This document is a quarterly publication that provides insights for boards and audit committees. It discusses how boards can help organizations embrace data analytics to derive value from big data. It also explores how strengthening internal controls can help tackle corruption risks. Additionally, it highlights an interview discussing the role of nomination committees in selecting directors and evaluating board performance, with a focus on both monetary and non-monetary criteria.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Serene Zawaydeh - Big Data -Investment -WaveletsSerene Zawaydeh
Big data solutions are being implemented in the investment industry among other industries, allowing processing of a large volume of variables including real time changes.
In addition to highlighting current applications of big data in the investment industry, this paper identifies applications of Wavelets in finance and Big Data. Wavelets are used for the analysis of non stationary signals. Academic studies proved the benefits of using Wavelets for forecasting financial time series, data mining among other applications.
The new ‘A and B’ of the Finance Function: Analytics and Big Data - -Evolutio...Balaji Venkat Chellam Iyer
Published in 2013, this White Paper discusses how the finance function would evolve with the combined forces of Big Data and Analytics and the levers that could help catalyze the change and has drawn upon the Global Trend Study conducted by Tata Consultancy Services (TCS) on how companies were investing in Big Data and deriving returns from it.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Serene Zawaydeh - Big Data -Investment -WaveletsSerene Zawaydeh
Big data solutions are being implemented in the investment industry among other industries, allowing processing of a large volume of variables including real time changes.
In addition to highlighting current applications of big data in the investment industry, this paper identifies applications of Wavelets in finance and Big Data. Wavelets are used for the analysis of non stationary signals. Academic studies proved the benefits of using Wavelets for forecasting financial time series, data mining among other applications.
The new ‘A and B’ of the Finance Function: Analytics and Big Data - -Evolutio...Balaji Venkat Chellam Iyer
Published in 2013, this White Paper discusses how the finance function would evolve with the combined forces of Big Data and Analytics and the levers that could help catalyze the change and has drawn upon the Global Trend Study conducted by Tata Consultancy Services (TCS) on how companies were investing in Big Data and deriving returns from it.
Looks at the different AI approaches and provides some practical categorisation and case studies. Then talks about the data fabric you need to put in place to improve model accuracy and deployment. Covers: supervised, unsupervised, machine learning, deep learning, RPA, etc. Finishes with how to create successful AI projects.
Businesses face a multitude of challenges in today’s environment. The overall speed of business is constantly increasing. Decisions are made within minutes and channels are diversifying rapidly. Perhaps most importantly, face-to-face interaction has started to become a luxury, rather than a necessity or consequence of everyday behavior.
The Fundamentals of Business Intelligence is a comprehensive overview of data and data analysis. The guide explains the types of data available to businesses and how these data types work with one another to provide insights to large companies. Look beyond the hype of big marketing to understand the role of all types of data and understand what big data is in the right context.
This white paper will discuss prioritizing actuarial innovation, insurance business oriented architecture, evaluating your actuarial environment, enterprise actuarial data architecture, potential solutions, and critical success factors.
Presented by William Freitag, Managing Partner and CEO, Agile Technologies
Dear students get fully solved assignments
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Monthly Creative Trends : A monthly selection of the best trends & innovative concepts around the world.
Une sélection mensuelle des meilleures tendances et concepts innovants à travers le monde.
For further informations please get in touch with / Pour plus d'informations veuillez contacter :
Selim Ben Hadj Yahia - (Planning Stratégique)
+216 52 577 378
selim@ramdam.in
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Although it is a bitter truth of today, but you have to face it- you cannot trust all term paper writing services. When you cry out "can someone write a custom term paper for me," a lot of companies will come forward and be ready to help you out for some amount of money.
Looks at the different AI approaches and provides some practical categorisation and case studies. Then talks about the data fabric you need to put in place to improve model accuracy and deployment. Covers: supervised, unsupervised, machine learning, deep learning, RPA, etc. Finishes with how to create successful AI projects.
