maGaZine > suMMEr 2011 > issuE 06
iNsight + iNForMatioN + lEadErship
i want to make waves Why Ellen MacArthur has swapped sailing for business
InSIDE>
BoardrooM divErsity Making room at the top for women pagE 8
how to iNFluENcE pEoplE Valuable tips from a man who knows pagE 26
foreword
words from the front
The beating heart of progress
John Parker, Managing Director, Equiniti You’ll notice a few changes to the design and content of this issue. We like to keep the magazine fresh, finding better ways of doing things wherever possible – and it’s an approach you’ll find reflected in the topics we’ve covered too. In the pages ahead, a number of my colleagues will explain recent innovations in shareholder engagement, dividend payment strategies and technology. In these areas, and many others, we continue to seek out fresh benefits and opportunities for all our clients. In my role as MD, I'm proud that Equiniti has grown into an organisation that encourages its people to be outwards-looking, to get involved in industry issues and to understand the concerns of our clients. Many of my colleagues are recognised experts in their fields, working hard with counterparts across the business world to deliver progress – from industry committees to think tanks to government consultation initiatives. This work is important because it helps to keep our clients, our employees and our suppliers at the heart of progress. I hope you enjoy the issue.
6
of the best
No 1: Business Mavericks Maverick An unorthodox or
independent-minded person. [named after S. A. Maverick, Texas engineer and rancher, d. 1870, who did not brand his cattle] – Oxford English Dictionary
Boardroom diversity is the focus of one of our main features in this issue. So how better to open the magazine than by acknowledging six notable mavericks who have enriched the diversity of the business world?
1
Sir Richard Branson
The first name on many people's lips when the words 'British multi-millionaire entrepreneur' are uttered. Branson's success is partly down to a willingness to think laterally and challenge convention.
2 Perween Warsi
Perween Warsi was so disappointed by the quality of Indian food in shops that she persuaded ASDA to stock a range of dishes she had cooked at home. She now heads up her own highly successful S&A Foods.
Please contact me at: contactus@ equiniti.com
3 AE Pickard John Parker
2 > Equiniti Magazine | summer 2011
An entertainment and property baron in Glasgow, Pickard was as eccentric as he was successful. Famous for pranks and philanthropy, he died in 1964, but would have enlivened many a modern boardroom.
contents inside this issue
maGaZine > suMMEr 2011 > issuE 06
iNsight + iNForMatioN + lEadErship
innoVATion
i want to make waves
Equiniti magazine number 06 Cover photograph by Digby Oldridge
Why Ellen MacArthur has swapped sailing for business
InSIDE>
4
how to iNFluENcE pEoplE Valuable tips from a man who knows pagE 26
regulars
Sir John Harvey-Jones
One of the most charismatic businessmen of all time, John Harvey-Jones turned business into TV entertainment long before Dragon's Den and The Apprentice. The former chairman of ICI made his mark in UK living rooms through his Troubleshooter series.
5 Bill Gates
Want someone utterly single-minded who loudly articulates his opinions without fear or favour, and sometimes with aggression? Bill Gates would certainly add many qualities to a fantasy boardroom, but clubbability probably wouldn't be one of them.
6
BoardrooM divErsity Making room at the top for women pagE 8
4 Thinking Aloud
Mark Bullen and the art of shareholder engagement
7 Postcard from Westminster
Business Minister Edward Davey reviews his progress from pork pies to Parliament
20 My Equiniti
Self-confessed 'technology nut' Mike Jolliffe on the importance of encouraging ideas
25 What’s new at Equiniti?
The barnyard operetta that gets people talking
Karren Brady
Never afraid to challenge the status quo, Karren Brady is famed for making it to the top in that most macho of businesses: football. Successful at Birmingham, her reign at West Ham is proving almost as entertaining as her role in The Apprentice.
Features 8 Women at the top
18 Dignity first
12 Ellen MacArthur
22 Marks & Spencer
16 Six steps to...
26 Influencing skills
Explore our lively debate on improving boardroom diversity Why she's making waves in business circles Getting your dividend payments right
Equiniti Magazine is published on behalf of Equiniti by White Light Media. Editorial Director: Fraser Allen Creative Director: Eric Campbell Writers: Liz Longden, Nicola More, Victoria Masterson & Liz Barclay www.whitelightmedia.co.uk Members of the APA & PPA
Face to face with Richard Portman
An inspired approach to employee share plans
A masterclass from former theatre director David Milne
Equiniti Magazine has been printed on environmentally responsible paper, manufactured using 50% recycled waste and 50% fibre from well managed forests, controlled sources and recycled wood.
www.equiniti.com > 3
Both Equiniti and client companies have to keep trying to be innovative and think of new ways of dangling a carrot in front of the shareholder. If that doesn’t work, they might need to reach for the stick.
4 > Equiniti Magazine | summer 2011
Thinking Aloud mark bullen
portrait by graeme Jepson
How do you encourage shareholders to become more engaged – and more cost-efficient? Mark Bullen, Senior Manager – Registration Services Development at Equiniti, shares his thoughts There’s a lot of inertia out there
I suspect that the attitude that shareholders have towards their dividend reflects the attitude that they have towards their shareholding in general. If a shareholder still chooses to receive their dividend by cheque, it’s likely that they’re not a very closely engaged shareholder – and may be a costly one to manage. There’s a lot of inertia out there. It’s been that way for a long time and our clients continue to keep chipping away, asking: ‘How do I turn an inert shareholder into a shareholder that’s genuinely engaged and making positive decisions?’ Inevitably, you work on campaigns designed to encourage your shareholders to become more engaged and more cost-conscious, there is a law of diminishing returns. You hit the plateau. So companies have to keep trying to be innovative and think of new ways of dangling a carrot in front of the shareholder. In our position as registrar of choice to over 700 clients from the FTSE 350 and small cap, we are looking at innovative ways of sharing best practice and advising on what has worked for other client companies. If that doesn’t work, they might consider reaching for the stick.
A world without cheques
I think we’re drawing closer to the time where companies are going to take more stringent action. Increasingly, they will consider defaulting shareholders to change their behaviour and cheques might be the catalyst for that. If cheques are not going to be available in the future, companies will want to promote other payment methods as early as possible. There are big challenges for our clients to consider. It may be that they don’t default www.equiniti.com > 5
Thinking Aloud >mark bullen
where you try and hit as many people as possible, with one message. I envisage a more targeted approach where we segment groups of shareholders with different messages to encourage shareholder response. It’s also incumbent on us to come up with better choices and incentives for shareholders. We have some fresh ideas. We’re working on a pilot project with a handful of clients which will offer shareholders compelling new choices. We will reveal more soon, so please do watch this space.
Overseas is overlooked
shareholders into other payment methods but they do say, ‘if you want to continue being paid by cheque, we will have to charge you for that; and if you want to receive the annual report by post rather than as an email, we will have to charge you for that too’. Understandably, clients are nervous to do this, but the new approach will become more widely adopted as two or three take a lead and others follow. We must be prepared to encourage shareholders to alter to our preferred behaviours.
Austerity may help
The current economic conditions provide a good opportunity. This is a time when shareholders are likely to be more receptive to action that is designed to boost cost efficiencies – much more so than ten years ago. The current age of austerity could provide a springboard to some very positive developments. The demographic of the shareholder is a key element of this too – they are likely to be older and more resistant to change. However, they may also be more sympathetic to the concept of looking after the pennies, now more than ever.
