KPN says finance chief leaving for personal reasons

KPN's Chief Executive Officer Eelco Blok (R) and Chief Financial Officer Eric Hageman speak after the presentation of the 2011 fourth quarter and annual results in The Hague January 24, 2012.

Credit: Reuters/Michael Kooren

BRUSSELS | Mon Sep 9, 2013 2:23am EDT

BRUSSELS (Reuters) - Dutch telecoms group KPN, the subject of a takeover bid by Mexico's America Movil, said on Monday its chief financial office Eric Hageman had resigned with immediate effect, only a year after taking the job.

The group said in a statement that Hageman was resigning due to personal circumstances and that this was not related to working relationships or the present situation of the group.

"KPN will make a further announcement regarding the CFO role as soon as possible," KPN said.

Hageman was appointed chief financial officer and a member of the management board in September 2012. He had been interim CFO since January 2012 when his predecessor, Carla Smits-Nusteling, unexpectedly quit citing objections over internal governance.

KPN said in its statement that Hageman had made an important contribution to the raising of capital, notably a 3 billion euro ($3.95 billion) rights issue, in 2013 and the intended sale of German mobile unit E-Plus to Telefonica.

The statement made no mention of America Movil, which has bid 2.40 euros to buy the shares in KPN it does not already own.

The Mexican company, controlled by billionaire Carlos Slim, owned nearly 30 percent of the Dutch group until a foundation tasked with protecting the interests of KPN exercised an option to give itself about 50 percent of KPN's voting stock, diluting America Movil's stake.

The move dents the prospects of Slim's proposed 7.2 billion euro offer.

($1 = 0.7600 euros)

(Refiles to remove extraneous word from headline)

(Reporting By Philip Blenkinsop; Editing by Sara Webb)

View the original article here

Do you need a Chief Operating Officer for HR?

Subscribe to receive updates when new Debates are released:
 E-mail |   RSS (What is RSS?) | Vote on the Debates | Join the Conversation

As organizations look to deliver more value through the HR function, some are establishing a HR Chief Operating Officer (COO) role. Good idea? Bad idea? The next new thing?

Despite the demonstrated benefits of HR Transformation (HRT), business executives and HR leaders continue to voice frustration with HR’s ability to deliver value. With no shortage of talented people doing great work, all signs point to the need to continue to rethink HR organizations themselves. One new idea is the emergence of an HR COO role designed to drive performance improvements across the entire HR organization. Should you make the leap?

Here's the debate.

Make the leap.
Global HR service delivery is growing exponentially more complicated. It makes good sense to separate program development from operational implementation, so all roles can focus on their strong suits.What’s the rush?
Our plate is full with important business initiatives and this doesn’t really help with our top priorities. Besides, what’s the rush? As we learned with HR business partnering, it takes time for things to mature and deliver the promised value. Why is the HR COO any different?Something has to change.
Business leaders aren’t getting the services they want, especially when initiatives span multiple business units and geographies — like with merger integration or an HR transformation. That’s where an HR COO can really add value.Something – but not this.
Isn’t this the role of HR leadership already? Adding in a new senior HR executive to do this doesn’t make sense. Focus instead on better project management and execution. There’s no need to radically change responsibilities and reporting structures.The current level of complexity is crippling.
The HR COO allows for specialization to manage the real complexity you’re already facing. Other executives can focus on what needs to get done – while the HR COO takes the reins on how it gets done.Sounds like we’ll need to hire Superman.
You’re describing someone with experience in HR, finance, technology, operations and executive leadership – with a focus on HR service delivery and operations. No one person can measure up to all that.This moves toward excellence.
Talented operations professionals can make a deep and immediate impact – creating processes that serve people instead of the other way around. They bring hard-nosed accountability and performance, which is exactly what business leaders are looking for.This is a move toward chaos.
Just hire stronger HR execs. This role sounds like it’s being created to fill a capabilities gap in the existing leadership team. Our talent model for HR executives needs to change to include strong operating skills in everyone.

Jason Geller, Principal, Deloitte Consulting LLP

Robin I. Lissak, Principal, Deloitte Consulting LLP

Establishing the HR COO role may be the shortest path to sustainable value from your global HRT investments. Making the call requires bold leadership.

If there’s one thing HR professionals agree on today, it is that the business wants more — not less — from HR. But when business and HR leaders sit down to work together, they often find themselves focused less on what needs to be done and more on how. That’s a waste of time, because we already know what business leaders are looking for: better, faster and cheaper services that are more strategically aligned with business objectives.

