A long view of short termism

Article Abstract:

UK corporations are emphasizing their short-term profitability to the detriment of long-term strategic planning, research and development, and training in order to keep their earnings per share high due to pressure from investors. UK corporations increasingly are being run by professional managers without significant shareholdings, and institutional investors increasingly dominate the stock markets. Institutional investors' portfolio managers are under pressure to achieve high performance and thus place great emphasis on quarterly evaluations, increasing the pressure on UK corporate managers to think in terms of short-term profitability. West German and Japanese companies can adopt long-term strategies because they typically have more bank financing and closer relationships with their banks: traditionally, the West German and Japanese banks are prepared to take a long-term view. Low inflation in Germany and Japan is another key to their success, as inflation and fluctuating inflation rates make it hard for UK corporate managers to plan ahead.

Analysis, Strategic planning (Business), Institutional investments

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Widening non-executives' perspectives

Article Abstract:

Ten of the nonfinancial companies listed on the Financial Times-Stock Exchange 100 have boards of directors that are comprised of 12 members, five of whom are non-executive (or outside) directors. These statistics are considered normal for British firms. For financial firms, the percentage of non-executive directors on the board is generally higher. Research by the Bank of England indicates that 60 percent of all British corporations have at least three outside directors. The importance of outside directors to the proper running of the company and the responsibilities usually assigned to outside directors are examined by example. British companies used as examples include: Beecham's, STC, and Guinness. Perhaps the most important function of the non-executive directors is their controlling of the executive directors' salaries. Non-executive directors are said to be less popular in the U.S., because of the number of shareholder class action suits associated with outside directorship.

Services, Corporate directors, Corporate officers

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Large oaks help acorn grow

Article Abstract:

Acorn Hardwoods plc has used money from the Business Expansion Program to expand and to create jobs as it establishes itself in the English oak market. It has purchased a mining mill's assets and goodwill and established a trading agreement with another mill. The company has a stock of high quality oak, as well as stocks ranging from chesnut to walnut. Acorn may establish trading connections with small timber companies in the future to expand its base in Great Britain.

Lumber industry, company profile, Acorn Hardwoods plc.

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