Businesses face a multitude of challenges in today’s environment. The overall speed of business is constantly increasing. Decisions are made within minutes and channels are diversifying rapidly. Perhaps most importantly, face-to-face interaction has started to become a luxury, rather than a necessity or consequence of everyday behavior.
The Fundamentals of Business Intelligence is a comprehensive overview of data and data analysis. The guide explains the types of data available to businesses and how these data types work with one another to provide insights to large companies. Look beyond the hype of big marketing to understand the role of all types of data and understand what big data is in the right context.
This white paper will discuss prioritizing actuarial innovation, insurance business oriented architecture, evaluating your actuarial environment, enterprise actuarial data architecture, potential solutions, and critical success factors.
Presented by William Freitag, Managing Partner and CEO, Agile Technologies
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
Monthly Creative Trends : A monthly selection of the best trends & innovative concepts around the world.
Une sélection mensuelle des meilleures tendances et concepts innovants à travers le monde.
For further informations please get in touch with / Pour plus d'informations veuillez contacter :
Selim Ben Hadj Yahia - (Planning Stratégique)
+216 52 577 378
selim@ramdam.in
http://ramdam.in/
Although it is a bitter truth of today, but you have to face it- you cannot trust all term paper writing services. When you cry out "can someone write a custom term paper for me," a lot of companies will come forward and be ready to help you out for some amount of money.
How to maximize tax savings in ay 2015 16Padmini S
A detailed look at how Indian Tax Payers, can maximize their tax savings for the A.Y 2015-16. All these tax saving measures need to be undertaken on or before 31st March 2015, in order to reduce your tax liability for A.Y 2015-16.
For more check : -http://www.incometaxslabs.co.in/
Digital poster concept it has a large network of plasmas and LCDs across premium public spaces like Railway Stations and Airports and Retail locations in over 22 cities nationwide. With our live advertising screens placed in 22 cities across India at restaurants, cafés, railway stations, airports, retail stores and malls, We gets the message across in a way that static posters and billboards never could.
[MU630] 004. Business Intelligence & Decision SupportAriantoMuditomo
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.
Inside this Issue
1. Crafting a Digital Strategy: A Primer for Indian Pharma by Manish Bajaj
Steps and mantras for digital transformation of the pharma organization
2. Effective Management begins with Role Clarity by K. Hariram
Role clarity and the importance of coaching for successful frontline management
3. Digital Transformation in Pharma Begins with a Mindset Change by Sandeep Narula
The biggest challenge is not technology adoption but mindset change
4. Who Moved my Visual Aid? by Vivek Hattangadi
A story of how digital technology made the Visual Aid obsolete – inspired by Dr. Spencer Johnson. Download here.
5. AIOCD Market Highlights by Ameesh Masurekar
Market highlights for the month of January 2018
This whitepaper from IBM shows how your organisation can implement a Big Data Analytics solution effectively and leverage insights that can transform your business.
We conducted a groundbreaking survey of the UK’s data and business professionals to get a snapshot of the state of the world of data, uncover some of the issues facing the industry and get a sense of the changes on the horizon. The results were enlightening, and in some cases, very surprising.
Find out:
Why nearly a third of IT Directors feel their organisation uses data poorly
What the hybrid data manager of the future will look like
Why understanding customer behaviour remains the holy grail for so many
We conducted a ground-breaking survey of the UK’s data and business professionals to get a snapshot of the state of the world of data, uncover some of the issues facing the industry and get a sense of the changes on the horizon. The results were enlightening, and in some cases, very surprising.
We conducted a survey of the UK's data and business professionals to get a snapshot of the state of the world of data, uncover some of the issues facing the industry and get a sense of the changes on the horizon. The results were enlightening, and in some cases, very surprising.
