Reuters - Video

EDITION: U.S. | U.K. | IN

9/11

Breakingviews: Sign of the Times

Thursday, May 22, 2014 - 03:20

May 22 - Jeffrey Goldfarb and Rob Cox explain how a management imbroglio at the New York Times provides a lesson for investors surrendering their rights at the likes of Facebook and Alibaba.

▲ Hide Transcript

View Transcript

The big imbroglio at the New York Times. I executive editor Jill Abramson was fired. Create a lot of media navel gazing. But there is a liar larger sort of business perspective here involving corporate governance talked with a little well yeah I mean as you say to the entire New York media world was going crazy because. Arthur Sulzberger junior who's the publisher and the chairman new York times company publicly traded company. That -- times. Basically fired her without giving any abruptly don't just talk okay. You -- this void of no information which was still pretty quickly with what the irony is pretty Richard Neer a newspaper company thinking that it was gonna -- fire somebody without -- explain I mean they should know better that Sulzberger family the board they should know better that when you. Put up this kind of make this kind of decision don't actually fill it with a proper explanation that. Basically news reporter they're gonna try to find and there's all kinds of theories became in charge of the meeting in less than male counterpart all of which he's come out and that case anyway that the company said that it wasn't true. That you -- to look at compensation broadly of course rotten but is also our defensive rather than -- has but the point we -- making is that the new York times company that is slightly odd companies it has. This shareholding structure of the -- Sulzberger and his family. An extraordinary amount of power and they can basically elect 70% of the directors and it was inherited. Fraud and there's terror instruments finally -- and you know -- ultimately yes yes and it's been it's been part of the company's bylaws for for decades. I'm and that it offers an unusual amount of protection. To the chairman who is effectively runs the show. And enhance its name on is an instant results yet so the issue is a from a business perspective does this tell us something about governance because. Right now I see companies that are coming out. Well yeah FaceBook famously you have to -- -- -- you come out about that also have similar arrangements that give. Concentrated power concentrated power in -- all of all of them are a little bit different and some have. You know some of them actually expire when these folks go lower dire pass on the so there's an inherently in the one hand there's this idea that. Yet founders OK we can see maybe how you trust right visionary founder and Mark Zuckerberg needs you just turned thirty government and we've given this kid extraordinary power because. He's a great visionary -- we know that he's fully involved the company. The same may be true Jack mind his partners who have basically called. Out run the director ships at -- about question is the necklace it's it's sort of you know didn't generation the generation after that now. You know what you have here is it a case where you know that guy who's running it basically -- heeded necessarily great company or yes. Driven company that way he's in some of his decisions quickly regarding personnel. Are absolutely are questionable and that's that's what we see him to labor and some sound Janet Robinson CEO. We -- Anderson is that he's a sort of serial management state guide. So in normal company. That would probably pressure I have not shareholders commensurate with the economic interest would start to push possibly for is that. But the reason that -- times because governments are we will leave it there thanks our rob will be back with more breaking news tomorrow.

Breakingviews: Sign of the Times

Thursday, May 22, 2014 - 03:20

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)