The guiding principle for annual reports

A review of blog post "Non-GAAP reporting: everything has its place" from PWC

To say that annual reports are highly variable is a dramatic understatement. Despite some industry guidelines on what should be included (particularly relating to detail and clarification of financial statements), most annual reports make it difficult for readers to assess key points on a company’s financial health and direction. For the preparer, annual reports present a daunting task in structuring a vast quantity of information into effective business communication that does not mislead investors through poor data presentation or omission of pertinent information.

Kraft-Cadbury merger presentation – how did they do?

After listening to Kraft’s merger presentation to investors (available in webcast on the their web site), I would give the presentation a solid “B” grade. It certainly wasn’t emotional (in fact, you could hear the weariness in Kraft CEO Irene Rosenfeld’s voice), but you really don’t want an emotional tone in investor presentations anyway (especially when discussing mergers). It was a nice, concise presentation that focused on positives of the deal and laid out the rationale in a very clear manner.

Beware of charismatic business leaders

From Article in November 2009 Organization Science

Charisma is undoubtedly a coveted trait in business, especially for those in (or aspiring to hold) leadership positions. A charismatic leader can rally customers, employees, shareholders, board members, and key constituents, around his or her vision and take a company to great new heights. In times of trouble, a charismatic leader is almost a necessity.

But what about the downside of charismatic leadership? What happens when charisma misleads?