Changes mooted for tenure of independent board directors in Singapore

Singapore Exchange Regulation (SGX RegCo) has opened for public consultation its proposal for a hard nine-year limit on the tenure of independent board directors (IDs) and the removal of the two-tier voting mechanism for long-serving IDs.

If directors want to serve beyond the tenure limit, they must be re-designated as non-independent even if their appointment was approved via a two-tier vote previously, according to the consultation paper.

Feedback is also sought on mandating the disclosure of the actual amount and breakdown of the remuneration of board directors and the CEO of listed issuers on a named basis in the annual report. This will bring disclosure requirements on director and CEO remuneration in line with global standards.

Both proposals follow a review of companies’ disclosures based on the Code of Corporate Governance 2018 that SGX RegCo had commissioned*, as well as a study on long-serving IDs by the Nanyang Technological University**. The Corporate Governance Advisory Committee had in its statement on these findings suggested a tenure limit for IDs and disclosure of the exact remuneration of each director and the CEO***.

The Monetary Authority of Singapore already imposes a hard nine-year tenure cap on IDs of Singapore-incorporated banks, insurers and managers of real estate investment trusts (REITs). SGX RegCo has suggested that companies be given a one-year transition period to find suitable ID candidates before the hard tenure limit becomes effective.

“Many companies have used the two-tier vote to retain long-serving directors instead of taking a longer-term view to enhance the independent element on boards. Remuneration disclosures have also been disappointing. Shareholders deserve greater board accountability and transparency. With the proposed rules in place, board renewal will take place at a faster pace, and how remuneration compares with company performance will be better understood,” said Tan Boon Gin, CEO, SGX RegCo.

The public consultation will close on 17 November 2022 and can be found at https://www.sgx.com/regulation/public-consultations.

*The independent review of companies’ disclosures by KPMG in Singapore evaluated information in annual reports and company websites based on the 2018 Code of Corporate Governance. The report is found here.

**The Study of the Implementation of the Nine-Year Rule for Long-Serving Independent Directors by Associate Professor Victor Yeo of Nanyang Business School, Nanyang Technological University, is found here.

***The Corporate Governance Advisory Committee’s statement on the review of companies’ CG Code disclosures is here.

Suzhou increasingly recognised for MICE

Suzhou is arguably the MICE capital of China, says the Suzhou Culture and Expo Centre Company (SCECC), which overseas the Suzhou Culture and Arts Centre and the Suzhou International Expo Centre.

According to the SCECC, Suzhou successfully hosted the 53rd World Table Tennis Championships in the first half of this year, while Armani chose Suzhou's Humble Administrator's Garden as the venue for the world premiere of its Pivoine Suzhou perfume. 

Suzhou, 60 km from Shanghai, is 20 minutes from Shanghai via high-speed train and no more than a five-hour trip from large Chinese cities such as Beijing and Guangzhou, as well as cities in Japan and South Korea. The city is home to six professional exhibition venues and four professional conference centres. Suzhou ranks third in China in terms of the number of five-star hotels, and the government has supported the conference and exhibition industry with favourable policies and relevant facilities.

SCECC noted that the city's unique charm has attracted many conference and exhibition organizers. Suzhou features more than 60 well-preserved classical gardens, of which nine have been awarded World Cultural Heritage status and represent the highest level of traditional Chinese gardening and landscaping. Kunqu, the oldest opera in China, was also included on UNESCO's list of Masterpieces of the Oral and Intangible Heritage of Humanity in 2001. 

Upcoming events located in Suzhou include:

• Valve World Expo & Conference Asia 2015, September 2015
• 19th International Conference on Asian Language Processing 2015 (IALP 2015), October 2015
• Fastener Trade Show Suzhou, October 2015
• Stem Cells: From Basic Biology to Disease Therapies International Symposium, October 2015
• The International Bauxite, Alumina & Aluminium Society (IBAAS), China Aluminium International Engineering Corporation Limited (CHALIECO), and Suzhou Research Institute for Non-ferrous Metals Co. Ltd (SINR), China's 4th International Symposium, November 2015
• Optics for Solar Energy (SOLAR) Conference, November 2015
• ChinaBio Partnering Forum, May 2016

Make marketing more effective with a focus on mobile

The Mobile Marketing Association (MMA) has announced the results of the latest Smart Mobile Cross Marketing Effectiveness (SMoX) study*, which was conducted for The Coca-Cola Company in China earlier this year. Results released at the MMA Shanghai Forum confirm that marketers would significantly improve their overall campaign performance, without increasing budget, by simply raising mobile spend.

