Derek Abdinor

Online Disclosure

Shareholder E-communication is like global warming

Electronic communication to shareholders is a philosophy as much as a practice – where possible collect email and mobile addresses of your shareholders to communicate directly, and cut down the costs associated with being a listed company, eg on the JSE. Because there is an argument for and against, there is doubt. Which means there is no consensus, so policy […]

Schedule 23 – the book(e) make up tons

In discussion the other day we were puzzled as to why the majority of companies on the JSE do not take advantage of Schedule 23 for their regulatory communications to the market and shareholders. For issuing companies to embark on an electronic consent program, the following benefits accrue to company and shareholder: Email addresses of shareholders for direct communication Mobile […]

Management by stakeholders

From an article in the Economist: One reason why Germany’s biggest firms have not cut many jobs is its cherished model of stakeholder capitalism, which took root after the second world war and contributed to its rapid economic growth until the 1980s. Under this model, workers’ representatives fill half the seats on firms’ supervisory boards. A separate management board is […]

US companies opening up remuneration debates

Via Compliance Week: Aircraft manufacturers, Lockheed Martin Corporation (NYSE: LMT) , is conducting an online survey of stockholders on its executive compensation (remuneration) practices. Results will be reviewed by the Management Development and Compensation Committee of Lockhee’s Board of Directors. Prudential (NYSE: PRU) has a section on their website where one can email the independent directors (an email address going […]

The Return of the King Code: out for review

Two codes of corporate governance have ruled informed public companies in the last 15 years in South Africa – the King codes. The third code was launched in Johannesburg last week for public review – you can view it here. Some interesting points: shareholders ought to approve remuneration, and an annual remuneration report needs to be published the audit committee […]

The future of the non-executive board member

The King II Code of Corporate Governance, which  recommends good practices for listed entities in South Africa, has always been in favour of companies having non-executive representation on the boards as well as the committees of listed companies. The reasoning behind these recommendation went as follows: non-executives are relatively impartial they bring different expertise and strategic input, being seperate from […]

Like ships parsing in the night

The maritime Automatic Identification System (AIS) means that every seagoing vessel over 300 tons is required to transmit certain data every few seconds, including: Navigation status, e.g. ‘at anchor’ or ‘underway’ Ground speed, from 0 to 102 knots in steps of 0.1 knots Rate of turn, 0 to 720 degrees per minute Position (GPS latitude and longitude) Heading and Course […]

SEC announces XBRL mandate: all systems go!

It’s here: the mandate for XBRL to become an official filing process, alongside EDGAR, for listed companies in the US.  The SEC announced this in a long-awaited roundtable today, 17 December 2008.  The IDEA system was launched today too. This has followed on the completion of the US GAAP taxonomies.    Immediate impact:  Companies that are listed in the US […]

Governance issues are reflected in proxy guidelines

Risk Metrics Group provides risk management services and information in many countries around the world. They are also a client of my organisation, in a convulted and irrelevant way. They recently released their policies around proxy voting: meaning how they will vote or advise voters in any given situation. Not only does it provide rational guidelines as well as promote […]

Advisors score from the failed Billiton – Rio Tinto deal

The news du jour is that BHP Billiton has declined to pursue its offer for Rio Tinto. Whilst on the one hand the story has flummoxed the investor community, the back channel is that millions of pounds were spent consulting with the professionals who were drafting up the paperwork, dotting the i’s and twisting the fountain pen nibs. I quote […]

British fund managers want annual board re-elections | The Times

Institutional investors of British banks have got more powerful over the years, at the expense of the retail investor. This power has been somewhat diluted by the weighing in of government in the form of bailouts. Further evidence of executive compensation becoming the most scrutinised aspect of financial reporting is also revealed in the article, where majority investors expect to […]

Investor relations from here on in

This was originally published in Bizcommunity, October 20 2008 Corporate transparency is the winner after every market correction – from the 1930’s New Deal laws through to King II and Sarbanes-Oxley. Being involved in your company’s investor relations/corporate affairs section, this will affect how you communicate to the markets and even internally. The rise of activist shareholders and government […]

How traders use social media > Dealstream

Dealstream Securities traded derivatives on the JSE Securities Exchange, specialising in listed single stock futures and CFDs. Alleged problems with its trade in CFDs led to them running out of liquidity with its clearing memberand they were pulled off the markets a few days ago. Assuming that the investment/trading community is probably griping about this topic in the Bull Run […]

Investor relating

I’ve just put down a fascinating article in an old issue of IR Magazine, about the differences in IR language between the US and UK. The premise is that while language and verbage are 99% the same, meaning and emphasis is totally different. For example, “challenging” in plc terms may mean ‘dire’, or ‘SELL'; in the US that could translate […]

The problem of linear governance | openaccountability

I was kindly invited by James Governor (aka Monkchips) of Redmonk, to participate in a pre-conference Wiki, OpenAccountability. James is hyper-passionate about sustainability and web2, and doesn’t mince words or dialectics; I foresee him turning his dab hand to shareholder activism in time. I posted there, thought it would fit here too… Corporate communication tends to follow a linear trail, […]

PIC shows how it voted

The Public Investment Corporation (PIC) of South Africa released a PDF on its website on April 1, displaying how it voted at various AGMs. The PIC is tasked with investing the pension funds of government employees, and therefore tend to hold large chunks of equity in public companies. In fact, they hold over R700 billion assets under management, making them […]

The retail investor | the free library

This is verbatim: IR Firm Pushes Retail investor…-a0112360402 Has the recent runup in the stock market brought the individual investor, battered by years of losses, back into the market in a big way? Experts may be divided, but one sign that it has comes from the Financial Relations Board (FRB), a major public relations and investor relations firm. The […]

Microsoft faces shareholder activism | the membrane is translucent

Ex-Dallas Cowboy football player, turned Reverend of Baptist Church, is miffed with Microsoft’s ‘pro-gay’ stance. Absolutely fascinating thought this is (javascript: void (irony)), my point is thus: By buying a share or twain he has access to the AGM where he can raise his point. PS. Through the article, I found out about Hugh McLeod’s idea of the Porous Membrane. […]

Rule 26 for the LSE AIM companies v PAIA

In February 2007 the London Stock Exchange (LSE) introduced new rules for companies whose shares are traded on the Alternative Investment Market (AIM), notably Rule 26 which requires listing corporate information. AIM Rule 26 requires all AIM-listed companies to maintain a web site displaying the details of a company’s management, corporate governance, and financial information, among other particulars. They had […]