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What a day for Australia's quiet -- or not so quiet if you're on a company’s board -- pension funds flexing their muscles. #ausbiz Thread:
Firstly, $AMP chairman David Murray resigned after a barrage of criticism from investors following a revolt over the promotion of Boe Pahari and other cultural issues. H/T to @MichaelRoddan for uncovering the allegations against Pahari. https://www.bloomberg.com/news/articles/2020-08-23/amp-chairman-murray-resigns-pahari-steps-down-amid-scandal
It highlighted -- and is the result of -- a huge issue in Australia. While most firms say diversity matters to them, only half have a plan to improve D&I. Women are lacking in senior executive ranks. More detail from @ACPapuc and I. https://www.bloomberg.com/news/articles/2020-08-23/most-australian-firms-say-diversity-matters-only-half-have-a-plan
To #ausbiz board directors: long-term investors like pension funds use D&I metrics to help assess a company’s culture and governance standards. They're pressuring companies to improve. For example: https://www.bloomberg.com/news/articles/2019-05-07/australia-pension-giant-doubles-down-on-push-for-woman-directors
2nd today - $RIO, will cut the bonus payments to its CEO and 2 other executives, and change practices after the Juukan Gorge site destruction. Pension funds don’t seem happy managers weren’t held more accountable. From @David_Stringer and I: https://www.bloomberg.com/news/articles/2020-08-24/rio-ceo-top-leaders-lose-bonuses-after-aboriginal-site-blasts
Why it matters? Well, long-term investors and others caused the about-face on Rio’s earlier stance over the site destruction and forced the review. And now all miners are facing scrutiny from the funds. From @David_Stringer and I last month. // END THREAD https://www.bloomberg.com/news/articles/2020-06-30/a-miner-blew-up-ancient-human-history-now-an-industry-may-pay