The challenge of meeting these expectations has stymied even the best HR organizations. Especially when coordination is required across multiple business units and geographies. In those areas, integration is often handled on an ad hoc basis through an informal network of “go-to” HR people – with success hinging on relationships and special effort rather than reliable processes, lines of authority and structure. As a result, there’s often a gap between the expectations of business leaders and what HR is set up to deliver.

To improve performance, we propose a simple step in the evolution of HR organizations: a division of responsibility between HR executives charged with making broad, strategic choices and those focused more on operational execution. This requires creating a new, senior HR role — the HR Chief Operating Officer. It’s a key step in clearing the way for CHROs to focus on what needs to get done, with support from an HR COO who has responsibility for how it gets done.

Final thought. The HR Chief Operating Officer is not a role that someone can be phased into over time. Nor can it be piloted. It requires a depth of conviction from CHROs who know they are not yet delivering the services that the business needs.

Library: Deloitte Debates
Services: Consulting
Overview: Human Capital, HR Transformation

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Select an attachment to view or download.

View the original article here

Cyprus central bank chief calls for its independence to be respected

NICOSIA, April 14 | Sun Apr 14, 2013 4:58am EDT

NICOSIA, April 14 (Reuters) - Cyprus's central bank governor said on Sunday he was willing to work with the government to pull the island out of its economic crisis, provided the bank's independence was respected.

A rift between Governor Panicos Demetriades, appointed last May by the communist former administration, and the ruling centre-right government has deepened in recent days and pressure has grown on him to resign over his handling of the crisis.

In the past week, the Cypriot parliament started an investigation against Demetriades, President Nicos Anastasiades's government withdrew the appointment of his deputy, and three central bank officials resigned.

The ongoing saga drew a scathing response from European Central Bank (ECB) President Mario Draghi, who wrote to the Cypriot president telling him any attempt to effectively sack the governor could land Cyprus in the European Court of Justice.

"My intention to work with the country's democratic institutions is a given," Demetriades was quoted as saying in an interview with the Phileleftheros newspaper.

"We are ready to respond to every call for cooperation and coordination for the benefit of this country always, however within the framework of total respect towards the central bank's independence, as stipulated by the ECB."

Under European Union law, a governor can only be dismissed if he no longer fulfils the conditions required for the performance of his duties, or if he is guilty of serious misconduct.

The investigation launched by Cypriot lawmakers this week is seeking to find out whether Demetriades supplied enough information during an investigation into the demise of Cyprus's two biggest lenders, which left the economy in disarray.

The collapse of the Mediterranean island's banking system imposed massive losses on depositors in order to qualify for a 10 billion euro ($13 billion) bailout by the European Union and International Monetary Fund.

The departures in the past week from the regulator's board have slimmed the six-member board to two, including Demetriades. However, executive power rests with the governor so while they add to the pressure on Demetriades to quit, they are not expected to affect policy-making.

The government, in power for under two months, has sought to play down accusations it was intervening with the central bank's duties.

Government spokesman Christos Stylianides said authorities demanded Demetriades take back comments he made on the sidelines of a Eurogroup meeting in Dublin this week that the central bank's independence was under attack.

View the original article here

State Street electronic FX chief departs in leadership shake-up

BOSTON, April 13 | Sat Apr 13, 2013 1:59pm EDT

BOSTON, April 13 (Reuters) - State Street Corp said on Saturday the top executive of its electronic foreign exchange trading business has left the company in a leadership shake-up.

The departure of Clifford Lewis raises questions about the direction of Boston-based State Street's high-frequency trading platform for forex called Currenex. Lewis was chief executive and chairman of Currenex when State Street agreed in 2007 to buy the company for nearly $600 million in cash.

"Because we have combined teams and solutions that previously resided within other business units, we've had to make tough decisions about leadership, and Cliff Lewis left as a result of those decisions," said State Street spokeswoman Carolyn Cichon. "We are very grateful for the contributions he has made and strong management team that he leaves behind."

Lewis did not return messages seeking comment. He was an executive vice president at State Street and head of the e-Exchange business, which includes Currenex, FXConnect and a range of other trading platforms. The e-Exchange FX businesses averaged over $150 billion in daily volume in 2012, making them one of the largest FX trading platforms in the world. Lewis also managed State Street's derivatives and bond clearing businesses.

View the original article here

UPDATE 1-State Street electronic FX chief departs in shake-up

By Tim McLaughlin

BOSTON, April 13 (Reuters) - State Street Corp said on Saturday the top executive of its electronic foreign exchange trading business has left the company in a leadership shake-up.

The departure of Clifford Lewis raises questions about the direction of Boston-based State Street's high-frequency trading platform for forex called Currenex. Lewis was chief executive and chairman of Currenex when State Street agreed in 2007 to buy the company for nearly $600 million in cash.