Machine guns – and innovation
We’ve done a lot of work and continue to improve our analytical capability, to analyse and understand shareholder behaviour. There have been a lot of machine gun campaigns in the past, 6 > Equiniti Magazine | summer 2011
For more information please email mark. bullen@equiniti.com
The majority of shareholders on a share register will be UK-based. Because they’re the vast majority, they get the most attention. However, when you look at the overseas population, more than 97% of them still receive a cheque. It’s quite a small percentage overall but our penetration in terms of weaning them off bad practice is lagging behind. I believe there’s a significant opportunity to do more with the overseas population. And if we don’t, they will become a significant problem. If you’re sending a cheque out by post, the opportunity for that to be intercepted overseas is much greater than it would be within the UK. There are facilities in place where you can make almost immediate payment in the local currency. It is more convenient and often a lot cheaper than the overseas shareholder trying to transact their payment in Sterling.
A clean sheet of paper
If a company was floated today and the Company Secretariat started with a clean sheet of paper, what approach would you take as a company secretary? If you hadn’t inherited shareholders where the legacy position involves many shareholders operating in a very oldfashioned way and you had a chance to engage with them right from the start, what would you do? Shareholders have a responsibility. It’s about making the effort to contribute towards the economic efficiency of the company that they have invested in. Once shareholders are converted and more engaged or operating more efficiently, the benefits are repeated every year. It’s a tough challenge for us all but the benefits are significant. The risk of cheques and benefits of alternative payments are clear.
postcard from... westminster
From pork pies to Post Office reform, Edward Davey’s career has taken colourful turns to date. Victoria Masterson asks the questions as Minister for Employment Relations,
Consumer and Postal Affairs in the Coalition Government, Edward Davey has a wide-ranging brief that spans employment law, competition law, corporate governance, consumer rights and reforming the Post Office. The common theme is growth. “We want to make sure our policies and reforms support the efforts of the private sector to grow our economy,” says Davey, whose career with the Liberal Democrats began when he answered an advert in the Guardian newspaper for an economic researcher in 1989. A key focus is corporate governance reforms – aimed at rebuilding trust, empowering shareholders and protecting long-term value. “The UK has a very good track record in corporate governance,” Davey says. “But its importance is often underestimated in how we take forward our economy. It’s clear to us that well-functioning corporate markets are vital to our country’s productivity, growth and future prosperity.” To address potential shortcomings, the Government has been consulting on issues, including whether shareholders focus too much on the short term, whether directors’ pay should be more transparent and whether boards adequately scrutinise takeover bids with regard to long-term shareholder value. The conclusions of a consultation on narrative reporting are also due before the summer recess.
EDWARD DAVEY Born: 1965, Mansfield Education: Oxford and London Universities Family: Married to Emily, one son Parents: Solicitor and teacher
“In theory, the company is supposed to tell its story: what it’s been doing, what’s working and what’s not; the challenges and opportunities it faces and future strategy,” Davey explains. “Some companies do that very well and the UK has some leading examples in the world. Others do less well. The thrust of our consultation is to improve the quality of the business review so that shareholders get the information they want, in the way they want it.” Davey’s economic credentials are impressive. After Nottingham High School (which also gave us Ken Clarke, Geoff Hoon and Ed Balls) and a gap year that included hitch-hiking round Spain and working in a pork pie factory, he gained a first class honours degree in politics, philosophy and economics at Jesus College, Oxford. Within two years he was the Lib Dems’ senior economics advisor, closely involved in developing policies such as the penny on income tax for education and making the Bank of England independent. “That was our policy in the ‘97 election,” he recalls. “It wasn’t the policy of either the Conservatives or Labour. So I was quite amused when Gordon Brown decided to make the Bank of England independent, having rubbished our policy in opposition.” Before becoming Kingston and Surbiton’s MP, Davey left parliament to work for management consultancy Omega Partners, where he specialised in postal services. The experience – including working on projects in 28 countries – has informed his current drive for mutual ownership of the Post Office. “As postal affairs minister, I’m pleased that we’ve managed to take the Postal Services Bill through the House of Commons,” he says. “Something that neither Michael Heseltine nor Peter Mandleson managed to deliver.” www.equiniti.com > 7
diversity
Women in the boardroom The Government is pressurising business to appoint more women to the board by introducing minimum quotas. As Victoria Masterson discovers, it’s a topic that generates heated responses
he low proportion of women in the boardroom suggests British business is not using all the skills and talents of the workforce effectively. The Coalition Government has pledged to correct this imbalance and has given FTSE 350 companies until this September to announce their ‘aspirational goals’ for change. The ambition is that all FTSE 350 chairmen should set out the percentage of women they aim to have on their boards in 2013 and 2015. Other recommendations include a minimum of 25% female representation on FTSE 100 boards by 2015. Lord Davies of Abersoch, who carried out the review, stopped short of recommending quotas or legislation but said the Government must preserve
8 > Equiniti Magazine | summer 2011
the right to introduce ‘more prescriptive alternatives’ if the voluntary approach didn’t work. “Currently, 18 FTSE 100 companies have no female directors at all and nearly half of all FTSE 250 companies do not have a woman in the boardroom,” he said. “Radical change is needed in the mindset of the business community if we are to implement the scale of change that is needed.” According to the Female FTSE Report from Cranfield School of Management, only 12.5% of FTSE 100 board directors and 7.8% of FTSE 250 board directors were women in 2010. The figures are growing - but too slowly. The Equality and Human Rights Commission suggests that, at the current rate of change, it will take more than 70 years to achieve gender-balanced boardrooms in the UK’s largest 100 companies. Dr Ruth Sealy, Senior Research Fellow and Deputy Director of the International Centre for Women Leaders at Cranfield, has been lead researcher on the annual Female FTSE Report since 2007 and describes the figures as ‘depressing’. “Women in the UK make up about 47% of the workforce and are over-achieving at every single level up to post-graduate,” she says. “They make up half the talent pool. If you want the best people to do the job, why would you only fish in half the talent pool? Up to 80% of all consumer decisions in Europe and the US are made by women – so why not
Women in the UK make up about 47% of the workforce and are over-achieving at every single level up to post-graduate Dr Ruth Sealy, Senior Research Fellow and Deputy Director of the International Centre for Women Leaders at Cranfield
:: boardroom breakdown Percentage of female board directors in 2010
ftse 100 12.5%
ftse 250 7.8%
Source: Cranfield School of Management
have that represented on your board? Academic evidence shows that having women on boards improves various measures of corporate governance, and that diverse teams make better decisions and are more creative and innovative. All of these things are incredibly important in this economic climate.” The Government’s argument is that inclusive and diverse boards are more likely to be effective boards, better able to understand their customers and stakeholders and to benefit from fresh perspectives, new ideas, vigorous challenge and broad experience. A study by research firm Catalyst concluded that companies with more women on their boards were found to outperform their rivals, with a 42% higher return in sales, 66% higher return on invested capital and 53% higher return on equity. A Leeds University Business School study even showed that having at least one female director on the board appears to cut a company’s chances of going bust by 20%. Ruth argues that the maternity and family responsibility issues that affect women further down the workforce are something of a ‘red herring’ at the senior levels, where women either haven’t had children or have nannies or a house husband. “There isn’t a supply problem, it’s a demand problem,” she says, blaming the often ‘opaque’ appointment process for boardroom positions and poor communication between chairmen and