This whitepaper aims to assist Chief Data Officers in promoting a data-driven culture at their
organization, helping them lead the enterprise on a digital transformation journey backed by
analytical insights.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
1. BoardMatters Quarterly
Insights for boards and audit committees
Volume 3 | December 2014
BoardMatters Forum
India
In this issue
Decision Analytics and the board’s
role in driving it
Big data is today seen as one of the biggest game-changers for business.
But many organizations are still to view data as an asset and are therefore
unable to source and manage it effectively. This article explores how boards
can help the organization to seamlessly embrace data analytics and help
derive optimum value.
02
04
How to boost internal controls
to tackle corruption
For any business, corruption can potentially lead to
day, businesses in the country are confronted with
numerous corruption-related risks. This feature discusses
how organizations can create and deploy a dedicated anti-
corruption program by strengthening internal controls.
BoardMatters Forum highlights
This edition of the BoardMatters Quarterly comes alongwith our
Viewpoints publication. Viewpoints brings you the highlights of
06
In conversation with Amal Ganguli
independent directors, who serves on the boards of
transparency and governance, how the committee can
play a meaningful role in the selection of both directors
and key managerial personnel and the metrics that should
be considered when evaluating the effectiveness of
board members.
09
International Update
This feature analyses evolving trends around independent
board leadership structures and examine the
responsibilities most commonly assigned to these roles.
10
Tax policies are in the midst of change as governments
spur governments to change their laws and treaties in
this emerging cross-border issue.
2. 2 | BoardMatters Quarterly December 2014
In the past few years, analytics has made a strong appearance and
is touted to be the biggest game-changer across industries and
functions.
While there is no doubt that harnessing analytics can offer step-
function improvements in sales performance, revenue generation
and quality management, it is equally critical that the organization
understands the complexities and issues that come along with it.
Big data is a broad term to describe data which is substantial,
complex and unwieldy to manage. It is a collection of very large
data-sets which cannot be processed or analysed by traditional
methods. This collection of data has been aided by the exponential
reduction in storage costs, the emergence of interconnected
digital devices, the internet of things and cheap and reliable
communication networks.
The 3 V’s of Big Data
i. Velocity : The frequency and speed in which data is
processed and captured
ii. Volume: It is estimated that more than 2 zettabytes
only expected to increase.
iii. Variety : The texture of this data is also changing
with more sources being made available – both structured
and unstructured
potential of data.
Decision Analytics and
the board’s role in driving it
the company to be able to segregate the most useful strands of
data and utilise them to their maximum potential.
great source of potential income, a plug for revenue leakage and a
information.
driver for revenue. However, there are considerable opportunities in
using analytics for risk, compliance, control and audit.
identities have been created in the system and business continues
which can be effectively and scrupulously investigated with the
power of analytics.
through millions of records, identifying instances that help bolster
The applications for analytics across functions are manifold.
Sales Marketing Risk Finance Internal Audit Human Resources
• Which is the best
channel to reach
out to a customer?
• How can
marketing
campaigns be
generated and
managed?
• How can
fraudulent
transactions be
detected early
on?
• How can periodic
closings be made
•
on entire information
periodically, quickly and
accurately?
• What is
the overall
sentiment of the
employees?
• Which products/
services to cross-
sell to which
customer?
• What is the
optimal media-
mix?
• What are the
credit terms that
should be offered
to customers?
• Have lower tax
credits than
eligible been
claimed?
•
generated to identify
control gaps?
•
forecasted?
How analytics can help different business functions
3. 3BoardMatters Quarterly December 2014 |
01
Questions to consider:
• What strategies and tactics can be supported by data?
• What are the key drivers for business and is the information
available correctly, on time?
• How is information captured, stored, collated and
disseminated? Is there a single version of truth across the
organization?
• What stage of the analytics life-cycle is the company in? What
is the road-map to achieve a higher maturity level?
• Which is the team or the key members who will be the
custodians of the data?
• Is the right infrastructure, personnel, organizational culture
and drive present to embed analytics?
