We can save the UK stock market if we embrace creative destruction (let the great British buyout boom) and insist all directors have real skin in their game. Make them really need share prices to rise... https://lnkd.in/eRN3BGq6
Hunger rather than greed. One is the mother of invention. The other not so much.
Carl Wells
2w
'Creative destruction' would involve significantly positive real interest rates that would in practice benefit productive, cash-generating companies, and penalise UK property speculation, PE, VC, and all the other non-productive activities on which the UK's economy tenuously rests. It would also destroy 'green new deal'/energy transition plans, and undermine ability to inflate away our WW2-level total debt piles (https://data.bis.org/topics/TOTAL_CREDIT/tables-and-dashboards). M&A usually destroys value and is done for reasons that suit company management's interests, not those of shareholders! https://www.bis.org/publ/qtrpdf/r_qt1809g.htm
Mark Clubb
2w
Well I go with that. Also I am not a supporter of some of the outlandishly and ridiculously large options packages often awarded. They are completely risk free and dilute shareholders who have paid real money for their shares with no certainty of outcome. Incentives are one things but need to be proportional. I own over 10% of www.teamplc.co.uk and 98% I bought.
David Rose
2w
Is that what happens on other stock exchanges? In a world dominated by private capital, the UK and other stock exchanges are becoming anachronistic. Take a look at www.projectfinanceexchange.com/investors, if you want to see the future...
Amit Vedhara
2w
If they are all chasing higher share prices, most executives take the first takeplover offer or decamp to NYC for a higher rating. Not sure that's the outcome we need
Almost impossible if Labour get in
We need to engage shareholders with companies properly and stop this digital only AGM nonsense.
Liad Meidar
2w
Thank you, Merryn. Really enjoyed our discussion!
Making the intangible tangible! - IPM Consultant and Patent Attorney -Tangible IP
2wBloomberg clickbait (B**** paywall.). Not just share price otherwise we will just get total destruction with little creativity. You look at the UK stock market and there is no good reason why many stocks are on such low PE ratios v USA. I doubt a board change will fix that. Investors already have the power to beat up boards and push lame directors out. They just don't engage. Investors in UK are apathetic. One change I would make is a one board rule. Too many directors sit on multiple boards and the companies only get a small portion of their attention...mostly of little value anyway. We have a Directors club with chronic lack of diversity. Why? The apathy problem!