search consultancies. “The chair will often complain that the search consultant has not got a diverse list of candidates. But the search consultant will say that the chair didn’t ask for a diverse list of candidates.” Ruth points to developments in other countries such as Australia, where government threats to introduce quotas forced the business community to take action. Corporate governance rules now require companies to report gender metrics at each level of the organisation and set out their targets for increasing participation. Carmen Watson, Managing Director of Pertemps Recruitment Partnership, is Britain’s most successful black woman in the private sector. Pertemps is a top ten UK recruitment agency with a £280m turnover, 500 staff, 200 branches across Britain and 12,000 customers. Carmen joined the business aged 18 in an admin role and was in senior management by age of 24. She was invited to join the board at 28 and at 30 was expecting her first child. “I was offered a five-year career break with the view of coming back into the boardroom after having my child,” says Carmen. “At the time, that was exceptional and a huge boost to my confidence. It was a major statement not just to me, but to all the female employees at the time. I was good at what I did and a true professional, but
www.equiniti.com > 9
diversity didn’t have the confidence to put up my hand and apply for these roles. But I was actively encouraged to do so by my chief executive at the time (a man). I do feel there should be a very clear career path for women that’s supported by the board and ensures they develop the skills to do the job.” Anyone who’s serious about a boardroom career should ensure they’ve genuinely earned their place and are prepared for hard work – it’s tough at the top. “It’s one thing to have the desire to get into the boardroom and get a badge,” says Carmen. “It’s quite another thing when you’re there doing that role and have that responsibility. There are times when it can be quite a lonely road. “Generally speaking, it’s not the type of role you can pick up and put down when it suits. It’s a lifetime responsibility, whether you have a child or not, and that doesn’t go away. I think if you’re the type that’s going to succeed in the boardroom of a sizeable organisation, you can’t just close the door and hope that things stay as they are until you come back. That’s one of the big challenges.” The 30% Club is a group of businesses, including FTSE chairmen, who have joined forces to campaign for more women on UK corporate boards. It was launched at the end of last year with Sir Win Bischoff, Chairman of Lloyds Banking Group, and Roger Carr, Chairman of Centrica, at the helm. Other key supporters include Theresa May, Home Secretary and Minister for Women & Equality, and Angela Knight, Chief Executive of the British Bankers Association.
No magic numbers
Jane Lowe, a member of the club’s steering committee and Director of Markets at the Investment Management Association, explains the rationale. “There’s no magic about the 30% number,” she says. “But when you look at the research behind this issue, there’s one thread that comes through consistently. If you want to effect some change in culture and commitment, you don’t get there by having just one person. You need a minimum number of people – around three – because listed boards generally have at least 10 to 12 directors, sometimes more. Research indicates that having 30% senior female leaders in an organisation will significantly
10 > Equiniti Magazine | summer 2011
Carmen Watson, Managing Director of Pertemps Recruitment
“Generally speaking, it’s not the type of role you can pick up and put down when it suits. It’s a lifetime responsibility, whether you have a child or not, and that doesn’t go away.” influence both a company’s culture and its decision-making. It’s a reasonably ambitious target and we’ve got some way to go from the current 10-12%.” Lowe believes companies need a stricter approach to the selection process and should be 'thinking outside the box' by looking in sectors such as non-profit for senior women who have a lot of experience, although not necessarily at board level. However she feels quotas would be a step too far. “In Norway, where they were brought in, people considered them generally positive - but it was immensely disruptive for a period of time,” she warns. Peter Swabey, Equiniti’s Company Secretary, believes the focus on gender and ethnicity in the diversity debate is missing the bigger picture. “There’s a perception that greater diversity in the boardroom avoids the risk of ‘group think’ – a group of people from very similar backgrounds who all think a
similar way,” he says. “They may all have the same view on an issue. Not necessarily because they’re all ‘male, pale and stale’. But they may be a group of finance professionals. That was one of the criticisms made of the banks. No matter how diverse they were in terms of gender and ethnicity, they were all finance professionals so they all went down a particular route that they thought was right. “That’s why I’m not a big fan of strict quotas. For me, diversity is a great and good thing, but it’s sensible to not get hung up on particular percentages. The board as a whole has responsibility for what the company does, so needs to be diverse in terms of the overall opinion of the board members, regardless of any other factor.”
Expertise not gender
Sian Westerman is a non-executive director on the board of Anya
Hindmarch, the luxury handbag designer with 54 stores worldwide and celebrity fans including Kate Moss and Angelina Jolie. Westerman trained as a lawyer before joining investment bank Rothschild, where she is Managing Director of Global Financial Advisory. She describes Anya Hindmarch as unusual in having a gender-balanced boardroom. Its two other non-execs and one of the four executive directors are men. Anya herself chairs the board. “What’s been important on Anya’s board is getting different areas of expertise,” Westerman says. “We have entrepreneurs, a private equity investor, financial and legal backgrounds and people who can talk about production and IT, on top of Anya’s crucial marketing and design expertise. So it’s been very much about filling the gaps based on the best people. What I’ve noticed with other companies I’ve dealt with is that when there’s a sole female on the board, she’s seen very much as the woman speaking the woman bringing a female perspective. She is seen as being slightly apart, slightly different. In Anya’s case that doesn’t exist because the board is so balanced – it’s just people bringing their expertise, irrespective of their gender.”
that financial services firms have a poor reputation when it comes to women in the boardroom. However she sees much more ‘diagnosis’ as the industry makes efforts to change. “Companies are reviewing the reasons why women may not choose to take promotion, why they are maybe losing women or why they’re not breaking through the glass ceiling,” she says. The Financial Skills Partnership will be undertaking its own analysis in this area and hopes to collate industry views and data to start a benchmarking process. “Organisations need to look at their pipeline,” Field adds. “They need to know where they are now in terms of junior, middle and senior management and
the proportion of women. What are the practical measures they can put in place to ensure that the pipeline is healthy and feeds right up to the boardroom? “They need to look at the culture of the organisation, what it stands for, its vision and values and how we live by them. How do we reward the right behaviours and what behaviours do we want to see in the first place? It’s about setting out your stall and if you don’t like what you see, how can you change that?” Field shares the view that quotas would be a backward step. “That would be a disaster because you would have women appointed just because they’re women. There would be tokenism and resentment from men. It would be awful.”
