Shareholder's Declining Influence

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Monday, August 10, 2020 / 05:00 AM / By Proshare Research / Header Image Credit: EcoGraphics

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Shareholder's influence over Board action used to be strong during the years of late Mr. Akintunde Asalu was President of Nigeria's premier shareholder's association. Since the Asalu days, a few other associations have emerged, but the collective impact of these associations have been tame.


The less powerful corporate shareholders are, the less transparency and internal control shareholders expect to see. The more vocal corporate shareholder lobbyists are in influencing Board decisions the more integrity there is in the running of businesses.


The best combination of shareholder and Board power is where both are strong. The strength of both corporate parties ensures that management is effective and efficient and return on equity (ROE) is high and sustained.


Weak shareholders allow Boards to become complacent; this in part explains why poor performing companies tend to delist from the Exchange as soon as they realize that they may be on the path to recovery, hard-pressed Boards do not want their affairs on the pages of newspapers or online media and opt to keep their operations beyond prying public eyes.

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Illustration 12: Shareholders Power Matrix

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Downloadable Versions of 2020 Report (PDF)

1.      Executive Summary: CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions  July 30, 2020

2.     Full Report: CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions  July 30, 2020


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Previous Year's Report and Links

1.          CEO Remuneration 2019 Report: Making Sense of the Numbers for Listed Companies in Nigeria  July 30, 2019

2.         Full Report: CEO Remuneration 2019 Report - Making Sense of the Numbers for Listed Companies in Nigeria   July 30, 2019

3.     All Quoted Companies IR Pages - Proshare MARKETS


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Related News from CEO Remuneration 2020 Report

  1. Power In The Boardroom
  2. Executive Compensation and Shareholders Value Creation
  3. COVID-19 and The New Compensation Normal
  4. The Upside of Rationality
  5. Nigeria's Top Ten Income Earning Executives
  6. The Many Sides of CEO Compensation
  7. Executive Pay and Theoretical Approaches
  8. Between 2019 and 2020: Understanding The New Realities of CEO Remuneration
  9. CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions

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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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