"Because we have combined teams and solutions that previously resided within other business units, we've had to make tough decisions about leadership, and Cliff Lewis left as a result of those decisions," said State Street spokeswoman Carolyn Cichon. "We are very grateful for the contributions he has made and strong management team that he leaves behind."

On Friday, State Street said Jeff Conway would oversee a global exchange group that included electronic FX trading, data analytics and derivatives clearing.

Lewis was not mentioned in the reorganization announcement. He did not return messages seeking comment.

Lewis was an executive vice president at State Street and head of the e-Exchange business, which includes Currenex, FXConnect and a range of other trading platforms. The e-Exchange FX businesses averaged over $150 billion in daily volume in 2012, making them one of the largest FX trading platforms in the world. Lewis also managed State Street's derivatives and bond clearing businesses.

Last year, though, State Street's revenue from electronic forex trading fell 16 percent to $210 million from $249 million in 2011, according to company financial statements. The company blamed declines in currency volatility and pricing. Total FX trading revenue at State Street fell 25 percent in 2012.

Part of the drop was related to a shift away from non-negotiated FX trades by State Street customers, such as state-run pension funds. On those trades, it has been alleged that State Street had been overcharging customers, an accusation the company has steadfastly denied.

Lewis' operations did not include non-negotiated trades. Instead, Currenex, for example, focused on sophisticated algorithmic trading, which uses computers to place orders that sometimes are executed within milliseconds.

These high-frequency FX trades are a big area for potential growth at banks. Computer-run algorithms allow hedge funds, for example, to unload large amounts of currencies without tipping their hand. They can also read and interpret news and economic data releases, generating trading orders before the rest of the forex market is fully aware of what is happening.

View the original article here

Cyprus central bank chief calls for its independence to be respected

NICOSIA, April 14 | Sun Apr 14, 2013 4:58am EDT

NICOSIA, April 14 (Reuters) - Cyprus's central bank governor said on Sunday he was willing to work with the government to pull the island out of its economic crisis, provided the bank's independence was respected.

A rift between Governor Panicos Demetriades, appointed last May by the communist former administration, and the ruling centre-right government has deepened in recent days and pressure has grown on him to resign over his handling of the crisis.

In the past week, the Cypriot parliament started an investigation against Demetriades, President Nicos Anastasiades's government withdrew the appointment of his deputy, and three central bank officials resigned.

The ongoing saga drew a scathing response from European Central Bank (ECB) President Mario Draghi, who wrote to the Cypriot president telling him any attempt to effectively sack the governor could land Cyprus in the European Court of Justice.

"My intention to work with the country's democratic institutions is a given," Demetriades was quoted as saying in an interview with the Phileleftheros newspaper.

"We are ready to respond to every call for cooperation and coordination for the benefit of this country always, however within the framework of total respect towards the central bank's independence, as stipulated by the ECB."

Under European Union law, a governor can only be dismissed if he no longer fulfils the conditions required for the performance of his duties, or if he is guilty of serious misconduct.

The investigation launched by Cypriot lawmakers this week is seeking to find out whether Demetriades supplied enough information during an investigation into the demise of Cyprus's two biggest lenders, which left the economy in disarray.

The collapse of the Mediterranean island's banking system imposed massive losses on depositors in order to qualify for a 10 billion euro ($13 billion) bailout by the European Union and International Monetary Fund.

The departures in the past week from the regulator's board have slimmed the six-member board to two, including Demetriades. However, executive power rests with the governor so while they add to the pressure on Demetriades to quit, they are not expected to affect policy-making.

The government, in power for under two months, has sought to play down accusations it was intervening with the central bank's duties.

Government spokesman Christos Stylianides said authorities demanded Demetriades take back comments he made on the sidelines of a Eurogroup meeting in Dublin this week that the central bank's independence was under attack.

View the original article here

BUYOUTS-Harvard's private equity chief resigns

* Spent 18 years at world's biggest endowment

* Managed portfolio of $4 billion in PE capital

* Highly influential with other investors

By Gregory Roth

April 12 (Reuters-BUYOUTS) - Peter Dolan, the director of private equity and venture capital for the Harvard Management Company, manager of the world's biggest endowment, stepped down on April 10. The departure comes at a critical time for the endowment's $4 billion private equity portfolio, which is set to expand as the university shifts to a more aggressive approach to the asset class.

Dolan had worked for Harvard Management Company, which oversees the university's $30.7 billion endowment, for 18 years, joining the unit in 1995. On an interim basis, Dolan will be replaced by John Shue, according to a person familiar with Dolan's decision.

Dolan and Shue did not respond to calls seeking comments. A university spokesman also declined to comment, saying that Harvard does not comment on personnel moves.