“Organisations need to know where they are now in terms of junior, middle and senior management and the proportion of women” Liz Field, Chief Executive of the Financial Skills Partnership
Flexible working
Westerman has two children and believes flexible working is helpful but not a solution in itself to getting more women in the boardroom. Technology has helped her hugely. Her routine generally involves getting home in time to see her children before bedtime and then working again later in the evening using her Blackberry and iPad. But any director joining a board needs to understand the responsibilities involved, and to appreciate that they will need to have amassed the skills and expertise required. “I think if you take on a non-executive role, you have to understand that it’s going to go beyond board meetings and immediate boardroom preparation. It’s hard to quantify the time I devote to it. Because I’m passionate about the business, I’m happy to spend time thinking about it and being involved in calls and meetings. But there are always issues that require extra attention, such as dealing with overseas partners, assessing new stores opening and so on.” Liz Field, Chief Executive of the Financial Skills Partnership, admits
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interview Ellen macarthur
On 7 February 2005 Ellen MacArthur broke the world record for the fastest solo circumnavigation of the globe. Six years on, Ellen still loves the sea but she has something else in her life that she is, if anything, even more enthusiastic about. Her new mission is to tell the world about sustainable production. Consider, for example, carpet tiles. Each year, 600,000 tons of floor covering is dumped each year, and only 1% of that is recycled. In 2007, Dutch flooring company Desso pledged to move completely to ‘cradle to cradle’ production by 2020. Cradle to cradle involves deconstructing the yarn from old tiles and sending it back to manufacturers to remake into new carpet – nothing is lost, only transformed. Cradle to cradle, the circular economy, closed loop production and waste as food – these are a few of Ellen MacArthur’s new favourite things. In September 2010 Ellen launched her new charity the Ellen MacArthur Foundation. Its purpose is to spread the word about these production methods, get education and business involved and help firms showcase examples of innovation in this area, as well as improve and extend the skills of their employees and trainees. It’s a long way from sailing, but Ellen is utterly captivated by her new venture. “I was becalmed for several days at sea and my irreplaceable resources – food and fuel – were dwindling fast,” she explains. “When they ran out there would be no more. I started thinking then about the planet. No one – not at school certainly – had ever really talked to me about it. What happens when we use up 12 > Equiniti Magazine | summer 2011
Making waves in the business world
the earth’s natural resources, its oil, its minerals, its fossil water, and there’s no more? We can’t let that happen.” “We’re all encouraged to recycle, reuse and repair and that’s important but it’s not enough. If we must use valuable resources to make a mobile phone for instance, we have to be able to use them over and over again without using them up. If there’s only so much Indium (a rare and expensive ingredient used in touch-screen technology) on the planet that’s all we’ve got. We can’t just use it up and say ‘oh well, it’s gone now.’ We have to make it into something that can be used over and over again. We should all recycle but this is the next step on. If you also use renewable energy sources in the production process you’ve created a loop where nothing is used up in the production.”
As soon as she set foot back on shore Ellen set about finding out whether anyone else was as concerned as she was. She soon discovered that although many businesses were thinking about closed loop production systems what came up time and time again was the shortage of the engineering and design skills these firms need. That’s where she pitched in. That’s where her passion and energy is currently directed. Ellen set about creating an educational foundation that attracted young people, taught them about closed loop science, hooked them and set them on the road to becoming those engineers and designers with the skills that businesses increasingly need. She also recruited several big firms to help her get the foundation out of dry dock. Her founding partners are BT Cisco, Renault, B&Q and
portrait by DIGBY OLDRIDGE, CAMERA PRESS LONDON
You’ll know the name Dame Ellen MacArthur from her exploits on the open seas. But now she’s looking to make a much bigger splash in the business world. Liz Barclay meets an environmental campaigner on a mission
feature
Ellen’s plans to create an educational foundation began to form whilst she was becalmed at sea www.equiniti.com > 13
interview Ellen macarthur
National Grid. “They really get it! B&Q had known me for years through sailing. The new CEO came to Isle of Wight to meet us. We discussed the foundation and philosophy for the future.” At the Foundation launch in September 2010 Ellen had all the funding she needed. “That was amazing given the financial situation. Education is the backbone for us. We’ve partnered with the Nuffield Foundation, set up a post-graduate certificate with Bradford University and we’re in talks with many business schools. We’ve worked with ‘A’ level students and held big events for schools around the UK.” At each event, specialists from the founding partners talk to the young people. The students have to talk to people in business; they have to quiz the experts about their businesses. It’s often the first time students have talked to business people and business people to students. Then the young people are set a challenge. The size of that challenge takes your breath away! “After Landfill what next? EU legislation means that we have to get rid of landfill. We gave the young people various pieces of information and asked them ‘If you were the government what would you do?’ They’re amazing. They don’t focus on the problem at the end. They go straight to the beginning and look at why there’s a problem in the first place. The materials we use need to be different and we need to make products in a different way so materials don’t end up in landfill. Some of the young people focus on materials; some on the way the product is made. They can see that materials will run out if they go on ending up in landfill. But what if the company that makes something owns it? For example you could buy 3,000 washes 14 > Equiniti Magazine | summer 2011
portrait by Dwayne Senior, eyevine
I have no specific. advice for women. We’re all the same. If you have a passion, get on with it.”
rather than buy a washing machine. The company owns the machine and instead of putting it into landfill it can remake it into a new washing machine - that way materials aren’t wasted. We use case studies to make the young people see what’s possible and encourage them to think outside the box. You see their eyes light up. We inspire them about the opportunities for the future. One member of each team of six in each area will go into one of our partner companies to work on an internship. Young People are worried about getting jobs so this is a great help. We have huge interest from schools and universities.”
Interest from B&Q
Ellen says feedback from business is extraordinary. She gets to talk to CEOs. “Last month the CEO of B&Q (Euan Sutherland) said that one day B&Q might
not sell things any more. When people buy a drill they really want to buy holes so if you sell them the holes and keep the drills, when the drills no longer work you can use the materials in them to remake drills. The National Grid uses copper. They can’t afford to lose copper out of the system. They need security of supply and can see that investment in recovery – pulling out materials and using them again is the way forward. Millions of Euros of copper are burned in incinerators every year because you can’t get it out of whatever it’s been manufactured into. If you just use fewer materials and eke them out that’s not the answer. We have to change the model; change the way we make things. We have to re-think, re-design and build a positive future. It’s going to take a long time; we’re sowing the seeds of thinking differently but we’re pleasantly surprised
:: Stars of sport and business Many footballers describe themselves as businessmen when all they’re really doing is dabbling in ways to invest their inflated salaries. Many have had their fingers burnt by the property slump but former Liverpool star Robbie Fowler has been highly successful building a buy-to-let empire. Others have been more adventurous. Manchester United star Rio Ferdinand claims to have launched ‘the world’s first digital lifestyle magazine’ (http://5mag.co), left, and another former England captain, Bryan Robson, was a director of greetings card firm Birthdays – he earned £1m from the company’s sale in 1996. Meanwhile, Manchester City’s Francis Lee made his fortune from a rather more prosaic product, selling his toilet roll business for £8m in 1984. Rugby has a higher percentage of top business performers. One of the richest is Tony O’Reilly – the former Ireland and British Lions star
by the acceptance of the idea and willingness to discuss it. We’re a charity not a business consultancy. We go out and gather case studies from companies doing this and spread the ideas into education curriculum.” Does Ellen’s name and reputation open doors that would otherwise remain closed? It must have helped to an extent – particularly with B&Q – but her take on it is different. “If you have a good idea people will want to discuss it and you’ll get a meeting,” she insists. Equally, she doesn’t accept the complaint of many women in business that it’s harder for women to get support to get their ideas off the ground. “I never see myself as different,” she says. “I didn’t think ‘I’m a girl, I don’t have experience of sailing, that’s a problem’. As the only girl in the race I didn’t think I was different. I have never thought I’d have difficulty going
into a boardroom. I just had passion and belief and people trust you if you do what you say you’ll do. I have no specific advice for women. We’re all the same. If you have a passion, get on with it.”
