News

21.04.2011

Third Forum for Directors on Russian Boards

Just one week after President Medvedev’s visit to Hong Kong, a leading investor and businessman was the star attraction at the Third Forum for Directors on Russian Boards. A board member of RUSAL, Barry Cheung compared how Russian and Chinese companies are perceived on international financial markets. The Forum was organized by IBLF, the Independent Directors Association and PwC on April 21 in Moscow.

According to PwC’s 14th Annual Global CEO Survey, 48% of the 1,200 CEOs surveyed said they were “very confident” of growth in the next 12 months. This approaches the 50% level seen in 2008, before the global economic crisis hit. In Russia, even more CEOs (60%) are upbeat about renewed growth in the next 12 months. Yet, the overall outlook for the global economy and Russia’s place in it still leaves plenty of room to question such optimism.

In the global competition for investment, Russia must keep pace with its peers among leading emerging markets. This means effectively dealing with such perceived risks as poor rule of law, corruption and environmental issues. Reflecting the challenge of closing the expectations versus reality gap, last year saw the postponement of several international IPOs by Russian companies.

But, as Russian companies gear up to return to international IPO markets, just how do they keep pace in terms of attracting investment? How can they compensate for the perceived weakness of Russia’s investment climate? And, how do they keep investor interest and their share price high after the IPO?

As they increasingly enter global capital markets, Russian companies need to show they can balance short- and long-term goals, create shared value for shareholders and stakeholders alike, do business transparently, and act responsibly to promote sustainable development and social and environmental well-being. In this way, Russian companies can position themselves as forward-looking leaders in the new global economy.

The forum brought together some of today’s top leaders in Russian business to share their experience of participating on boards, which are truly able to influence strategy and deliver enhanced shareholder value, even under the most challenging circumstances.

Improving Business Standards in Russia