Considered by many to be the dean of endowment private equity chiefs, Dolan reported directly to Jane Mendillo, Harvard Management Company's chief executive.

Before joining Harvard Management Company, Dolan worked for Cambridge Associates, a private equity advisory firm, and Liberty Mutual Insurance Co. He received a B.A. from Harvard in economics, and an M.B.A. from the University of Virginia.

News of Dolan's departure first appeared on Term Sheet, Fortune Magazine's private equity blog.

During the 2012 fiscal year, which ended on June 30, private equity was an underperformer for Harvard, with the asset class lagging the university's internal benchmark by 205 basis points. Private equity returned 1.99 percent against its 4.04 percent benchmark, according to Harvard Management Company's annual report to trustees.

Private equity, which for Harvard includes venture investments, was the only one of five asset classes to underperform its internal benchmark. The underperformance contributed to the endowment's overall 0.05 percent loss for the year, and also led Harvard to deliver worse returns than many of its peer institutions, most of which reported positive returns.

In fiscal 2009, Harvard was badly impacted by the financial crisis and the value of its endowment fell by 27 percent, or more than $10 billion, a result also more severe than its endowment peers. The size of Harvard's endowment has still not completely bounced back to its pre-crisis levels.

Private equity represented 13 percent of Harvard's portfolio as of June 2012, and its policy target for the asset class is set to rise to 16 percent. In its 2012 report to trustees, the university said it had become more bullish on the asset class.

"In recent years, HMC has been more cautious about private-equity investments, reflecting ... increased competition for such assets," said the report. "Now, however, there are indications that the investment managers see some emerging opportunities, and are aiming to increase the policy-portfolio weighting by a couple of percentage points over the next several years."

View the original article here

UPDATE 3-Judge denies $20 million severance to outgoing AMR chief

* CEO Horton's payout set in AMR-US Airways merger

* Judge says payment not authorized under bankruptcy law

* AMR plans to address severance in reorganization plan

By Jonathan Stempel and Tanya Agrawal

April 12 (Reuters) - A judge has rejected a proposed severance package of nearly $20 million for Thomas Horton, the chairman and chief executive officer of American Airlines parent AMR Corp, saying the payout was not allowed under federal bankruptcy law.

U.S. Bankruptcy Judge Sean Lane in Manhattan issued his decision on Thursday, after having approved at a March 27 hearing AMR's planned $11 billion merger with US Airways Group Inc.

Horton's $19.9 million severance had been part of the merger agreement and was to consist of equal amounts of cash and shares of the combined company.

Lane had suggested at the hearing that severance might be better addressed in AMR's reorganization plan, which the company has yet to submit and which requires creditor approval.

U.S. Trustee Tracy Hope Davis, a Department of Justice monitor for the bankruptcy, also opposed Horton's severance.

"It's American Airlines' current intention to address Mr. Horton's compensation arrangement in the plan of reorganization," said Mike Trevino, a spokesman for the carrier.

The combined company would be run by US Airways CEO Doug Parker, with Horton as nonexecutive chairman. Parker would become chairman after the first annual shareholder meeting, probably in the spring of 2014.

The plan of reorganization will address how creditors will get paid back. Shareholders of AMR may end up with a stake of at 3.5 percent in the combined company, which an attorney for AMR's creditor's committee has said could be valued at between $350 million and $400 million.

Horton first joined AMR in 1985, left in 2002 for a four-year stint at AT&T Corp and then returned. He became CEO of AMR when it filed for bankruptcy in November 2011.

AMR at first opposed merging while still in bankruptcy, but reversed itself under pressure from creditors. The merger would create the world's largest airline, and AMR and US Airways hope to save more than $1 billion of annual costs by 2015.

UNCLEAR PURPOSE

Davis had called Horton's proposed payout too large relative to severance for nonmanagement workers, and improper because it was not part of a program for full-time workers in general.

Lane rejected AMR's argument that these restrictions did not apply because the payout would be made - or could be voided - by the combined company after the merger closed.

"It is unclear what purpose would be served by the court's approval of the severance if (the combined company) could later veto the severance through a vote of its board," he wrote.

The judge also said deferring to AMR's "business judgment" in allowing the payout was "exactly what Congress sought to prevent" in capping severance awards by companies in bankruptcy.

AMR has said the payment to Horton recognized his efforts in leading the company through bankruptcy and into the merger.

Its lawyer, Stephen Karotkin, told Lane on March 27 that the desire of AMR directors to maximize value and see the merger through justified payments to Horton and others.

The combined carrier would take the American name and be based in AMR's hometown of Fort Worth, Texas. US Airways is based in Tempe, Arizona.

The case is In re: AMR Corp et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-15463.

View the original article here