KBA Insights

KBA Insights is a monthly publication that presents individual elements of KBA’s thinking, including new insights about industries, business processes and conceptual frameworks.

Author: Denis Kilroy, Marvin Schneider, 12 March 2017 Download Full Article

This month’s KBA Insights examines two ASX-listed companies, Ridley Corporation and Rhipe Limited, that both experienced material falls in market capitalisation in 2016.  Had investors been able see these two companies through the prism of the EP Bow Wave construct, it is possible they may have taken a different view.  They would certainly have been able to make a more considered assessment.

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Author: 24 February 2017 Download Full Article

This month’s KBA Insights addresses two questions that are central to the shift in thinking currently occurring in corporate governance frameworks around the world.  To what extent do the fiduciary responsibility of Directors to their company extend beyond a focus on value or returns provided to existing shareholders? Could it mean building an enduring institution that creates value for customers and wealth for shareholders on an ongoing basis?  The EP Bow Wave construct provides a strong economic argument suggesting that it should.

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Author: Denis Kilroy, Marvin Schneider, 18 August 2016 Download Full Article

KBA has been critical of traditional executive reward plan designs for many years.  We have been particularly critical of the way consultants and advisors have persuaded boards to adopt LTI plan structures that have the unintended effect of both encouraging short-termism and discouraging the building of enduring institutions that create value for customers and wealth for shareholders on an ongoing basis.  In this month’s KBA Insights, we present a potential solution to the problem.

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Author: Denis Kilroy, Marvin Schneider, 20 June 2016 Download Full Article

There is a good deal of pressure on listed company Boards and senior executive teams to meet or exceed short-term financial performance expectations.  Unfortunately, this is often done at the expense of longer-term value creation.  However meeting short-term financial performance expectations need not be inconsistent with creating value over the short, the medium and the longer term. The key to overcoming the tension between these two objectives has two essential aspects.  The first is philosophical.  The second is practical. 

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