One of the themes of the book is the criticality of being discerning with evidence, and not believing common myths about business, even if they confirm what we’d like to be true. It shows how the evidence paints a quite …
Read MoreThis blog features recent developments related to the themes of the book which occurred after the manuscript was finalised.
Financing Drug Development for Diseases in Developing Nations
While the coronavirus has hit all countries, some of the world’s other serious diseases disproportionately afflict the poorest nations. And here lies the big challenge with finding a cure. The vast majority of ideas for new drugs fail, and even …
Read More“Grow the Pie” in 28 Tweets
On 6 April, I did a Twitter discussion on my book, hosted by Blackwell’s Bookshop. They asked me to start by providing 25-30 Tweets summarising the book, before opening it up to questions. I reproduce them below to provide the …
Read MoreMeasuring Social Impact
A major barrier to putting responsibility into practice is that it’s unclear how to make decisions – in particular, which investments to take and which to turn down. Some pundits argue that companies should do all they can to serve …
Read MoreThe Inconsistency of ESG Ratings: Implications for Investors
Investors are increasingly scrutinizing the ESG performance of companies. This is a positive development – if CEOs know that investors evaluate them on ESG factors, not just short-term earnings, they’ll prioritise these factors over quarterly profit. Indeed, research shows that …
Read MoreMaking Simple, Long-Term Pay a Reality
The Purposeful Company is a UK consortium that proposes evidence-based reforms to embed purpose into the heart of business (I serve on its five-person Steering Group). In October 2019, it released a study on reforming executive pay by replacing complex …
Read MoreCEO Sells Shares Just Before Departure; New Employer Cancels Appointment
In early September 2019, Dutch telecoms firm KPN announced the appointment of Dominique Leroy as new CEO, to start in December. Leroy had been in charge of Belgian telecoms company Proximus for five years but sought a new challenge. However, …
Read MoreSmith & Nephew CEO Quits Over Low Pay; Shares Fall 9%
On 21 October 2019, Namal Nawana, the CEO of UK medical devices firm Smith & Nephew, resigned after 18 months at the helm because he wasn’t being paid enough. The stock price fell by 9% on the announcement, translating to …
Read MoreUS and UK Investor Bodies Support Simpler, Long-Term Pay Schemes
US Council of Institutional Investors Policy on Executive Pay In September 2019, the Council of Institutional Investors, an influential association of US pension funds, foundations, and endowments, overhauled its policy on executive pay. The recommendations are broadly in line with Chapter 5 …
Read MoreUK Government Study on Share Buybacks
In July 2019, the UK government’s department for Business, Energy, and Industrial Strategy published a study on the effect of share buybacks on executive pay and investment which they asked PwC and me to conduct. The full report is here and a …
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