• What are the investments in analytics initiatives and the
strive to enhance and protect the often-neglected asset of data.
Underutilisation of this valuable asset puts the organization at a
competitive disadvantage.
Board members need not understand or are expected to
understand the intricacies of information management; however,
they can provide guiding philosophies to maximise value from
analytics.
Make data serve you –
volume of data they generate and ask themselves what they can
do with it. This is putting the cart before the horse. The data is an
enabler for strategic decisions – to prove or disprove a hypothesis.
take and then have the team seek the relevant data. This directs
the organization in a more focused search for the right data rather
something.
Ensure information is used responsibly – In this day and age
of privacy invasions and digital hacking, consumer trust in data-
needs to ensure that it maintains a long-term perspective towards
along with customer experience, and does not focus on short-term
information infrastructure are key to ensuring this.
Nurturing a culture of analytics – While analytics can provide a
bulwark for intuitive sense, it can also sometimes provide counter-
intuitive revelations.
Statistics cannot be divorced from business intelligence –
does not imply causality. Have sales to a particular customer
engaging less due to reduced customer budgets? Business
intelligence is the key to unlocking these answers. Board members,
by their breadth and depth of experience, can call out logical
fallacies and gaps and protect organizations from traversing on
ill-conceived paths.
belief that they lack enough information. There is never an ideal
will always give the organization an edge over its competitors.
The analytics voyage can start with a simple assessment of what
information is already available, irrespective of its form and
structure.
These are very exciting times, where the power of information
can radically swing fortunes. The new advances in technology and
methodology are opening whole vistas for expense management
and revenue opportunities.
This is true even for those organizations that have not seriously
invested their resources or even mind-share in building their
analytics capabilities yet.
uniquely positioned to relay this message
4. 4 | BoardMatters Quarterly December 2014
How to boost internal
controls to tackle
corruption
frauds. This trend, combined with a stringent regulatory and
enforcement environment, has brought risk management to the
fore. It is not a choice anymore, but a necessity.
If you look at India Inc. in recent times, you will observe how
the biggest risks, which affect Indian corporate entities this year.
Businesses are required to develop a robust internal control
program to assess and mitigate these risks. We now see Indian
companies deploying targeted anti-corruption compliance
monitoring mechanisms.
In fact, the anti-corruption watchdog, Transparency International,
has rated an Indian conglomerate as the best in emerging markets
for their measures to combat corruption.
The starting point for designing an anti-corruption risk program is
a holistic assessment of risks inherent in the business; the portfolio
intermediaries; and complexity of the operational and regulatory
environment.
How businesses can tackle corruption
Portfolio of
projects
Complexities of
environment
Dealing with
entities
Checklist for
employees
External
Periodic audits
& site audits
Helplines/
Ombudsman
Code of conduct
Anti-corruption
training/
practices
Compliance
monitoring
Conduct risk
assessment
Proper budget
allocation
Anti-corruption
Program
Diligence on
Third Parties
Safeguard
Whistleblowers
Firm-wide
Anti-corruption
Culture
Leverage
Forensic Data
Analysis
Continuous
Renewal
It enlists guidelines for matters such as contributions to political
parties, facilitation payments, and relations with third parties.
and dynamic business environment. Businesses are required to
develop a program which is well-balanced between control policies
and business necessities. This is especially relevant as there are
vast differences in customer segments that companies serve. For
company that relies on the rural market cannot afford to have a
control policy restricting the use of petty cash.
their dealings with third parties and their exposure to corruption
schemes.
Businesses should have a due diligence framework in place for third
parties, that covers an assessment checklist for local employees,
above the services rendered.
5. 5BoardMatters Quarterly December 2014 |
02
facilitation of payments. To alleviate such risks, companies should
set in place a clear corporate policy on facilitation payments that
dictates the extent to which such payments are allowed and ensures
their accurate documentation.