Young leaders
It all seems a far cry from sailing and Ellen admits that giving it up was the hardest decision she’s ever had to make. But she still has her other charity, the Ellen MacArthur Trust, through which she sailed with 250 young cancer and leukaemia patients last year. She says their passion for life gives her latest venture even more purpose. “It’s the biggest challenge we’ve ever faced but we can do it. We need to rethink and redesign the future for our shareholders and employees as well as ourselves. Working with Jamie Oliver’s young people (Jamie’s Dream School on
went on to become Chairman of Heinz and then Independent News & Media, marrying a Greek shipping heiress on the way. Other examples are England internationals Fran Cotton and Steve Smith, who formed the Cotton Traders clothing group. Clothing is also a passion for flamboyant English golfer Ian Poulter. He hardly needs the money but has nonetheless developed a colourful line of golfwear (www. ianpoulterdesign.com). One of the world’s most business-savvy sportsmen was the celebrated Belgian cyclist Eddy Merckx. On retirement, he threw his energies into establishing a highly successful bicycle factory. More recently, Argentine tennis star Gabriela Sabatini has built a global perfume business whilst American skateboard star Tony Hawk (www.tonyhawk. com), has proved an energetic entrepreneur and philanthropist.
Channel 4) taught her a lot too. “They all supported each other and had real compassion for each other’s stories. There was a lot of emotion. It was inspiring to see that they cared for each other and saw parts of themselves in each other. Maybe I did too.” Ellen wants to see more young people emerge with the skills businesses need. “When I left school, we didn’t think like that. So we’re working with business now to change the attitude from the top. We need leadership and long-term thinking and I’m lucky to have the opportunity to talk to people about the reality of business. I’ve learned a lot. I love trying to make sense of things; taking on board information and processing it. You have to do that on a boat – to stay alive.” • In September 2010, Dame Ellen published Full Circle about her life so far. www.equiniti.com > 15
Six Steps For Successful Dividend Payments
Did you know that Equiniti released £24bn in shareholder payments in 2010 and handles 54% of FTSE100 company’s shareholdings? The Dividend Team deals with more than 1,500 client dividend payment tasks every year on behalf of several hundred clients paying over 20 million shareholders on a yearly, half yearly or quarterly basis. How does Equiniti’s Dividend Team achieve this? General Manager Andy Robins takes us through the six key steps that are a must for successful dividend payments…
1 Preparation is everything Careful preparation pays dividends – literally and metaphorically. Time spent upfront on planning and putting a schedule in place will save lots of time and potential hassle later in the process. Considerations at this stage include what type of dividend you will be paying, any tax or jurisdiction restrictions and more complex aspects of a dividend relating to multiple share registers, offshore registers or holders and currency dividends. Our dedicated task managers have extensive experience to help you with this process. 16 > Equiniti Magazine | summer 2011
3 Involve the shareholders
2 The look and the feel Presentation is important. For instance, a letter from the Chairman can be designed to attract the right kind of attention and create response; a prompt to increase mandate take-up can stand or fall on the impact it has on the recipient. Careful checks and processes are also in place to ensure that the millions of documents required are proofed, aligned, printed and enveloped in accordance with the highest quality standards. At Equiniti, we have a team of in-house professional designers who employ all the latest industry best practice and can manage this for you.
This is the way we approach this part of the task with our clients. In advance of dividends being issued, shareholders can be given the opportunity to choose to receive the dividend in either cash or shares. Cash can take the form of any currency, including Euros and Dollars. An election form is completed (either online or as a paper copy) and the dividend is calculated based on the shareholder selections. Each election is validated and added to a central processing system. Control checks are embedded across all processing teams involved to ensure that full clearance has been granted before any figures are produced for clients. Once all election choices have been received we inform the client how much they are required to fund in cash or shares. Our Contact Centre is always available to answer a wide range of queries from our clients’ shareholders. These can range from general enquiries regarding the dividend payments to clarifying rates, key processing dates and election choices. Our dividend and client relationship teams are also equipped to provide analysis on key trends or movements on the register and to help clients refine and develop their dividend strategy for the future.
5 Making the payment Last year, the Equiniti dividends team processed BACS payments of £21bn and cheques for £3bn. Once authorisation for payment has been made by the client, it’s our responsibility to make sure that the shareholders receive the correct dividend on time and by their chosen method. Thereafter, we continue to play an important part in: • Checking that the funding is in place – this ensures that cheques or BACS transfers are ready for release. Starting the • Ensuring that once funds are received for the DRIP payments, shares can process again! then be purchased. • Managing the allotment of new shares for SCRIP shareholder elections. Once we have finished making a • Providing an efficient dividend re-issue service to ensure that any payment, we have an internal review shareholders that require replacement payments can receive them and, in many cases, a discussion with promptly. This would include managing any queries relating to changes of our clients to make sure we capture any address, deceased shareholders or cheques being misplaced for example. feedback or observations. If a payment • Once a payment task has been is quarterly, we almost inevitably begin completed, there are ongoing the planning process again immediately reconciliation processes undertaken after payment. on the client’s bank accounts by As we deal with more than 1,500 client our experienced banking and dividend payment tasks annually for reconciliation teams. These involve us large numbers of clients, we are, at any matching the millions of cheque and one time, planning and processing more BACS payments back to our systems than 300 dividends. Our team has been as they are presented and cleared structured to spread the workflow of over several months following the clients and complexity evenly between payment. groups of Dividend Task Managers/ As cheques are due to be phased Planners. Our focus on dedicated out in 2018 we are working hard to client Task Managers has also enabled Behind the scenes inform clients of suitable alternatives. us to grow our specialist expertise, For example, we have introduced continually improve our service and build This stage is the least visible to our new campaigns designed to promote partnership relationships with clients, but critical in terms of a the benefits of payment via the UK our clients. successful delivery. Some of the key BACS system and these have helped activities that we carry out include: to convert tens of thousands of • Ensuring that announcement details shareholders across many clients around dates and rates are accurately to mandated payments. We are timetabled. also supporting clients introducing • Carefully managing sign-off stages with already proven non cheque solutions the client to make sure everyone gets such as DRIP and SCRIP shares. We their choice of dividend and the final are seeing increasing interest from calculations and payments are accurate. clients to introduce new DRIP or • Checking that bank accounts with the SCRIP offerings to their shareholders right credit limits are in place, including for many reasons, including as a BACS indicators to ensure funds flow replacement for cheque payments. correctly to the right destination. • Correctly entering all announcement details around dates and rates onto our systems to ensure we generate the correct output. To find out more about the service from • Applying extensive control checking Equiniti’s Dividends Team, please contact and sign off processes to each stage of Andy Robins on 01903 698539 a dividend prior to running the final calculation and producing the BACS and or Andrew.Robins@Equiniti.com print files (cheques and documentation).
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www.equiniti.com > 17
richard portman dignity plc
company secretary profile
Maintaining Dignity Tell us a bit about your role I have two roles at Dignity, as Corporate Services Director and Company Secretary. Corporate Services consists of board level responsibility for Fleet, our factory in East Yorkshire, Health and Safety, Procurement, HR, Client Service, IT, Property, Communications and Training. So in that role I essentially pick up all the head office functions, except for finance. Then on top of that I also act as Company Secretary.
