FDs 'spending too much time babysitting investors'
Margaret Ewing says investor activism is distracting corporates from the management of their businesses
Margaret Ewing says investor activism is distracting corporates from the management of their businesses
Deloitte vice-chairman
Margaret
Ewing says that managers are increasingly struggling to balance the demands
of investors with management of their companies.
According to a survey by the firm, managers are spending a significant and
increasing proportion of their time on investor relations, instead of focusing
on running their businesses in a UK environment in which investor activism is
already a feature.
Nearly 60% of the companies surveyed had not developed plans to respond to
public activism. Almost half of them had also not appointed professional
advisers to assist with investor relations activity, particularly with regard to
communications and messaging.
Ewing, the former BAA financial director, said it is estimated that 25-35% of
a chief executive’s and chief finance officer’s time is spent on investor
relations rather than direct value-adding business activity.
‘Seventy percent of CEOs and CFOs meet their company’s top 15 investors twice
a year or more, and greater than three quarters of respondents say they meet new
or potential investors when they are identified, regardless of the fact that
many hold shares for an increasingly short period,’ said Ewing.
Further reading:
SEC helps investors compare top execs’ salaries
Green concerns key for ethical investors
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThere is optimism that the IPO market will rebound in the second half of 2024, driven by pent-up demand and potential improvements in economic conditi...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleKPMG confirms reappointment of it's UK chair, while EY announces Janet Truncale as the next EY global chair and CEO Read More...
View articleThe ICAEW has announced the appointment of its forthcoming chief executive Read More...
View articleThe FRC has announced Richard Moriarty as its new chief executive, replacing Sir Jon Thompson Read More...
View article