Turning a blind eye to violations can result in criminal and civil
liabilities for the company as well as for individuals. However,
several times, employees shy away from disclosing violations
fearing negative implications of the disclosure.
ombudsman or helplines that facilitate and encourage its people to
report any suspected malpractice. These mechanisms will initiate
the necessary investigation while maintaining anonymity of the
person.
to have a whistle-blower mechanism for their employees and
directors. To be effective, the whistle-blower policy should prompt
timely action from the management and ensure protection of
people who raise their voice against malpractices.
For instance, a leading Indian automobile company has a whistle-
committee to submit an investigation report about the complaint
and ensure timely redressal.
Firm-wide anti-corruption culture through training
minor transactions across an organization, it is very important to
drive anti-corruption as a cultural element.
It is essential for the senior leadership to motivate all its employees
One such example is a large computer networking products and
services organization, which has made its global anti-corruption
training a mandate for all its sales and marketing employees,
channel partners, distributors, as well as sales supporting
consultants.
and responsibilities and is periodically renewed for new as well as
anti-corruption culture.
Leveraging forensic data analytics
monitoring. This can help in identifying high-risk vendors, track
email communications carrying sensitive words, and determine
which locations to audit.
employees and vendors. The company analysed more than two
terabytes of data, comprising more than 25 million documents,
using forensic data analytics tools such as data visualization and
companies will be constantly exposed to more regulatory changes
and new types of risks. What is required from businesses is to
periodically conduct risk assessments to ensure relevance and
effectiveness of their anti-corruption programs.
or fraud. Those that understand risks and implement proper
controls will be best prepared to compete in the global economy.
However, businesses will also be required to measure the cost of
implementing such measures and see that they do not overrun the
tracking of records are required for successful implementation of
these programs.
related risks, but building best practices to deal with such risks is
every strategic decision that it takes, and therefore, it is important
to review and update risk assessment on a regular basis. Those
who fail to do so will expose themselves to countless risks in this
corruption-prone environment.
6. 6 | BoardMatters Quarterly December 2014
outside India where these committees have
been effectively implemented, there is a
need for more detailed guidance.
Q: What according to you should be the
focus areas of this committee while setting
AG:
based on the role, which in turn will
criteria. The committee should set criteria
can contribute in different ways to the
effective functioning of the company. The
selection criteria should be aligned with
the business strategy and should focus on
with the existing management and directors
should also be an important selection
criterion.
“Board performance should
not be gauged only on
monetary criteria”
Q:
that this change will enhance governance
on selection as well as remuneration of
AG:
globally. In response to the growing
regulations requiring stronger review and
oversight of remuneration of directors
Back home, I believe that the new
positive step to protect the interest of the
business and shareholders, and to ensure
is fair and reasonable. It will also ensure
that appropriate evaluation processes
are followed such that remuneration
levels are appropriate to the size and
nature as well as the potential of each
business and that the organization is able
to retain, motivate and retain the talent
play an important role in ensuring an
executive remuneration. The formulation
of a selection and remuneration policy by
the board should create transparency in
the remuneration process and effectively
enhance governance.
Q:
guidance available to Independent directors
on formulating such policy and setting
performance evaluation criteria? Is there
any precedent available in other developed
countries where such changes were
adopted and successfully implemented?
AG:
adopted similar requirements on the
formation of nomination and remuneration
committees comprising independent
such committees to appoint independent
compensation advisors to assist in the
performance evaluation policy that are in
In India, the salaries of banking heads
best practice have formed compensation
policies in line with global requirements. In
my view, while there is a fairly good amount
of precedence already available within and
meaningful role in the selection of both directors and key managerial personnel and the
metrics that should be considered when evaluating the effectiveness of board members.
7. 7BoardMatters Quarterly December 2014 |
Q:
involved in the selection, evaluation,
remuneration decision making process of
criteria and guidance for such decisions?
AG:
to formulate the criteria to determine
independence of a director and recommend
to the board a policy, relating to the
not stop at this stage, but also provides that
the committee will identify persons who
may be appointed in senior management
positions in accordance with the criteria laid
down and recommend their appointment to
the board.