What did you do before you joined Dignity? Looking back, I guess I kind of drifted into accountancy – I had wanted to be an engineer in the Royal Navy, but prior to university I started to have doubts. I decided to move towards a business career, and qualified as a Chartered Accountant with KPMG in the mid-80s. From there I moved to Forward Trust Group, which was part of Midland Bank, which was then bought by HSBC in 1993. The side of the business I worked for financed assets for customers, everything from Jumbo Jets to cars, and I worked there for eleven and a half years. 18 > Equiniti Magazine | summer 2011
What attracted you to Dignity? It was a combination of push and pull. At HSBC I couldn’t see an obvious way forward in my career; and the pull of Dignity was that it was outside financial services. There was a lot of autonomy in the role, and it was a completely fresh challenge in an industry I didn’t know.
Moving on to today, what are your priorities with Dignity? We provide a service to people at one of the most difficult times of their life, and it’s up to us as a company to provide the finest service we’re capable of. If we do that well, we provide a good return for our shareholders, and by turn we’ll be able to reward our staff. All my work is focused on ensuring that my teams are providing that service. For example, if we’re manufacturing a coffin at our factory, we have to make sure that coffin meets all the quality criteria that a client would expect.
Has the economic slowdown had any impact on your business? Not really. With funeral and cremation services clients don’t tend to vary the amount they spend when they arrange a funeral, regardless of the economic climate. Families want to do the right thing for the person they have lost so the cost of the funeral does not tend to be their primary concern.
You have seen a lot of change, such as the management buyout and then the IPO. What have you learnt from that experience? You read a lot in the press about what happens with a management buyout, but you don’t fully understand all the
portrait by graeme Jepson
Funeral services company Dignity plc places a premium on client service. We are there to help our clients at one of the most difficult times in their lives and doing that correctly is critical to the success of the business, says Company Secretary Richard Portman
sensitivities until you’ve been involved in that process. What you really learn is to think very carefully about every decision – in an MBO it’s critical to provide information that is accurate and correctly presented. When an MBO takes place, you have a small stake in the business, and it changes your attitude. When you go into a float situation you have big institutions investing in you, and it really sharpens your sense of responsibility. What’s pleasing is that Dignity has been
If you are interested in appearing in this feature in the future, please email contactus@equiniti.com
If you could ask the Coalition Government to do one thing, what would it be? I think they need to reduce personal tax on higher earners. The empirical evidence shows that if you tax high earners more, you collect less tax. People need to be encouraged to create wealth and jobs, and you assist that process by not taxing them too heavily.
If you were able to choose a completely different career, what would it be? If I had the choice now I would go to university and study Fine Art – I would love to work for one of the big auction houses. I am particularly interested in late Medieval and early Renaissance devotional painters. I find the way they presented their subjects and the associated symbolism fascinating.
How do you relax outside of work? My son and I are season ticket-holders at Aston Villa, so we follow the highs and lows of football – mostly lows this season, but hopefully highs in the future! I also discovered running in the past six or seven years. I run two or three times a week with a running club, a personal trainer or a friend of mine, and I do some competitive 10ks to try to beat my personal best.
If you could invite three people to dinner, who would they be and why? a tremendous success since it floated. It’s a good company and it has had the success it deserves on the stock market. That’s very rewarding.
What benefits does your relationship with Equiniti deliver? The strength of Equiniti is that it’s one of the biggest players in the registrar market. In the early days they were very much a guiding hand for us – it’s a bit of a voyage of discovery when you list.
They’ve always been very good with the quality of advice and support they’ve provided to us, and the fact that our relationship has existed happily for seven years is testament to that. In the past six months we have extended our relationship, with Equiniti ICS now looking after all our payroll services too. We were more than happy to give them that work because we have a strong relationship with Equiniti.
Three monarchs – Edward IV, Richard III and Henry VII. I’m a member of the Richard III Society, which believes that his reputation has been much maligned, particularly by Shakespeare. The victor always gets to write the history, so I’d love to get them all in a room and get the inside track on what really happened. www.equiniti.com > 19
my equiniti: mike jolLiffe
“I guess you could say I’m a bit of a technology nut – that’s what gives me a buzz in my job. It's up to me to understand the end game. That means rationalising what we currently have and ensuring it’s fit for purpose, scalable and flexible. It’s partly about driving change, but only where that change delivers genuine value to the business and our clients. Moving forward doesn’t necessarily mean moving to something new. A typical day for me starts at 7am. I check the status message to ensure everything is up and running and then check any live projects. About a quarter of my day is spent handling questions. I encourage people from all areas of the business to come to me with questions and ideas – we often get great ideas from the shop floor and I like getting out there to see what people are working on. The most challenging aspect of the job concerns the demanding timescales within which we operate. However, I enjoy the challenge of keeping my skills up and delivering under pressure. I started at Equiniti 30 years ago as a developer. Back then you not only wrote the software but also built the infrastructure. Technology is much more compartmentalised 20 > Equiniti Magazine | summer 2011
now, but we encourage people to collaborate as much as possible. In the past few years at Equiniti, we have enjoyed greater control, and more targeted goals. We are much clearer about what we want to achieve and how to get there. One of the major changes I have witnessed is the greater involvement IT now has with customers (internal and external), our participation in meetings, tender processes and providing solutions. Our integral role in the business was underpinned when we built Sirius. We re-engineered our processes and delivered the industry’s first solutions on the .net framework enterprise technologies – at the time probably the largest development in Europe. We automated most processes, eliminating manual intervention and the associated errors. This also enabled us to go real time linking up with all our web online offerings. Our Web offering expands further with the delivery of our ESP portal and we're continually looking into other applications that
can enhance our service, enable self-service, and thereby increase client satisfaction. We're always keen to respond to feedback and have recently delivered an improved Reporting Services offering in direct response to what our clients have been telling us. New technologies have enabled us to enhance our offerings and deliver to shorter timescales. Because Equiniti is a key player in the industry, I have had a great opportunity to personally work closely with Microsoft, participating in a number of committees and technology programmes, working on case studies, and even presenting at two of their conferences. That has been good for me and good for promoting the use of technology within Equiniti.
portrait by graeme Jepson
Chief Technology Officer Mike Jolliffe loves a technology puzzle – and a fast rollercoaster
“I encourage people from all areas of the business to come to me with questions and ideas. We often get great ideas from the shopfloor and I like getting out there to see what people are working on”
Three quick questions
What’s the best piece of advice you’ve ever been given?
Thirty years ago, my manager told me: ‘If a quill pen will do the job, don’t change it’. That’s always stayed with me. People think you must have the latest thing, but there’s no point unless it delivers tangible benefits. What are your passions outside of work?
I love all things techy. I also enjoy astrophotography – taking photos of the stars. I am often out and about with fellow astronomers looking for dark skies. I enjoy the peace and quiet. Tell us something surprising about yourself.
