Abstract
With a clear intention and real commitment, it is entirely feasible to build an enduring institution that can create value for customers and wealth for shareholders on an ongoing basis. It is also possible that if desired, a similar outcome can be achieved in a way that also enhances the wellbeing of all legitimate stakeholders including the wider community and the environment. This chapter describes the primary components involved in building an enduring instituion of this nature.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Quoted in Combet, Greg, “The Sickening Silence of Business”, The Age, 5 August 2004.
- 2.
Unilever Plc is an excellent example of this phenomenon – as was evident in Figs. 7.3 and 7.4 in Chapter 7. It has often failed to meet the market’s EP expectations over the short term. But at the same time, it has been able to steadily enhance the shape of its EP Bow Wave by establishing new EP expectation to be delivered beyond the measurement period.
- 3.
At the time of writing, the presentation given to the Governance Institute of Australia Annual Conference in December 2015 was available from this link: https://www.kba.com.au/publications/driving-long-term-value-creation/.
- 4.
The Two-Strikes Rule was introduced in Australia in July 2011. It is designed to hold directors accountable for executive salaries and bonuses. One of its consequences is that an entire company board can face re-election if shareholders disagree with how much executives are being paid. The “first strike” occurs when a company’s remuneration report — which outlines the individual salary and bonus paid to each key management person — receives a “no” vote of 25 per cent or more by shareholders at the company’s annual general meeting. The “second strike” occurs when a company’s subsequent remuneration report also receives a “no” vote of 25 per cent or more. When a “second strike” occurs, the shareholders will vote at the same AGM to determine whether all the directors will need to stand for re-election. If this “spill” resolution passes with 50 per cent or more of eligible votes cast, then a “spill meeting” will take place within 90 days.
Shareholder say-on-pay rules have existed in many European countries for some time – being introduced in the UK in 2003, in the Netherlands in 2004, in Sweden in 2006, in Norway and Denmark in 2007, and in Belgium in 2012.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Kilroy, D., Schneider, M. (2017). Building an Enduring Institution. In: Customer Value, Shareholder Wealth, Community Wellbeing. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-54774-9_10
Download citation
DOI: https://doi.org/10.1007/978-3-319-54774-9_10
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-54773-2
Online ISBN: 978-3-319-54774-9
eBook Packages: Business and ManagementBusiness and Management (R0)