The scores are in and the best performing Boards in the ASX200 in the first half of 2021 have been determined by 88 of Australia’s leading super funds, investment managers and broking houses. In the ASX100, the performance of the Boards responsible for appointing the CEO is obviously linked to performance of the CEO, with the Board league table similar to that of the CEO, but with Brambles, BHP and Magellan Financial Group figuring in MarketMeter’s governance-focused Top 10.
ASX 100 – TOP 10 BOARDS
|3||FPH||FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED|
|6||ALL||ARISTOCRAT LEISURE LIMITED|
|7||BHP||BHP GROUP LIMITED|
|9||MFG||MAGELLAN FINANCIAL GROUP LIMITED|
At the smaller end of the ASX 200, the performance of the CEO and Board diverge with HUB24 the only overlap between the CEO and Board league tables for companies in the ASX101-200.
ASX 101-200 – TOP 10 BOARDS
|1||BVS||BRAVURA SOLUTIONS LIMITED|
|3||JHG||JANUS HENDERSON GROUP PLC|
|7||WHC||WHITEHAVEN COAL LIMITED|
|8||PMV||PREMIER INVESTMENTS LIMITED|
|9||MND||MONADELPHOUS GROUP LIMITED|
Now the companies who are governed by these top Boards don’t necessarily correlate with the companies that delivered the best total shareholder return for the first half of 2021, so just how were these scores and rankings determined? MarketMeter’s interactive market insights platform captures quantitative and qualitative data from domestic and offshore institutional investors via its stock scoring site. Portfolio managers and investment analysts score companies out of 10 across Management, Strategy, Financial, ESG and Shareholder Engagement categories and have the option to provide qualitative feedback to the companies they are rating.
When it comes to scoring a company on the effectiveness of its Board, investors are asked to evaluate the performance of the Board in selecting and monitoring an effective CEO, succession planning and the oversight of strategic direction, social responsibility and corporate ethics. The provision of a solid corporate governance framework and a disclosure environment that promotes transparency for stakeholders are key considerations.
Approximately 75,000 data points were captured on MarketMeter’s platform in the first half of 2021. The quality and depth of the data pool is underpinned by MarketMeter’s partnerships with Australia’s leading super funds whose investment managers provide stock scores as part of their responsible investment reporting processes. Corporate subscribers also contribute to the data sample with their key shareholders providing performance feedback to board and management teams. For the investors doing the scoring, MarketMeter’s interactive analytics platform is a barometer for relative peer group sentiment – a stock screening tool not available elsewhere.
In addition to being used by Australia’s super fund industry, MarketMeter’s data is used by the Australasian Investor Relations Association (AIRA) to determine its annual Investor Relations Best Practice Awards. The league tables for the investor relations industry are published on the AIRA website.
MarketMeter is the interactive market insights platform that measures and benchmarks investor perceptions of Australian and New Zealand listed companies. It is a powerful performance and risk management tool for boards, management and investor relations teams. Corporate subscribers have the power to interrogate this data for meaningful and actionable insights. https://www.marketmeter.com.au/contact-us.html
MarketMeter’s purpose is to provide listed companies with aggregated, anonymised investment market views in order to highlight areas of risk and promote corporate best practice. MarketMeter shares anonymised data with the Australasian Investor Relations Association (AIRA) to determine its annual IR Best Practice Awards, as well as with APRA-regulated super funds for their internal valuation frameworks and The Behavioural Insights Team to explore ESG themes.
Institutional investors and brokers can contribute their stock scores post-reporting season every year: https://stockscores.marketmeter.com.au/signup
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