The committee is also expected to carry out
performance evaluation of every director
responsibility on the committee, it is also
important for the committee members
to ensure that their decision making is
independence is not impaired while
recommending a candidate for directorship
performance of the directors.
Q: What should be the component of the
remuneration package of directors and
monetary performance of the company?
AG:
formulating the selection, remuneration
and performance evaluation policies, the
committee will ensure that the level and
composition of remuneration is reasonable
directors of the quality required for the
company to run successfully. It further
states that the relationship of remuneration
to performance should be clear and
should meet appropriate performance
they are aligned to the working of the
company and its goals.
In determining the remuneration policy, the
committee also needs to take into account
various factors such as local legal and
regulatory requirements, the risk appetite
of the company and alignment to strategic
purely to monetary performance may also
increase risk of unethical business practices
right balance between monetary and non-
monetary performance linkage is critical for
a good remuneration policy. In addition, the
policy needs to consider the expectations
from various roles in formulating the
directors can go a long way in achieving
Q: Which non-monetary performance
criteria should be linked to the performance
be the share of monetary and non-
monetary criteria?
AG: Undoubtedly, monetary gains for a
directors should not be solely assessed
by companies on this criterion. It can be
monetary and non-monetary criteria to
only on the monetary performance of
the company. This will help them insulate
the company.
criteria can be factors such as good
mechanisms, maintaining high quality
standards in all dealings, contribution to
creativity and innovation, ethical behaviour,
strict adherence to the code of conduct,
improving service patronage and successful
operational delivery. The aim of selecting
the non-monetary performance criteria can
be two fold – to provide incentives to the
quality, innovation, which contributes to a
the code of conduct, adheres to the legal
compliances and ethics policies and adopts
the best governance practices.
The committee must also consider
benchmark remuneration for the same
role by their peer and competition for
retaining key executives. This becomes
an important criterion when the company
is not performing well compared to
competitors and hence, key resources have
to be incentivised to achieve benchmarked
performance through a competitive or
aggressive remuneration and reward policy.
Q: How should companies making losses or
those not achieving their targeted earning
AG:
and remuneration structure will ensure
that a fair balance is achieved between
rewarding performance and penalizing non-
performance. It is very critical to accurately
03
8. 8 | BoardMatters Quarterly December 2014
The linkage can provide them an incentive
to achieve the required standards which
win-win for all.
Q: How should the committee approach
women candidates, how should committees
management levels within the company?
AG:
in the workplace has several demonstrated
better and more productive communications
implementing measures to improve gender
very few of these companies appear to
have been able to achieve satisfactory
need to understand that bringing board
diversity requires full implementation across
the entire organization and it should be
a sustained effort over a period of time.
Furthermore, effective and continuous
monitoring is also a key to achieving
this diversity.
the corporate culture and the mindset of
to change. To bring about this change, the
committee can include board diversity as
a priority on the strategic agenda, have
programs to develop women as leaders and
promote systematic inclusion of women in
the recruitment and promotion cycles of the
company.
goals in order to ensure consistency
between performance of company and
because a company is making a loss does
not necessarily mean it has not met its
goals for a particular year and that the
example, a new company or a company
be making losses in line with the short-
term business plans to achieve long term
would not be the right remuneration
strategy. Hence, the right balance between
non-monetary performance of the company
is very critical.
Q: What is your view on linking ethics,
compliance and governance scores of
performance and remuneration?
