Tag Archives: Board

News

Diligent and Silicon Valley Directors’ Exchange Find European Boards lack solid understanding of digital assets but are building competency

Ninety-five percent of boards are actively seeking knowledge on the benefits and risks of blockchain-based digital assets like cryptocurrency and non-fungible tokens (NFTs) according to a new report released today by Diligent, the global leader in modern governance providing SaaS solutions across governance, risk, compliance and ESG, and Silicon Valley Director’s Exchange (SVDX), a non-profit organization offering educational and networking programs to boards of directors.

The report Blockchain Digital Assets: Fad, Disruption or Strategic Driver? reveals how nearly 200 global corporate directors are thinking about blockchain-based digital assets as they pertain to roles and responsibilities in the boardroom. Among other notable findings, the report highlights how well directors currently understand developing trends around digital assets and how important incorporating digital assets into strategy is to their companies’ future global competitiveness. The report is powered by Diligent Institute, the research arm and think tank of Diligent, and SVDX.

“Blockchain-based digital assets have risen on the radars of boards over the last few years, as digital currencies are adopted into mainstream B2B payment flows and central banks across the world,” said Dottie Schindlinger, Executive Director of the Diligent Institute.

“These results tell us that despite the turbulence of the industry, 40% of boards believe understanding digital assets like crypto, including its risks and benefits, will be important to their organizations’ competitiveness in the future.”

Among the top findings:

  • Boards lack solid understanding of digital assets but are building competency. Global and European Directors rated their boards’ understanding of digital assets at only a 4 on our 10-point scale, however 56% (global Directors) and 53% (European Directors) are seeking information on digital assets through their own independent research, and 54% (global Directors) and 76% (European Directors) are getting information from third-party experts or consultants.
  • Many boards view understanding digital assets as a potential competitive advantage for their company. Forty percent of directors feel the ability to understand and strategically incorporate digital assets will be important to their companies’ global competitiveness in the future.
  • The majority of directors believe regulations will soon tighten around cryptocurrency. Seventy-four percent of directors believe that the SEC and similar regulatory bodies will tighten regulation of cryptocurrency in the next 1 – 2 years.
  • Directors don’t believe regulatory hesitancy or hostility towards digital assets will damage global competitiveness. Only 27% of directors believe that perceived regulatory reticence toward digital assets in their region will damage their companies’ global competitiveness.

“The survey results point to an awareness on the part of directors that there is yet a lot to learn and understand about blockchain digital asset implications. That is the good news,” said Daniel Siciliano, Chairman of SVDX. “More challenging is the need for a clearer consistent source of helpful information (strategic and practical) for directors on this topic moving forward.”

ESG Investments, ESG/CSR, Finance and Banking, News

ESG Causes Activist Campaigns to Heighten

ESG: The Bellwether of Future Financial Performance Causes Activist Campaigns to be Heightened

  • According to New Shareholder Activism in Europe 2022 Report by Insightia, a Diligent brand
  • With a near 10% YOY increase in the number of UK companies subjected to activist demands since 2021 (with a major increase at large-cap UK firms)
  • Shows a 400% YOY increase in activist campaigns aimed at UK consumer defensive companies
  • UK management teams are more likely to settle with activists than European counterparts.
  • More than half of UK engagements for board seats concluded in settlements (2021)

ESG has totally altered the investor equation.  It is now seen as a bellwether of future financial performance, according to a new Shareholder Activism in Europe 2022 report launched by Insightia, a Diligent brand and provider of shareholder activism, shareholder voting, and corporate governance data. It shows activist investors focusing heavily on ESG as a core measurement of valuation.

The data shows an almost 10% YOY increase in the number of activist campaigns at UK companies year-to-date, compared to the same period in 2021. Of the 25 campaigns, 10 were at large-cap companies – twice as many as in the same period in 2021.  Diligent has also found a 400% YOY increase in activist campaigns aimed at UK consumer defensive companies during that same period (Jan – May 2022). It is clear the rise of ESG performance as a driver of a company’s broader value and good financial standing, is now more under the microscope than ever before, especially for investor prospects.

Interestingly, UK management teams are more likely to settle with their activists than their European counterparts and in 2021, more than half of UK engagements for board seats concluded in settlements. In comparison, in continental Europe, just around a quarter reached amicable resolutions, although this was an improvement over previous years. With the pandemic accelerating awareness of human capital management and supply chain issues, the report found climate change and a diverse array of social issues are now front of mind.  As European deal making ramped up in 2021, so has activist opposition to deals deemed detrimental to minority investors.

L & D, News, South West

Armadillo Board Members Qualified with the Institute of Directors

CRM specialist Armadillo CFO, Andy Brown, and chairman, Chris Thurling, have both qualified with the Institute of Directors as Chartered Directors. With fewer than 2,000 Chartered Directors worldwide, the qualification demonstrates the business’s commitment to investing in employee development at every level, as well as the business’s dedication to corporate and social governance.

The Institute of Directors (IoD) is a British professional organisation for company directors, senior business leaders and entrepreneurs. It is the UK’s longest running organisation for professional leaders, having been founded in 1903 and incorporated by Royal Charter in 1906.

The Chartered Director qualification process involves the study of four modules: governance, strategy, leadership and finance, followed by an exam for each module and then a further three-hour written exam and an interview with a current chartered director.

Chris Thurling comments: “We understand that strengthening our skills as chartered directors should mean we are able to better serve Armadillo, supporting sustainable, long-term growth. A company director is a profession (as much as an accountant for example) therefore why shouldn’t we be qualified for the role?”

Andy Brown adds: “I’m really pleased that Chris and I have been able to complete this training and qualification together. As well as learning more about strong leadership, governance and strategy, we’ve had the advantage of the shared experience of completing this together and bringing ideas back to enhance Armadillo’s Board effectiveness.”

Chris and Andy will also be joining the South West chartered directors network. With members representing agriculture, aerospace, tourism and manufacturing, IoD South West reflects the vibrant and innovative sectors in the region.