As the world navigates the challenges of hyperinflation, the Post COVID era, the impact of the Russia-Ukraine hostilities, interest rate hikes by Central banks and global warming effects, businesses are adopting models to achieve sustainability.
The conversation on the recent report published by Proshare, “CEO Remuneration 2022: CEOs in a Post Covid Era-What Matters Most,” revealed the need for businesses to be strategic and dynamic in times of global uncertainties.
According to two of the five report writers, Tosin Ige, a Senior Economist, and Ademidun Shogo, an Economist with Proshare, the report identified five(5) key business areas.
Reworking Business Models
Providing his perspective, Mr. Tosin Ige believed a looming global recession brings to the fore the need for businesses to rework their models, pre-empt customer needs, and work back to design products and services that meet those needs.
He pointed out that agile corporations do not fear the risk but rather embrace and deploy them as tools for competitive advantage.
He noted that the corporation’s strategy must be driven by shared objectives managed by the Chief Executive Officer, who must provide a leadership-led and impact-driven approach.
In her analysis, Shogo highlighted the digital transformation drive, one of the significant outcomes of the Post-COVID era. For her, adopting emerging technologies like Big Data, Artificial Intelligence, Machine Learning, and Robotics is shaping the operations of businesses.
She emphasized the need for businesses to rethink their models and increase investments in technologies and a digital transformation strategy, like in the financial services sector.
Citing the McKinsey principles, she stated that building a fit-for-purpose technology stack across product and service providers, where technology is layered to provide customers with an experiential outcome that meets their needs, is critical to business sustainability.
With the ‘Japa’ syndrome, which means migration, at an unprecedented scale, talent management, according to Shogo, is one of the dynamics businesses must manage effectively.
“Retaining talent would become increasingly crucial in sustaining competitiveness. Companies will have to find the best ways of keeping talented staffers”, She noted.
For her, it has also reinforced the value of the remote work experience, which is one of the disruptions in the new world order for corporate management and social interaction.
In this context, flexibility implies agility, and corporations must be agile to remain sustainable and profitable.
With rising inflation across the global economy affecting the operations of businesses, Ademidun Shogo emphasized the need for cost-optimization, which is vital for their stability.
The leadership of corporations will have to outline how to achieve this, as there is a need for an alignment between productivity and profitability
Redefining The Supply Chain
Mr. Tosin Ige highlighted the realities of the dynamics in the global economic system, which has forced companies to re-strategize and assess their ‘Supply Chain’ to redefine them for efficiency.
This, according to him, cuts across key sectors from manufacturing, technology, services, agri-business, logistics and even professional services.
The CEO Remuneration 2022 highlighted the following interesting facts:
- MTN Nigeria in 2021 alone generated more revenue than the top 4 leading IGR States in Nigeria
- The Top salaried CEOs are those of Dangote Cement, Seplat energy, Julius Berger Nigeria, MTN, Lafarge Africa
- The average salary earned by the top ten salaried CEOs dropped by -11.62% to N332.49m in 2021
- Mr. Michel Purchercos of Dangote Cement was the highest-earning CEO in 2021
- Mr. Herbert Wigwe of Access Bank was the highest remunerated CEO for the 2021 FY
- The financial services sector improved in diversity with the appointment of 4 Female Deposit Money Bank CEOs
- Boards of Companies in the Financial Services sector have improved gender inclusion
- Zenith Bank CEO Mr. Ebenezer Onyeagwu was the most efficient in 2021.