Banco Popolare: the trade-off between dilution and egregious payout, an example of risky ?tick-boxing? approach

On January 2010 Banco Popolare launched a rights issue allowing its existing shareholder to subscribe to Banco Popolare’s convertible bonds with the following conditions: nominal value of € 6.15, fixed interest rate at 4.75%, maturity March 2014. Starting from November 2011, bondholders are able to redeem the convertible bonds receiving an amount of shares equivalent to note’s nominal value plus 10% premium.

Audit fees in Europe

Düsseldorf, 12 October 2011 – All roads in Europe lead to the “Big Four” (PwC, KPMG, Ernst & Young and Deloitte). This is confirmed by a study issued by ECGS (Expert Corporate Governance Service) which is specializing in proxy voting advice and whose German partner is DSW (Deutsche Schutzvereinigung für Wertpapierbesitz). Altogether 93 percent of the analyzed companies are audited by one of the Big Four.

UBS : another case of rogue uncontrolled trading

The $ 2.3 billion loss reported by UBS London this September on uncontrolled positions of $ 10 billion just validates the ECGS analysis.

Chief Executive of UBS, Oswald Grubel, had claimed to have put in place new risk management practices, pulled back from proprietary trading and focused on a low-risk client-driven model.

US shareholders cannot nominate Directors: the SEC renounces to the enforcement of the ?proxy access rule?


European shareholders, sometimes dissatisfied with the lack of respect of companies for the principle of sovereignty of shareholders should watch the misfortune of U.S. investors.

The ICGN Conference and the UK Vickers report

On September 12 the International Corporate Governance Network ICGN opened in PARIS its annual gathering of responsible investors.

DSW publishes its brand new Directors' Pay Survey 2011

Public and political interest in directors’ pay has significantly increased in recent years; awareness but also criticism has never been greater. DSW, Germany’s largest investor association, has been taking a close look at the topic of Directors’ Pay since 2001. Our annual survey has significantly added to the public awareness and consequent debate regarding regulation and salary limits.

ECGS answers to the EU Green Paper

Please find our answers in the PDF here.

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