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AFR Feature: “Directors need more skin in the game”

We believe that building enduring business requires alignment across the entire leadership suite - including directors. The design of the directors compensation has a direct impact on their contribution.
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Original Article

A great write up in the AFR on 18 May 2018, on a topic we are passionate about.

It’s clear to us that there is a direct relationship between business success and how invested directors are in the business, both figuratively and literally.

Below are some key quotes from Hamish in relation to or view on  the necessity to align Director’s interests with those of the owners of the business. The full article can be found by clicking the link.

“Significant director share ownership demonstrates a real commitment and belief in the business and enhances the principle that we seek to encourage – to ‘think like an owner’”

“As a director, if you own shares and have a long-term perspective, you will experience greater reward from the company’s long-term success and, conversely, greater pain from the company’s failures. That is a great alignment of interests and a motivator to work tirelessly to build world class businesses”

“They sign onto the concept of growing an exceptional business … and in order to make it worth their time, they want to invest and grow their capital. That’s different to being a director who is looking to collect fees to sustain an income”

About the author

At his core, Hamish loves helping people create futures they never thought possible. As a coach, mentor, and co-founder of TDM Growth Partners, he brings experience from multiple top-tier investment firms as well as from his hiatus as a school guidance counsellor.

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