Each week, Bloomberg Businessweek brings you an update on how MBA alumni from top business schools are making news—the good, the bad, and the ugly. This week, graduates from Harvard, INSEAD, Columbia, and Stanford were among those making headlines:
Calling It Quits: Under pressure from lawmakers in the U.K. to step down, Barclays (BCS) Chief Executive Officer Robert Diamond resigned, effective immediately, after the bank admitted to rigging global interest rates. Earlier, regulators had imposed record fines of $455 million on the bank for falsifying its London interbank offered rate submissions to manipulate the so-called Libor rate. The manipulation of the Libor, the benchmark rate for $360 trillion in securities, hid Barclays’s true cost of borrowing as financial markets were roiled by the Lehman Brothers collapse in September 2008. Diamond has an MBA from the University of Connecticut.
New Position: Vodafone (VOD) tapped INSEAD MBA Paolo Bertoluzzo to run a European regional unit as the company revamps its structure. Vodafone is splitting its European unit into two divisions. Philipp Humm, the former CEO of Deutsche Telekom’s (DTE) T-Mobile USA, will be in charge of northern and eastern Europe, while Bertoluzzo will be responsible for southern Europe.
Moving On Up: AOL (AOL) promoted Chief Financial Officer Arthur Minson, an MBA graduate of Columbia Business School, to chief operating officer, where he’s expected to reorganize the company’s operations into three units. Minson will continue as CFO until a replacement is found.
Tech-Savvy Addition: The New York Times Co. (NYT) is adding venture capitalist Brian McAndrews, a graduate of the Stanford University’s MBA program, to its board as part of a move to bolster technology experience as the industry moves online. The addition of McAndrews, a partner with Madrona Venture Group, and Joichi Ito, director of the MIT Media Lab, brings the board to 13 members.
Founder Steps Down: Jerzy Wisniewski, founder and CEO of Polish builder PBG (PBG) and an MBA from the Erasmus University Rotterdam School of Management, stepped down following the company’s bankruptcy. Wisniewski, who founded the company with his wife in 1994, is expected to join the firm’s supervisory board.
Pay Cut: Investec (INVP) cut CEO Stephen Koseff‘s compensation by 87 percent, to $703,305, after profit dropped and shares plummeted. Koseff, who asked not to receive a bonus in 2012, was South Africa’s highest-paid banker in 2011. (The research firm Prophet Analytics has declared him the country’s most overpaid CEO.) Koseff has an MBA from the University of Witwatersrand.
Winning Is Good: Hunter Harrison, the CEO nominee of hedge fund manager William Ackman, won the job at Canadian Pacific Railway (CP)—six weeks after Ackman won his proxy fight at the company. Harrison, the former CEO of Canadian National Railway (CNR), has vowed to slash operating expenses. Ackman received his MBA from Harvard Business School.
High Cost of Leaks: Nomura Holdings (NMR) vowed to cut top executives’ pay, including that of Chief Operating Officer Takumi Shibata, a Harvard Business School MBA graduate. The move came following an internal investigation into leaked information and a government crackdown on insider trading.
Big Shoes to Fill: John Allison, former BB&T (BBT) CEO and MBA grad from Duke University’s Fuqua School of Business, was chosen to lead the Cato Institute. Allison replaces Ed Crane, who co-founded the libertarian institute and served as its CEO for 35 years.