The shares of a company may rise or fall based on arrivals and departures at the top
12 September 2024 - 04:00
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
It’s a great question that raises all sorts of others, including what good directors are worth.
It is fascinating how the shares of a company may rise or fall based on arrivals and departures at the top. Sometimes the remuneration packages bear little relation to performance and share price — think a former Woolworths CEO and the current Sibanye-Stillwater CEO.
Another question to be asked: what metrics are applied? I would argue that one should track the value of the brand(s) they are responsible for — is it going up or down?
Recent research in the UK shows that two-thirds of all business leaders reluctantly agree that they don’t understand much about digital solutions and channels. That probably applies even more so in South Africa, to which could be added reputation and brand issues. This highlights the need for one-on-one conversations with those who know to improve understanding and save public embarrassment by having to admit you don’t know.
Some will know the term “fomo”, the fear of missing out. We can add to that “folo”, the fear of looking old! For brands and people, the challenge is always to stay relevant.
Jeremy Sampson By e-mail
The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: The measure of a good executive
The shares of a company may rise or fall based on arrivals and departures at the top
The article “What is a good executive worth?” (Investors Monthly, August 2024) refers.
It’s a great question that raises all sorts of others, including what good directors are worth.
It is fascinating how the shares of a company may rise or fall based on arrivals and departures at the top. Sometimes the remuneration packages bear little relation to performance and share price — think a former Woolworths CEO and the current Sibanye-Stillwater CEO.
Another question to be asked: what metrics are applied? I would argue that one should track the value of the brand(s) they are responsible for — is it going up or down?
Recent research in the UK shows that two-thirds of all business leaders reluctantly agree that they don’t understand much about digital solutions and channels. That probably applies even more so in South Africa, to which could be added reputation and brand issues. This highlights the need for one-on-one conversations with those who know to improve understanding and save public embarrassment by having to admit you don’t know.
Some will know the term “fomo”, the fear of missing out. We can add to that “folo”, the fear of looking old! For brands and people, the challenge is always to stay relevant.
Jeremy Sampson
By e-mail
The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za
ALSO READ:
MARC HASENFUSS: What is a good executive worth?
JEREMY SAMPSON: Intangibles — a firm’s invisible strengths
ANN CROTTY: No simple solution to the executive pay problem
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.