Staying powers

Message for boards out there worried about their chief executives in these times. A paper from a US not-for-profit called Focusing Capital on the Long Term (FCLT) Global suggests the debate over combining the roles of CEO and chair is less important than the “tenure” of the CEO.

FCLT research director Victoria Tellez writes: “Serving as both chair and CEO is not inherently good or bad—in fact, CEOs who hold both roles tend to remain in office longer, by an average of three years, than peers who do not.

“The more consequential issue is not formal structure, but how boards design leadership and oversight of shorter CEO tenures.

“As leadership cycles compress, the risk to long-term value lies in repeated strategic resets, erosion of institutional memory and underinvestment in long-term priorities.”

Lots to unpack there, but not convinced investors this side of the Atlantic will buy that message.

Accounting basis

Watchdogs have opened an investigation into the conduct of two accountants in relation to accounting at housebuilder Vistry.

The Financial Reporting Council will be probing behaviour during the financial years ended December 2023 and 2024. The Financial Times reports that Vistry “repeatedly downgraded profit forecasts after underestimating costs”.

And the two people under investigation are now “former” Vistry employees. Sometimes financial statements are built on sand, er… so to speak.

Shelling out

Much attention has been drawn by a decision by the board to bump the deal of Shell CEO Wael Sawan (pictured, above) from £8.6m in 2024 to £13.8m last year. Reuters reports that this would be the “first time he [Sawan] could tap the full CEO policy as part of a three-year cycle after taking the helm in 2023″.

Not everyone is impressed. Andrew Speke, interim director at The High Pay Centre, a think tank, put out a statement insisting the news would be “deeply unpopular”.

“The substantial pay rise for the CEO of Shell plc appears to be part of wider pattern in which leading FTSE 100 companies are showing much less restraint in executive remuneration.”

Beers—and Rolexes—are on Sawan.