I’m a theme park addict! I pretend it’s for my kids but actually I love it, especially the really fast roller coasters. I’ve been to Disney World 10 times in 13 years!
www.equiniti.com > 21
benefits Sharing the
he spread of ‘Simply Food stores’, the birth and growth of Marks and Spencer. com, the opening of stores in Dubai and China – there have been many changes at M&S over the last 30 years. However, one constant in the company throughout this period has been Sharesave, the employee share scheme, which celebrates its 30th anniversary at M&S this year. Moreover, not only is the scheme still going strong as it enters its third decade, but employee participation is higher than ever before, last year registering a 61% increase in new savers. It’s a particularly impressive success in the current economic climate, 22 > Equiniti Magazine | summer 2011
and begs the question: why is Sharesave so popular? One factor, undoubtedly, is the importance that M&S attaches to the scheme. “Sharesave is really fundamental to us as a company. We see it as a key way of helping our employees save for a secure future – which in the current economic climate is particularly important – and also as a very effective way of maximising employee engagement,” explains Ann Govier, Manager, Senior Remuneration and Share Schemes, M&S. That goodwill is backed up by tangible financial benefits
portrait by graeme Jepson
As Sharesave hits its third decade at M&S, we look at why employee uptake has never been higher
sharesave
Ann Govier and Alan Daniels have seen M&S’s Sharesave scheme grow from strength to strength
for participants – one three-year share scheme due to mature in January 2012 has a share option price of £2.03, compared with the current M&S share price of around £4. Yet even the best initiatives will struggle if the benefits are not clearly communicated, and while there has been a constant core of employees investing in the scheme over the years, the company has been keen to increase uptake, particularly among those employees who hadn’t participated previously. Last year, the company therefore embarked on a comprehensive overhaul of its Sharesave
“People really liked a magazine-style approach to the brochure. They felt it looked exciting and interesting, something they could easily pick up and flick through”
communications campaign, replacing jargon-heavy documentation with an accessible brochure, which used everyday language and real-life examples to explain how the scheme works. “The feedback we received was that many employees didn’t fully understand how Sharesave worked, and were put off by some of the jargon. As a result, we’ve replaced terms such as ‘option prices’, ‘maturity’ and ‘exercise your options’ with much clearer, more conventional wording,” Ann explains. “Also, while Marks and Spencer is quite a traditional company, we felt we could create a more engaging Sharesave brochure. So we went out to our employee elected Business Involvement Group (BIG), which has a representative in every store, and showed them a selection of concepts. The almost unanimous response was that people really liked a magazine-style approach to the brochure. They felt it looked exciting and interesting, something they could easily pick up and flick through.” In addition to the revamped brochure, the M&S team also produced a cascade pack for each BIG representative to aid them in explaining the scheme to employees in clear and simple terms, and produced a range of media – including posted information, ‘table-talkers’, intranet notices and team briefs – to cover different areas of stores. One key element to the success of the communications campaign was the use of real-life case studies to help employees understand the benefits of Sharesave. “We wanted to bring it to life for those people who had never joined before, and there’s nothing better than finding a colleague who has benefited from Sharesave in the past. When you’ve got colleagues talking about their experience in an enthusiastic way, it communicates the benefits in the best way possible,” explains Alan Daniels, Manager, Employee Share Schemes. “On the one hand we’ve got colleagues who have been in Sharesave since it first started 30 years ago who can give their testimonies; but then we’ve also got those who joined three years ago, and who will double their money. People can relate to that.” The campaign was phenomenally successful – not only did M&S increase the total number of new savers by 61% on the previous year, but it also managed to reach out to a whole new demographic of employees, with first-time www.equiniti.com > 23
sharesave :: the employee perspective
“Our employees are very loyal and want to support their business” Fiona McLaren, based in Edinburgh’s Gyle Centre store, is Project Co-ordinator for the M&S employee representative group, National Business Involvement Group (BIG). She explains why Sharesave has been such a success. understood Sharesave and began saving almost as soon as they started working for M&S. But for others, who, for whatever reason, didn’t understand or hadn’t heard about the scheme when they joined the company, that engagement wasn’t really there. So the recent changes to the communications have had a huge impact. One thing in particular we really wanted to find out was why some people weren’t joining – for example, one group who were much less likely to sign up were young people, and we discovered that came down to them thinking that they might not stay with the business in the long-term. However, when it was explained that they would lose nothing through the scheme and at the very least they would walk away with what they put in, we got a huge increase in the number of young people joining up. Another thing that has definitely had a big impact is
uptake among employees under 30 years of age accounting for 30% of this increase. Out of the 65,000 eligible UK-based employees, 26,000 currently participate in Sharesave, with many joining more than one scheme. M&S is now looking to build on its success, taking the best practice of last year’s campaign, and combining it with a communications drive to celebrate 24 > Equiniti Magazine | summer 2011
portrait by alan mccredie
“Sharesave is hugely popular, and I think one of the main benefits from an employee point of view is that it’s so easy to do – you make the decision once a year and it comes off your salary at source. You don’t feel you’ve lost the money, because you’ve never had it. Our employees are very loyal here at M&S. A lot of our employees have been with the business for many years, and have seen it go through quite a lot of change, both in structure and in fortunes, and they have shown that, when times are difficult, they really want to get behind the business and support it. Sharesave gives them a way of doing that, by allowing them to invest their own money. Saving with Sharesave also helps to reinforce that culture of loyalty – we know that people naturally become more attached to something that they feel they partly own. Over the years we’ve always had a core of people that
Colleagues are already asking Fiona McLaren when the next scheme is out
using real people to highlight the benefits. For example, the redesigned brochure features a story of an employee who’s been saving with the scheme for 12 years, alongside his dream Harley Davidson motorcycle, which he bought with the proceeds of Sharesave. This style and approach has really
the scheme’s 30th anniversary. It’s an exciting time for the team at M&S – and for Equiniti, too. “Equiniti has been very closely involved in everything that we’ve driven this year, listening to our ideas and building on them,” says Alan. “We gave them a major challenge last year to come up with both ways of increasing the number of employees joining the scheme, and
made a difference, because it really illustrates the benefits of the scheme in a real-world way. It’s been so successful that we’ve already had people asking when the next scheme is coming out, anxious in case they miss the opportunity to join – and that’s something that we never would have had before.”
of improving their understanding, and Equiniti has met that challenge in every respect. We’re very much looking forward to working with them in the run-up to this year’s launch, in what is a special year for us.” Ann agrees. “We see our relationship with Equiniti very much as a partnership, and they are hand-in-hand with us all the way on this project.
what's new at equiniti?
Wising up on money Research undertaken by Equiniti has found that 60% of people feel stressed by their financial situation and 70% regard the levels of active assistance they receive from their bank or building society to be poor. The survey also revealed that most people are financially literate but lack confidence in expressing that knowledge or acting upon it. This situation is likely to be exacerbated by changes in FSA legislation due to be introduced in 2012. This is expected to lead to a drop in the number of Independent Financial Advisers in the UK, with those
Three big signings
that remain concentrating on clients with a high-net worth. As a result, Equiniti is keen to offer support to employees of our clients who require advice – whether it’s a graduate looking to pay back a loan or a retiring executive considering pension options. With this in mind, Equiniti has developed a short animation, with a link to a quiz. The accompanying soundtrack is described as a ‘barnyard operetta’ – and may surprise you (see www.thebigpicture. shareview.co.uk). If the project is a success, Equiniti plans to roll out more ideas on the same theme.
