INTERNET
AOL reverses benefits policy
AOL Inc is reversing a new policy for staff retirement plans that would have forced employees who leave before the end of the year to forfeit benefits. AOL, owner of Web sites such as the Huffington Post, will change the policy back to matching staff contributions for each pay period, instead of making payments in an annual lump sum, chief executive officer Tim Armstrong said in a memo on Saturday to employees seen by Bloomberg News. The policy change comes after Armstrong two weeks ago blamed US President Barack Obama’s healthcare law for creating an additional US$7.1 million expense for the company, which prompted AOL to seek costs savings by cutting benefits. Other companies, including United Parcel Services Inc, also cited the law for some cuts to its spending on benefits.
OIL
OGX sold to creditors
Brazilian tycoon Eike Batista will turn over the bulk of his debt-ridden OGX oil company to creditors in a US$215 million deal that aims to ensure the firm continues to operate. Under a deal announced on Saturday the newly-renamed Oleo y Gas Participaciones (OGP) will create US$215 million worth of shares, in two stages, pending regulatory approval, said a statement from the company.
The creditors agreed to acquire the 65 percent stake, a spokesman told reporters adding that existing shareholders will be left with just 10 percent, while company founder Batista’s stake will be reduced to 5 percent. The oil firm emphasized this type of financing constitutes “a key element in the restructuring of the company.”
SMARTPHONEs
US drops Samsung case
US Department of Justice (DOJ) officials on Friday dropped an antitrust investigation into whether Samsung abused essential mobile gadget patents in its ongoing battle with Apple. At issue was whether the South Korean consumer electronics giant tried to gain advantage using “standards-essential patents” on technology that considered a basic requirement in smartphones or tablets. Since such technology is needed to make devices viable based on industry standards, rights to use it are to be made available at fair market rates, according to marketplace rules. The DOJ antitrust division began investigating last year when Samsung convinced the US International Trade Commission to ban certain iPhone and iPad models from the US based on SEPs. In June, the commission said it issued a “limited exclusion order” for certain devices made by Apple, in a victory for Samsung. The scenario raised a concern that Samsung might be “exploiting the market power obtained through the standards-setting process,” the DOJ said in a release.
BANKING
Barclays bonuses drop
Barclays PLC will limit the cash portion of investment bankers’ bonuses to £140,000 (US$229,400), 24 percent below last year’s level, a person with knowledge of the plans said. Bonuses for the London-based bank’s 1,200 managing directors for last year will be deferred and paid in three installments, said the person, who asked not to be identified because the plans have not been made public. The cap compares with a maximum of £185,000 last year, the person said. Chief executive officer Antony Jenkins said two weeks ago he will turn down his bonus, acknowledging that regulatory penalties and lawsuits have continued to impose costs on the bank after it raised £5.8 billion from shareholders in October.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last