22 May CEOs MUST THINK SHORT-TERM; FACEBOOK ON REMOTE WORKING; CRACKDOWN ON CLASS ACTIONS
Welcome to today’s business and media intelligence, with insights collected over the past 24-hours.
CEOs MUST THINK SHORT-TERM
- There is a stark contrast between running companies during the good times and bad, according to Westpac chairman John McFarlane. For many companies, transformation, growth and expansion plans will need to be replaced by a short-term focus on revenue generation, cost-cutting, execution and the ability to make decisions quickly and motivate anxious staff. Rebecca McGrath, chairman of OZ Minerals, argues that the attributes required by CEOs in the current climate include sound judgment, strong analytical, risk management and communication skills, quick decision making, and a deep understanding of technology. Read more on CEOs and their crisis playbook in The AFR’s BOSS Magazine. (Subscriber access)
TAKE A LEAF OUT OF OUR BOOK: FACEBOOK ON REMOTE WORKING
- Facebook has announced plans to shift towards a more remote workforce, with Mark Zuckerberg estimating that half of the social media giant’s staff could be working remotely in the next five to 10 years. Zuckerberg shared the plans externally in case it was “helpful to other organisations thinking about what the future of work looks like”. Read more in The Financial Times here. (Subscriber access)
WE ARE IN THE MONEY! THE REAL WINNERS OF THE CAPITAL RAISING BLITZ
- Elite investment banks and their preferred supply-side clients have been the biggest beneficiaries of Australia’s $20 billion capital raising blitz since April, earning $200 million off the 10 largest deals despite the low risks attached. The analysis by corporate advisory firm Vesparum Capital listed BlackRock, AMP Capital, Challenger, Fidelity, Investors Mutual and First Sentier among the institutional investors that increased their positions in companies raising emergency capital. Read the full article in The AFR here. (Subscriber access)
CRACKDOWN ON CLASS ACTIONS
- Treasurer Josh Frydenberg will bring litigation funders under the Corporations Act to slow Australia’s booming class action industry and provide additional protections for firms and company directors. Under the changes, litigation funders will now be required to hold an Australian Financial Services Licence and be required to comply with Australia’s managed investment scheme rules. Read more in The AFR. (Subscriber access)
HAS SWEDEN’S SOFT APPROACH BACKFIRED?
- Despite the strong public support for it’s no-lockdown approach, the Swedish government is facing pressure to change strategy as the country records the highest death rate in Europe. However, Anders Tegnell, chief epidemiologist at the Swedish Public Health Agency, said that while the death toll was high, Sweden’s longer-term approach meant that it would not suffer a second wave of the kind expected elsewhere after lockdown eases. Read more on Sweden’s restrictions in The Australian. (Subscriber access)
Cannings’ CEO Renée Bertuch will reflect on what we have seen from Australian corporate and political leaders through the crisis and discuss lessons to be learned and applied as we move into recovery mode, in a WPP webcast next Monday 25 May. She will be joined by Lynas CEO, Amanda Lacaze, in what is sure to be a lively Q&A session. The event is free to join – register now.
Our daily briefing is not meant to be a summary of media coverage but rather, insights that may be helpful in understanding how organisations are communicating with stakeholders in a time of crisis – and what comes next. Sign up via email.