Jason Johnson, Managing Partner of CTPartners Asia Pacific discusses how companies on the ASX200 see Asia as a key source of growth over the next decade and beyond. Presented to the Australian Institute of Company Directors, November 2014.

1. THE ‘ASIANISATION’ OF
AUSTRALIAN BOARDS
Jason Johnson - Managing Partner, CTPartners APAC
13th November 2014

2. [CLIENT LOGO]
THE ASIAN CENTURY
In today’s ‘Asian Century’, the emerging and rapidly growing
economies of Asia offer Australian organisations significant business
opportunities:
• By 2030 Asia will represent 39% of the world’s GDP
• China, Japan and South Korea are three of Australia’s five largest
trading partners
• More than three-quarters of Australia’s exports go to Asia
So it should be no surprise that most of the ASX200 see Asia as a key
source of their growth over the next decade and beyond

3. [CLIENT LOGO]
THE ‘BAMBOO CEILING’
• While pursuing opportunities in the region, far too few companies have
broken through the so-called ‘bamboo ceiling’ by adding individuals
with Asian cultural knowledge and expertise to their corporate boards
• The need for appropriate board representation of key regional business
markets applies to any company investing outside of its home markets.
A board simply cannot properly fulfil its duty to review and develop
strategy without expertise in the relevant region
• Australian companies have been relatively poor at adding leaders of
Asian descent to their boards. Among the ASX 100, only 3% of directors
have Asian cultural origins (down from 4% the prior year). The number
rises to 6% for the top 200 companies

4. [CLIENT LOGO]
CAPITALISINGON CULTURE
• The situation is now changing with a developing trend toward some
Australian companies appointing directors with Asian experience and
heritage to their boards
• The recent AICD sentiment index showed that 21% of boards are
seeking to increase their ethnic diversity
• We forecast that we will see a rapid increase in the percentage of
directors with Asian cultural origins at top Australian companies
• Many of the same factors are at play which led to the fundamental
repositioning of gender diversity of Australian boards. Between 2010
and 2014, the percentage of female directorships on ASX200 boards
doubled from 8.3% to 17.6%

5. [CLIENT LOGO]
THE 25 TRAILBLAZERS
• 25 directors of ASX100 boards are Asian born:
• 10 were born in Singapore
• 10 were born in China (8 in mainland China and 2 in Hong Kong)
• The rest were born in other regions of Asia
• The data excludes those with “Asian experience”, such as:
• Dr Ken Henry of NAB’s board
• Geoff Raby (former ambassador to China) of Fortescue Metals’
board

6. ASX100 ASIAN-BORN DIRECTORS
Company Director Country of birth
[CLIENT LOGO]
Alumina Chen Zeng China
Ansell Annie Lo Hong Kong
Ansell Dr Marissa T Peterson Philippines
Atlas Iron Sook Yee Tai Singapore
ANZ Hsien Yang Lee Singapore
Bluescope Steel Yam Pin Tan Singapore
Brambles Tahira Hassan Pakistan
Fortescue Metals Cao Huiquan China
Goodman Yan (Philip) Hok Fan China
IAG Siang (Raymond) Keat Lim Singapore
Investa Office Fund Ming Long (ED) Malaysia
NAB Anthony Kwan Tao Yuen Hong Kong
News Corp The Hon Elaine Lan Chao Taipei
News Corp Professor Viet D Dinh Saigon
Orica Chee Onn Lim Singapore
PanAust Zezhong Li China
QBE Yun (Irene) Lien Lee China
Santos Hock Goh Singapore
Sims Metal Tamotsu (Tom) Sato Singapore
SP Ausnet Teck (Eric) Hai Gwee Singapore
SP Ausnet Tian Yee Ho Singapore
SP Ausnet Kee Choe Ng Singapore
Treasury Wine Estates Yiu-Cheong (Ed) China
UGL Hon. Doctor Kuo-Fung
(Raymond) Ch’ien
China
Worley Parsons Xiao Bin Wang China

7. SUCCESSFUL FEMALE ASIAN NEDS
Eva Cheng, Amcor (HK) - Appointed to Amcor in June 2014
• Mrs Cheng led Amway's market launch in China in 1991 and held its Executive
[CLIENT LOGO]
Chairman position for 20 years.
• Mrs Cheng is currently a Director of Trinity Limited, Nestle S.A., Haier Electronics
Group Company Limited and The Link Management Limited
Margaret Leung, QBE (HK) – Appointed to QBE in August 2013
• Former CEO of Hang Seng Bank Limited
• Director of China Construction Bank Corporation, Chong Hing Bank, Hong Kong
Exchanges and Clearing Limited, Sun Hung Kai Properties, Li & Fung Ltd and First
Pacific Company Limited
Annie Lo, Ansell (HK) – Appointed to Ansell in January 2013
• Former CFO of Johnson & Johnson's worldwide consumer and personal care group

8. [CLIENT LOGO]
CHALLENGES
Unfortunately, that change won’t be easily delivered:
• There is a notable shortage of public company, board-ready
candidates with extensive senior leadership experience in the Asian
region
• There is a significant difference in governance norms between
Western and Asian companies
• The preponderance of private, family, or state-owned companies in
Asia can mean that some Asian executives will not be a good
cultural fit with Western companies

9. BROADENING THE TALENT POOL
Consider the following pools of talent:
• The limited pool of Asian executives who have experience working
[CLIENT LOGO]
with Western multinationals
• Western executives who have had a significant tenure in Asia, who
can provide regional knowledge, contacts, and networks
• Executives with Asian cultural heritage and experience who are
living and working abroad
And be more thoughtful than just seeking to appoint candidates who
have prior experience as a CEO. Instead, boards must look to the key
attributes and capabilities sought

10. [CLIENT LOGO]
ADVISORY BOARDS
• Consider establishing an advisory board to provide connectivity and
insights into the targeted Asian country or region
• While corporate boards’ responsibilities are focussed on
governance, strategy, and compliance, advisory boards typically
focus on business development
• Advisory board members can share professional networks as well as
their insights regarding ways to navigate political systems, engage
with key stakeholders, and most effectively expand into new
markets
• Advisory board roles do not necessarily demand the same depth of
business experience as public board directorships. The ability to
help build the business in key markets is a core element

11. [CLIENT LOGO]
ABOUT JASON JOHNSON
Jason Johnson is the Managing Partner, Asia Pacific and a member of the Executive Committee of CT Partners – a
NYSE listed firm and one of the world’s sixth largest executive search firms.
Jason joined CTPartners in 2014 after its merger with Johnson - the executive search firm that he founded in 2005 and
which had grown to be the largest independent search firm in the region with 18 partners and 50 staff.
He serves as Managing Partner for the Asia Pacific region in addition to working with the firm’s Board, Financial
Services and Professional Services Practices.
Jason is the Global Chairman of the Association of Executive Search Consultants (AESC) - the peak body for the $11B
global retained executive market.
Jason began his executive search career with NASDAQ-listed Highland Partners (formerly TMP Executive Search),
where he was the youngest of more than 110 partners.
Prior to joining the executive search industry, Jason practiced corporate law in Sydney with Allen Allen & Hemsley and
Andersen Legal. Jason is a highly sought-after commentator on leadership and talent issues and is a regular
contributor to major business publications and media.
Jason received a Bachelor of Economics (Major in Finance) and a Bachelor of Laws (Honours) degree from Macquarie
University.