AG:
requires companies to be highly ethical,
legally compliant and have strong
modern day societies expect that
companies operate ethically, be legally
compliant and have good governance
practices. In such circumstances, the
companies have to incorporate the industry
best practices and evolve to the next level.
linking ethics, compliance and governance
Q:
assessment criteria and remuneration
different? How should companies allocate
the weightage among performance
AG:
similarly placed individuals which is not
different roles and discharge different
responsibilities. The yearly targets for both
are varied. In such circumstances, it is
preferable not to equate the performance
and remunerated based on the different
expectations from them and their individual
performance through the year.
operating conditions and business
circumstances, weigh the performance
as some situations will require emphasis
on one of them and some on another. Both
these indicators carry an equal amount of
responsibility, risk and the need to comply
with governance standards.
9. 9BoardMatters Quarterly December 2014 |
Trends in
independent
board leadership
structures
04
Board leadership structures have evolved dramatically over the past
decade or so, with more companies separating the positions of chair
positions vary among companies and include independent chairs,
lead and presiding directors. The responsibilities assigned to these
positions vary among companies as well.
different thoughts on which leadership structure is most effective
– and thoughts on what works best may change based on company
some investors, there is no substitute for an independent board
companies to disclose in the proxy statement whether and why
positions and why this leadership structure is the most appropriate.
governance database, this feature reviews evolving trends
around independent board leadership structures, examines the
key responsibilities most commonly assigned to these roles, and
highlights investor initiatives in this area.
Independent board leadership landscape
The trend is clear — having an independent board leader has
chairs or lead directors with position responsibilities such as setting
the board.
Fewer companies have presiding directors, likely because they are
often viewed as having a more passive role. Larger companies are
more likely to have independent lead directors, while independent
board chairs are more common among smaller companies.
Board leadership debate plays out via shareholder
proposals
board chair, as well as company-investor engagement on this topic,
are drivers of change in board leadership structures. The increase in
board leaders over the same time period.
have declined in recent years. This may represent the general lack
of consensus over a preferred structure.
Independent board chair Lead director Presiding director
7% 3%
35%
47%
47%
11%
10%
86%
89%
9%
2013
2000
2014
30%
Source: EY Center for Board Matters
10. 10 | BoardMatters Quarterly December 2014
Global focus on tax base
additional revenue streams, the focus on transparency is increasing
Boards and audit committees need to be well informed about tax
policy developments and trends worldwide — in the markets they
currently serve and those they may be considering.
is driven largely by concern about the potential for multinational
better coordinate how countries address tax strategies perceived
governments to change their tax laws and treaties in order to
initiative focuses on several areas, including:
•
• Transfer pricing
•
•
• Tax treatment of companies operating in the digital economy
•
members.
both legislation and enforcement activity, without waiting for the
action.
vary, as will the timing of any legislative actions.
For this reason, companies and their boards need to carefully track
countries where the company has current or future operations,
investment or activity.
By doing so, they can understand the trends and anticipate
changes.
What is the expected outcome?
role in reshaping country tax laws. The likely long-term result for
scrutiny, greater transparency requirements, increased compliance
costs and, potentially, more taxes paid.
•
•
•
certain instruments or entities that are treated differently under
•
•
•
•
bilateral tax treaties
11. 11BoardMatters Quarterly December 2014 |
05
expense, allocation of risk and capital, and controlled foreign
corporation rules.
How should boards prepare?
place, and countries are now assessing how to develop their local
implementation. The timing is right for companies to review their
business models and structures against each recommendation to
identify possible pressure points.
light of the likelihood of expanded requirements in the future.
•
managing global tax controversy is also important.
•
developments include:
•
engagement with tax authorities to gain greater certainty
•
stakeholders, including regulators and shareholders
•
these international tax issues
information that emerges from discussions with policymakers
and other relevant stakeholders.
Questions for the board and audit committee to consider
• Has management conducted a strategic review of the
implications of potential cross-border tax
• Has the board evaluated how the company can position itself
for the evolving global tax landscape?
• Is the company ready for heightened scrutiny and tax audit
risk, which can place increased pressure on cash tax and
effective tax rate positions?
• Is the company prepared for the potentially substantial
increase in global reporting requirements and the
commensurate increase in compliance costs?
Source: EY Center for Board Matters