in to replace his successor as chief executive in 2022, and Dell Technologies, where founder Michael Dell is on a second stint in charge, to smaller companies in semiconductors, retail and homebuilding.

U.S. President Donald Trump says he may not reach a new trade deal with Canada and is suggesting he might instead impose more tariffs on the country unilaterally. Mr. Trump’s warning follows signals from Prime Minister Mark Carney that the two sides may not be able to reach an agreement by a self-imposed deadline of Aug. 1. “We haven’t really had a lot of luck with Canada. I think Canada could be one where there’s just a tariff, not really a negotiation,” Mr. Trump told reporters Friday as he left the White House for a trip to Scotland. “We don’t have a deal with Canada.” Companies are passing rising tariff costs on to U.S. consumers, real-time pricing data show

As artificial intelligence reshapes risk, talent and strategy, boards must rethink oversight from the ground up. Directors are finding new ways to align AI governance with business realities—without falling behind the curve. As artificial intelligence moves deeper into operations, strategy and infrastructure, directors are being asked to provide oversight on systems that didn’t exist when most board structures were built. During CBM’s recent Directors Forum, Sheila Bangalore, director at Games Global, Paloma Health and StoneAge Waterblast Tools, and Samantha Kappagoda, director at Credit Suisse Funds and chief data scientist at Numerati Partners, shared strategies for adapting to this moment of AI oversight. Some practices worth considering.

At the start of 2025, business leaders anticipated material changes worldwide, though many underestimated the speed and volatility of the changes. Events once thought rare occur more often and at scales previously unseen. They impact each organization differently in complex and nonlinear ways that vary by country and sector. As business leaders mark the year’s midpoint, here’s how predictions on 2025 trends are tracking as boards and senior management teams pursue growth while managing risks and opportunities. 

Artificial intelligence (AI) is transforming established practices in multiple areas across all industries, and mergers and acquisitions (M&A) are not immune to this transformation. From the exploratory phase to due diligence, including contract drafting and negotiations, AI enables M&A teams to leverage powerful tools for analysis, automation, and prediction, thus improving efficiency, accuracy, and objectivity. While this is still an emerging use case, studies indicate we can expect to see AI leveraged in a majority of M&A deals in the coming years, offering businesses an opportunity to be at the forefront of this revolution and leverage the benefits of AI ahead of their competitors.

A shareholder adviser group, Glass Lewis, expressed new concerns about UK-based money transfer company Wise's plans to change its primary listing to the U.S., just days before a shareholder meeting, and another adviser, PIRC, said that it opposed the plans. In a statement made public on Monday, Wise's second-biggest shareholder, Skaala Investments, urged other shareholders to vote against proposals to move the company's primary listing to the U.S. from London, because the plans also included an extension to its dual share structure, which it said was "buried" in the proposals. On Tuesday, shareholder adviser Glass Lewis updated its report in light of Skaala's statement, and added its own concerns about the proposed extension of the dual share structure, according to a copy of the report seen by Reuters.

Macquarie Group employer of Australia's best-paid CEO, said on Thursday it will review its executive compensation following a regulatory compliance lawsuit as shareholders voted against its salary plans for the first time at its annual meeting. The investment bank also announced its chief financial officer was retiring, a surprise development which takes out one possible successor to current leader Shemara Wikramanayake who started in 2018, and reported a dip in first-quarter profit, pushing its shares lower. The rethink of its top-level pay reflects an unusual degree of investor pushback against a company nicknamed the millionaire factory due to its compensation as heightened regulatory scrutiny and weaker earnings at some of its global businesses stoke disquiet among shareholders.

Russia-backed Indian refiner Nayara Energy has named a new chief executive after its previous CEO resigned following European Union sanctions that targeted the company, four sources with knowledge of the matter said on Friday. The reshuffle at the top is the latest disruption for the company since the EU announced a new round of sanctions last Friday directed at Russia over its war in Ukraine. This week, a tanker carrying Russian Urals crude was diverted away from Nayara's Vadinar port to unload its cargo at another port in western India, Reuters reported. That came after two other tankers skipped loading refined products from Vadinar, Reuters reported.

GO Residential Real Estate Investment Trust, a luxury rental apartment owner in New York City, pulled off its US$410-million initial public offering on the Toronto Stock Exchange, pricing its units at US$15 apiece. After converting to Canadian dollars, GO Residential is raising $560-million, making it one of the largest-ever real-estate IPOs in Canada. GO owns five rental towers in Manhattan along the East River, including the Copper Buildings, where the average monthly rent is US$8.05 per square foot. That amounts to US$8,050 per month for a 1,000-square-foot apartment. The company was co-founded by Joshua Gotlib and Meyer Orbach, who both have bought, managed and sold commercial properties in the NYC area.

