Name: MPW Hong Kong: Differences between international boards
Uploaded: 2014-11-13
Duration: 3 min 14 s
Description: MPW Hong Kong: Differences between international boards

What are the differences, the main differences in emphasis between US boards, Japanese board, Asian boards, European boards. What are, what are the primary differences? Well, I see primary difference between Japanese corporate board and the American corporate board, it's sort of on the opposite side. And probably Europe is in the middle, in terms of independence issues. And because Japanese corporations used to have all internal board member, just like my. Private experience partnership. And now I think it's diversifying as a result of pressure from foreign investors. And what is, what do you see wrong with the US model? Well I think because of the quarterly, quarterly financial request. Mm- hm. And I think it makes all these companies too short term oriented. And in Japan 60 % of the companies which survived more than 200 years is in Japan. So it's a long term thing and of course if, if you go too long term [ LAUGH ] then sometimes it lacks the incentive to make it more dynamic and changeable. All of the boards that I'm on the only non- independent member of the board is the CEO and Chairman. And as Ying said in, in, in the majority although a shrinking majority of cases it's a combined position in the United States. In the boards that I'm on it's a combined position. And the CEO Chairman. The only individual who is the, who is who is not independent. So you have all independent board members. And that has a profound impact on the dynamic questions that are asked. and, and so that's probably the most significant difference that you find in the United States as distinct from other countries. [ INAUDIBLE ] Mm- hm. I find the U. S ., for the reason I said this, that it's like a samurai. You know, when they fight, it's back to back. So one can see 180 degree. The other can't. So with the CEO and Chairman being totally different, you actually a lot of debate, and also sometimes that you do see things differently, and then, through debate, things can really become much more clearer, and the board actually can make better decisions. That's my view. One of the very unique board is with AB Volvo. AB Volvo, on, on, on the AB Volvo board, there are actually five members representing the union. Representing both the white collar and the blue collar. So for them in the board room are the dynamics when, for instance, when we discuss about the dividends. That is a reinvesting, or is a payout, that is always a very interesting dynamic.