01 Oct WOOLWORTHS TIES CORPORATE REPUTATION TO EXECUTIVE BONUSES; SHORTFALL FOR WOMEN START-UP FOUNDERS
Welcome to this week’s business and media intelligence update.
WOOLWORTHS TIES CORPORATE REPUTATION TO EXECUTIVE BONUSES
Woolworths is putting its money where its mouth is.
The Fresh Food People announced this week that they would swap out a metric measuring sales per square metre, and replace it with a new measure that effectively ties executive bonuses to corporate reputation.
The company has historically aligned executive remuneration with long term shareholder returns by tying executive bonuses to shareholder returns, return on funds invested, and retail productivity.
Woolworths took a reputational hit this year over its attempt to open a liquor store near a dry Aboriginal community in Darwin, and the grocery giant’s announcement is the latest signal from corporate Australia that it intends to take corporate social responsibility more seriously.
The changes will come into effect from next year, and you can read all about them here.
NET ZERO – CORPORATE AUSTRALIA GOES IT ALONE
The past year has marked an inflection point in the road to decarbonisation, with more than half of Australia’s largest listed companies announcing net zero emissions targets.
The question is: How will they achieve these goals without the right technology?
Carbon-intensive industries like resources, industrials, chemicals and fertilisers will have to pay a steep price to transition away from fossil fuels, which will likely contribute to further global inflation.
In the absence of clear policy guidelines from Canberra, companies argue they are being forced to respond to consumer and investor demands, and you can read about it here.
SHOW ME THE MONEY! SHORTFALL FOR WOMEN START-UP FOUNDERS
Australian start-ups founded by women are securing significantly less funding compared to companies founded by men, according to The Female Founder Funding Report FY2017-2021.
The report, funded by the Federal Government as part of the Boosting Female Founders Initiative, revealed that over the past four years, solely female founded companies secured only four per cent of Australian start-up funding.
Companies with a mixed gender founding team secured 19.7 per cent and those with at least one female founder had secured $5.8 million in funding, representing 23.7 per cent of all Australian start-up funding.
In terms of sectors attracting the most interest from across all genders, fintech, health related companies and biotech attained the most funding in 2021 financial year.
Read the full report here.
M&A BOOM – HERE ARE THREE COMMUNICATIONS ESSENTIALS
Yes, we are in the middle of an M&A boom. Mergers and acquisitions are big news – not only for the companies involved but their employees, for clients and of course, for the media.
While getting the price right is key in any M&A, having a robust communications plan that clearly sets out the strategic rationale to your employees, clients, regulators and other interested parties will help secure the path to success.
Cannings Associate Director Belinda Tasker shares three communications tips to ensure a smooth transaction. Read them here.
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