Donald Trump, venu inspecter jeudi la Fed, a eu un échange tendu avec le patron de l’institution, Jerome Powell, à qui il a demandé à nouveau de baisser les taux, mais sans aller l’invectiver en face-à-face comme il l’a fait par réseaux sociaux et caméras interposés ces dernières semaines, de manière répétée. Le républicain de 79 ans est venu observer un grand chantier de rénovation de l’imposant bâtiment à Washington. Le banquier central a contesté, en secouant vigoureusement la tête, un chiffre de 3,1 milliards de dollars avancé par le président américain sur le coût des travaux, au lieu de 2,7 milliards au départ.

Maison agricole Joy Hill met la main sur Club Kombucha qui, comme son nom l’indique, produit du kombucha, mais dont la gamme sera prochainement élargie, annoncent les nouveaux propriétaires. « Nous allons lancer une boisson aux électrolytes, prête à boire, en cannette, confie Justine Therrien, copropriétaire de Joy Hill. Ça va s’appeler Club Électro. » Une version en sachets suivra cette expansion de produits. Club Kombucha a été fondé par Claudie Gravel-Niquet, qui a décidé de céder son entreprise pour des raisons personnelles. Elle est la sœur de Julien Niquet, second propriétaire de la Maison agricole Joy Hill.

Hong Kong-based conglomerate CK Hutchison has said it plans to bring on a “major” Chinese investor for a consortium backed by US asset manager BlackRock as the company seeks Beijing’s approval for a $23bn ports sale that includes key assets in the Panama Canal. While CK Hutchison did not name the investor, four people close to the discussions said China’s state-owned shipping conglomerate Cosco was in talks to join the group that includes Swiss-Italian shipping company MSC. Under one of the options being discussed, Cosco would receive a stake in 41 global ports but not the two Panama Canal ports that US President Donald Trump has alleged are subject to Chinese influence, said three of the people.

Brazil is scrambling to avert punishing 50% U.S. tariffs in a week's time, but high level talks are stalled and U.S. companies are reluctant to confront U.S. President Donald Trump over the issue, officials and industry leaders say. Trump linked the tariffs, which he has said would come into effect on Aug. 1, to Brazil's treatment of former President Jair Bolsonaro, who is on trial over charges of plotting a coup to stop President Luiz Inacio Lula da Silva from taking office. Lula has called the threatened duty "unacceptable blackmail." No new diplomatic talks have occurred since last month, and a Brazilian counter-proposal sent in May went unanswered, two diplomats with knowledge of the matter told Reuters.

Le président des États-Unis, Donald Trump, affirme que son administration n’a « pas eu beaucoup de chance avec le Canada » lors des négociations commerciales en cours. Ottawa et Washington mènent des pourparlers dans le but de conclure un accord commercial avant l’échéance fixée à la semaine prochaine par le président américain. Vendredi matin, M. Trump a soutenu que son administration ne s’est pas concentrée sur un accord avec le Canada. Il a ajouté que le Canada pourrait devenir un pays « où l’on se contente de payer des droits de douane ».

New appointments highlight a strong preference for seasoned leaders with global and cross-sector expertise—prompting fresh questions about board succession and generational balance. Over the last few years, the job of corporate board members has become much more difficult. Directors have taken on more responsibilities and have had to deal with more complex decision-making under very challenging economic conditions. Even so, hundreds of new directors are appointed each year, and certain trends emerge from those appointments that reveal what many boards value in new candidates.

Les Autorités canadiennes en valeurs mobilières (ACVM) viennent de rendre public le Rapport d’inspection de l’Organisme canadien de réglementation des investissements (OCRI). Le premier constat porte sur le caractère inadéquat de l’évaluation indépendante des contrôles internes du système de suivi et de rapport de la formation continue (le SSRFC). Le deuxième constat concerne sur l’utilisation soutenue d’un service infonuagique dont les serveurs sont situés à l’étranger. Le troisième constat se rapporte à la section du Québec de l’OCRI. Selon le rapport, cette section n’a pas de responsabilités clairement définies quant à l’analyse et à l’examen des demandes d’adhésion soumises par les sociétés ou les membres dont le siège se trouve au Québec et à la formulation de recommandations à cet égard, ni aucun membre de son personnel affecté à ces fonctions. 

