Investors put people and pay before market share

first_img Comments are closed. Related posts:No related photos. Investors put people and pay before market shareOn 28 Nov 2000 in Personnel Today Previous Article Next Article Acompany’s ability to attract employees is now a more important factor thanmarket share, a senior representative of oil giant BP told an internationalconference on HR last week.The linkbetween management of people and share prices is now so clear that matters suchas pay and recruitment systems have become major factors that influenceinvestors, said Roy Williams, senior HR adviser to the company. This meansexecutive stock options are forcing personnel issues into board discussions.“Senior non-executive directors and the CEO will all have looked at the stockprice this morning,” he said. “Ten years ago they took three things intoaccount – book value, earnings and things like image and reputation.“What isnow invested in is market value, which is about things that are not tangible –talent, intellectual capital, image, reputation and quality of leadership.”Even acompany such as BP has about three-quarters of its market value representingnon-tangible assets. In Microsoft and Coca-Cola the proportion is more than 90per cent.He tolddelegates to the ECA International annual conference that senior managers arereading Measures that Matter by Ernst & Young, which lists the most valuedand least valued non-financial data which influence investors. “It is whatanalysts based their judgements on,” said Williams. “They are full of peopleissues.”By PhilipWhiteley last_img

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