The Equiniti Group has expanded its leadership team with three key appointments: Geoff Smith joins as Group Chief Operating Officer, overseeing areas such as IT, Marketing, HR, Premises and Procurement. Geoff joins us from Vaultex and, prior to that, had a long career at Barclays. Paul Matthews joins as Managing Director, Corporate Markets. Having held senior positions at Cazenove and then JPMorgan Cazenove, Paul has worked on many large and complex corporation transactions, including several IPOs.
Xafinity wins at UK Pensions Awards Xafinity scooped the Third-Party Administrator of the Year award at the Professional Pensions UK Pension Awards 2011 held on 5 May at the Grosvenor Hotel in London. The competition in the category was tough; Xafinity came out on top from a shortlist of nine competitors in the industry.
2012: an Olympic pensions challenge Auto-enrolment will have a significant impact on the way that employers approach pension provision. Employers will be obliged to auto-enrol all eligible employees into a suitable workplace pension between
2012 and 2016, depending on the number of their employees. By the end of 2013, all employers with more than 500 employees will have had to meet the new requirements. Failure to comply will result in substantial fines. Any employees that choose to opt out of their pension will have to be re-enrolled every third year. In the interim, any employees who meet the eligibility criteria for the first time will have to be auto enrolled within three months of doing so. Eligibility criteria is complex, being based on age and salary levels. Employees aged between 16 and 75 who do not meet the auto-enrolment criteria will still have the right to join the pension scheme and may be able to demand contributions from the employer. Xafinity can help you plan for the new requirements, mitigating costs and risks to ensure you meet your obligations,
whilst also helping you to ensure that your employees appreciate the investment you are making in their future. For more information, contact Ken Anderson on 0118 918 5457 or ken.anderson@ xafinityconsulting.com
Sharedealing on the move If an app was available for buying and selling shares, would you use it? That is the question Equiniti asked in a survey that attracted more than 1,000 respondents. The answer? A high proportion said ‘yes please!’. As a result, Equiniti is working on a pilot project to create a sharedealing app for all major platforms including i-Phone, Android and Blackberry. Watch this space.
Rob Bloor joins as Group Financial Controller from Arqiva, the Macquarie-backed telecoms business, where he was a divisional Finance Director. Prior to that, he held a senior finance role at Thames Water.
Welcome to Equiniti
We’re delighted to welcome two new business wins to Equiniti. We will now be managing the share registers for:
Perform Group PLC (main market listing) www.performgroup.co.uk
Trap Oil Group PLC (AIM listing) www.trapoil.com
www.equiniti.com > 25
masterclass
It’s not always what you say, it’s the way that you say it. It’s true of life in general and it’s true of the boardroom – everything from body language to speech patterns can affect the impression you make. David Milne of business consultancy Najberg Milne offers ten useful pointers
It’s the way that you say it Breathe
Someone has asked you a difficult question in a tense meeting, and you feel the nerves rising. The most important thing to remember is not to talk straight away. First, take a deep breath, and let it out slowly. To everyone else, it will seem like a momentary pause, but it gives you the time to physically compose yourself and think about your response. If you seem flustered, some people will go in for the kill. Instead, work at your own pace and consider your words before you speak them.
Body language speaks volumes
Don’t look down at your papers, or your fingernails, or out the window. Sit up with a straight back, and look people straight in the eye when you talk. You will appear confident even if you don’t feel it. On a related point, it doesn’t matter where you sit in the room. People who worry over sitting at the head of the table or near the door are just projecting their nerves to something trivial that they can control. If you know your stuff, a seating plan won’t hold you back!
Be prepared
The above advice provides a quick survival guide if you have been caught unawares, and nerves start to creep in. However by far the best approach is not to find yourself in that situation to begin with. If you know you have a difficult meeting coming up, take the time to 26 > Equiniti Magazine | summer 2011
adequately prepare. Consider every question you’re likely to be asked – not just the obvious ones but also the really difficult or unexpected ones. If you go into a meeting with a pile of answers at your fingertips you will feel better, and exude confidence.
Ask questions
This is one of the most valuable things you can do in any business situation. When I was a young theatre director, I watched amazed as an older director took complete control of a meeting. He listened while everyone else talked, then said ‘I don’t know much about that, please explain it to me.’ Suddenly, everyone went quiet. That was almost 40 years ago, and I’ve watched it happen time and time again. It works on so many levels: if someone is pontificating, it stops them in their tracks; if they know the answer, they’re flattered to be asked; and you get to learn something new. It takes true confidence to show that kind of vulnerability, and people will take you more seriously as a result.
Don’t criticise
You should never criticise someone else’s behaviour. Instead, look for subtler ways of getting your point across. Perhaps you or a colleague have made a valid point that’s been overlooked. Instead of being accusatory, simply say ‘Thanks for your input. What’s your view on what Brian just said?’. Or perhaps one
person is dominating the meeting, talking constantly. Simply interrupt them, with a slightly raised voice, or ask them a question that throws them off course. For example, ‘What evidence do you have to back that up?’ or simply a question that moves things in the direction you want to go.
you will be too. Let the nerves in, breathe deeply, talk slowly and deliberately. I’ve been providing presentation training since 1989 and I’ve yet to meet anyone who simply can’t do it.
Do not picture people on the toilet
I find this advice so infuriating. What message does it send you? It tells you that you’re not good enough to talk to these people; that in order to bring them down to ‘your level’ you need to imagine them naked or on the toilet. The advice of looking over the top of people’s heads works on the same premise: that you’re not good enough to look people in the eye. Ultimately, confidence comes from realising that you’re perfectly capable.
Aim for respect, not adoration
The fear of being unpopular is one of the biggest problems we have as a nation. If you want to be taken seriously, at some point you have to make a choice between being popular or being respected. I realised even as a teenager that if you try to make everyone like you, they will hate you for it! Don’t be the fawning, ‘I’m so grateful you’re talking to me’ person. Be relaxed, be yourself and stand up for what you believe in. People will respect you for being genuine and effective.
Take Einstein’s advice
Slow, loud, clear
Presentations make people nervous: fact
So many of the people I meet in my training courses mistakenly associate nervousness with incompetence. Their mind says, ‘My hands are shaking, I’m no good at this.’ That’s simply not the case. Everyone is nervous – accept that
Talk slowly and enunciate – talking quickly and mumbling is a telltale sign of nerves. You should also speak slightly more loudly than you normally would. We have all been told ‘don’t raise your voice to me’, but there’s a difference between talking loudly and shouting. Kids are loud all the time, but without aggression – they’re joyous.
Whether the challenge is giving a presentation, winning a new piece of business or climbing a mountain, the key is just to work at it. There is a myth that you have either ‘got it’ or not, but study after study has disproved this idea. Researchers looking for a ‘genius’ (someone with natural talent who has found success without putting any work in) or a ‘grinder’ (someone who has done everything right but achieved nothing) have never managed to find a single example in either category. Einstein once said “I’m not particularly clever; I just stay with problems for longer.” That is true of everyone from Ronaldo to Obama – if you’re willing to put the work in, you’ll get there in the end. • Najberg Milne specialises in providing expert training and consultancy to help businesses develop stronger relationships. See www.najbergmilne.com for more information www.equiniti.com > 27
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