Chinese ecommerce giant JD.com is in “advanced negotiations” to buy Ceconomy in a deal that would value the German electronics retailer’s equity at about €2.2bn. The German owner of MediaMarkt and Saturn said JD.com was considering a cash offer of €4.60 per share in a statement on Thursday confirming an earlier report by Bloomberg. The bid would represent a 23 per cent premium to Ceconomy’s closing share price on Wednesday. The German company’s shares rose 14 per cent following the statement on Thursday afternoon. Ceconomy said “no legally binding agreements” had yet been signed, adding that it remained unclear whether an offer would ultimately be made. JD.com declined to comment.

Canada's biggest pension fund will exit a joint venture with India's Phoenix Mills in a cash deal worth 54.49 billion rupees ($630.9 million), the mall operator said on Thursday. CPP Investments' exit comes at a time when brick-and-mortar retailers are grappling with reducing footfalls and increasing competition from e-commerce platforms. The rise of quick-commerce platforms - which deliver food, groceries, home decor and even electronics under 10 minutes - has exacerbated this trend. The deal, which involves CPP's sale of a 49% stake in Island Star Mall Developers, gives Phoenix Mills full control of the Phoenix MarketCity mall in the South Indian city of Bengaluru. Island Star - a joint venture the two entities formed, opens new tab in 2017 - also operates three other malls and two commercial office spaces in Bengaluru, Indore and Pune through its units.

Comcast on Thursday named the members to the first board of Versant Media Group, its planned spinoff that will take over a bulk of NBCUniversal's cable networks, including USA Network, CNBC and MSNBC. The board will include Versant CEO Mark Lazarus, Chairman David Novak and eight other members with backgrounds spanning artificial intelligence, corporate governance and dealmaking. The spinoff is expected to be completed this year. Once it is finalized, Comcast plans to appoint Rebecca Campbell, Creighton Condon, Michael Conway and David Eun to the board. Campbell is a former Disney executive, Condon is a senior lawyer at A&O Shearman, Conway is former CEO, Starbucks North America, and Eun is a founding adviser to startup Kanza AI.

The Federal Communications Commission approved Skydance Media’s merger with Paramount Global on Thursday, clearing the way for the more than $8 billion deal to close and ending a multiyear saga with enough plot twists for a soap opera. Skydance and Paramount, the parent of the CBS television network, are expected to close their merger in the next few weeks, people familiar with the matter said. The merger will marry the smaller Skydance, a movie-and-television-production company, with the Paramount Pictures movie studio and the CBS broadcast network, as well as well-known cable channels including MTV, Nickelodeon and Comedy Central.

Intel will cut 15% of its workforce and scrap plans to spend tens of billions of dollars on new chip facilities in Europe, as it takes steps to revive its sagging fortunes. The chip-making giant said Thursday it would refocus its strategy on the highly competitive market for AI chips, regaining market share in personal-computer processors and developing its advanced 14A technology to sell to large customers. Intel, which has long dominated the business of making chips for laptops and desktop computers, fell far behind competitors such as Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing Co. after it failed to anticipate the surge in demand for the powerful chips fueling the artificial-intelligence boom.

Les entreprises canadiennes continueront probablement de réduire leurs investissements au cours des prochains mois en raison de l’incertitude économique, prévoit l’économiste en chef de la Fédération canadienne de l’entreprise indépendante (FCEI). L’association estime que les investissements privés ont chuté de 13 % au deuxième trimestre, soit d’avril à juin, après une baisse de 3,1 % durant les trois premiers mois de l’année. Elle anticipe un recul de 6,9 % au troisième trimestre, selon ses prévisions dévoilées jeudi.  « L’investissement privé est en contraction de manière assez marquée, a expliqué l’économiste en chef de la FCEI, Simon Gaudreault, en entrevue. Évidemment il y a une grande incertitude présentement dans l’environnement d’affaires et ça met sur pause beaucoup de plans d’investissements. »

Pour contourner les sanctions occidentales liées à la guerre en Ukraine, la Russie miserait désormais sur « A7A5 », une cryptomonnaie adossée au rouble, moins surveillée que ses équivalents en dollars – un circuit financier parallèle particulièrement efficace, d’après des experts interrogés par l’AFP. Lancée en février par un oligarque moldave prorusse en fuite et une banque publique russe, A7A5 vise explicitement à fournir un canal de paiement alternatif aux entreprises et aux particuliers russes qui commercent avec l’étranger, explique un rapport de l’ONG britannique Centre for Information Resilience (CIR) publié fin juin. Il s’agit d’un « stablecoin », c’est-à-dire une devise numérique censée répliquer le cours d’une monnaie classique.