According to the study, the optimal spend for mobile is between 8 and 15% of total campaign spend. Conducted in combination with Marketing Evolution and InsightExpress, SMoX assesses the economic value of mobile compared to traditional marketing channels and provides brand marketers with the first empirical evidence on the impact of mobile in the marketing mix. The results from this latest study are consistent with results from other recently released studies in the US with AT&T, Coca-Cola, MasterCard and Walmart.

“Because we strive to develop the world’s most innovative and effective marketing, we knew we had to fully understand and leverage mobile’s ability to drive the future growth of our business,” said Tom Daly, Group Director, Global Connections, at The Coca-Cola Company. “Based on the results for China, as well as the study we conducted in the US, we have begun to see a number of truths about mobile that provide a clear path forward, especially around marketing effectiveness. We now have the facts we needed.”

 Key results include:

 Mobile offered nearly double the ROI over TV and was twice as efficient in driving sales compared to the campaign on average
 Mobile at 8% of total budget drives 7% of the profit and mobile at 15% drives 16%
 Mobile video emerged as significantly more effective compared to both TV and digital video (around 3X).
 Mobile display ads drove purchase intent, while mobile social ads drove both purchase intent and engagement In conclusion, SMoX showed that the optimised mobile spend level is 15%, impacting sales even further and producing a double-digit profit increase.

"The market has acknowledged that there is a deep chasm between consumer behaviour and what brands are currently spending on mobile, but now there is real, indisputable proof on the value of mobile to a brand's business goals," said Greg Stuart, CEO of the MMA. “We applaud Coke for their leadership and commitment to figuring out the true ROI of their marketing spend and aligning to consumers’ dramatic move to mobile for content, community and commerce.” 

Source: MMA. Rohit Dadwal.

The results from China reinforce the findings of the other US SMoX studies—that mobile is a key driver of business results across the entire purchasing funnel. Additionally the SMoX study highlights that mobile when executed with best practices impacts performance even further.

“With empirical data, the SMoX study with Coca-Cola in China demonstrates the impact of mobile on a business and its competitive opportunity in this region, similar to what we have observed in the US—but with even better results,” said Rohit Dadwal, Managing Director of the MMA in Asia Pacific.

“It is a great data set for marketers to reassess and optimise their spending with the most impactful allocations in their marketing mix, while leveraging mobile with double digit spend. As an industry, it is time we learned the effectiveness of the channel to aid marketers with their ambitions, and kept pace with consumers to understand the power of mobile.” 

*SMoX applies Marketing Evolution's cross-media attribution modelling approach, leveraging new techniques to provide a granular read on mobile and other media. Marketing Evolution’s methodology has been independently reviewed by the Advertising Research Foundation (ARF). 

Asian companies take feedback from exit interviews seriously

According to the latest Focus Asia white paper from international recruiter Robert Walters, the majority of organisations felt that honest feedback can be exchanged with formal or informal exit interviews, with seven out of ten organisations in Asia conducting them. 

The Acquiring Insights From The Exit Process To Build A Better Workplace report notes that making improvements to the business based on such insights could attract and retain high calibre professionals in the future.

The research surveyed over 1,200 professionals and hiring managers across mainland China, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam. The study examined the formal processes organisations conduct with exiting employees, and offers recommendations on how to glean valuable insights about a company’s culture, operations and management to implement positive changes.

Toby Fowlston, Managing Director of Robert Walters Singapore, said: “While the focus of the recruitment process is often on attracting the best professionals, giving the exit process enough consideration is equally as important. Many employers overlook the opportunities which exit interviews can present. If managed carefully, the exit process can be a way for employees to leave on a positive note or provide employers with the opportunity to make a counter offer. After all, every employee is an ambassador of the organisation even after leaving their jobs.”

Other findings include:

 Seven in 12 employees (58%) did not tell their employers of their unhappiness before starting a job search

 Almost two-thirds (63%) of employers who presented counter offers to resigning professionals were turned down

 Five in 12 professionals (42%) only disclosed their job search after they had signed the new employment contract

 Five out of six (85%) employers can identify employees on the verge of resignation

 Four in ten (44%) of professionals felt that their exit interview process was worthless

Click here to view the complete white paper.