The recent rash of shareholder revolts in companies such as Barclays, easyJet, Trinity Mirror, Credit Suisse, and Citigroup is just the start, ‘but more looks like the start of a trend’.
‘So while the bosses made millions, the people they are supposedly working for made nothing’
”Eventually shareholders are going to become fed up with a stock market that rewards the people who manage companies but not the people who own them.’
Matthew Lynn www.moneyweek.com 4th May 2012.
Oh, the revolution again….Pensioners who have saved all their lives are seeing minimal returns, when they expected comfortable twilight years. Then they discover what charges were taken from their returns. Governments seeking to clear their deficits by allowing inflation rates of 3%+ while deposit holders receive a pitiful 1% are seeing anger and frustration in recent polls. As for Greek, Spanish and other European countries – well, they are revolting. The US elections will be upon us soon, and the tax hikes will become Obama’s nightmare.
The talk around the board table will be all about ‘doing something’. The rise of the revolt led by Internet ‘noise’, will see a growing number of corporate charm offensives using a means new and unknown to many – the Internet. They dip their toe into ‘web water’ with misgivings at best and a naive innocence at worst that spells danger. If you, as a director, can put your hand on your heart and say, we know where we are, why we are doing it, where we are going to, and – most important, – that all of us are committed together to our shareholders (and our staff who are also in many case shareholders) then a properly portrayed web presence and message can be vital, virile and effective. If there is the slightest doubt or lack of integrity, you will not just be found wanting, but double the risk of being found out with consequences posted for all to see. Who’s for the ‘muppet award’?
Frightening, but full of potential to get it right. If you know how, great, – you will be a world leader, if not its risky. Talk to the experts – talk to us!