BOARD INDEPENDENTS VS INSIDERS; THE ROAD ONE MUST FOLLOW

BOARD INDEPENDENTS VS INSIDERS; THE ROAD ONE MUST FOLLOW

BOARD INDEPENDENTS VS INSIDERS 

The number of independent directors sitting on the boards of Australia’s biggest listed companies may be at a record high, but has the time come for business leaders to reconsider the merits of boosting the number of ‘inside’ directors instead?

It’s an idea that’s been suggested in a Harvard Business Review article by Bryce Tingle, who took a deep dive into a plethora of empirical studies of US listed companies and found little connection, if any, between board independence and company performance.

Mr Tingle, who is a Chair in Business Law at the University of Calgary, argues ‘inside’ directors bring unique advantages including their deep understanding of the company, a desire to drive its long-term success, and their ability to resist shareholder requests for something that might not be in the company’s best interests.

He also suggests ‘inside’ directors can reduce the influence of short-term share price fluctuations in the boardroom because they have access to multiple internal sources of information that are a better guide to the company’s performance.

THE ROAD ONE MUST FOLLOW

The number of media outlets turning to paid-subscription models is increasing as they search for additional forms of revenue, and Reuters and CNN are the latest to enter an already crowded market, according to the Wall Street Journal.

Globally, media organisations are feeling the crunch with declining revenues, aggressive budgets, and shrinking newsrooms as global top tier outlets adopt a pay-to-read model, it isn’t surprising that others are following in their footsteps.

For nearly three decades, Reuters has been free for readers. However, they will soon charge $1 per week in Canada this month, followed by the US and Europe in the coming months.

However, the Reuters Institute Digital News Report 2024 found that in some countries around 41 per cent of respondents say they currently pay less than the full price of a subscription, and just 2 per cent of non-payers would pay the equivalent of an average subscription.

Perhaps paid-subscription models aren’t the road to follow in the future…

THE RISE OF DIGITAL NOMADS

The rise of digital nomads has turned remote work into a lifestyle, with countries like Japan and the UAE offering special working visas to attract them.

Once popular among retirees, or “grey nomads”, it is now the younger generation embracing life on the road or abroad, especially as hybrid work becomes increasingly popular.

The Covid-19 pandemic only expedited the trend of digital nomads, with now more than 35 million of them at large, according to a 2023 MBO Partners report. And the trend shows no signs of slowing, as 20 per cent of corporate real estate is sitting empty.

However, critics say the digital nomad lifestyle is a large contributor to gentrification and overtourism, with well publicised animosity from locals in places ranging from Bali to South Africa, urging them to respect and give back to the communities they visit.


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