JPM's Wu on HK's Board Independence and Diversity

The video discusses an analysis of board directors in old economy sectors, highlighting weaknesses in board tenure, multiple board memberships, and gender diversity. Proposed regulatory changes aim to address these issues by limiting board tenure and improving gender diversity. The analysis reveals that sectors like utilities, telecom, and property are lagging, while financial companies show better female representation.

What concern arises when independent directors serve on multiple boards simultaneously?

• They may gain too much influence.

• They might lack the time to effectively contribute.

• They could become biased towards certain sectors.

• They may increase the company's expenses.

What is one of the proposed changes regarding the tenure of independent directors?

• Directors must be replaced after nine years.

• Directors can only serve on one board at a time.

• Directors must retire after five years.

• Directors can serve indefinitely if they perform well.

What is the proposed requirement for companies with single-gender boards?

• They must add a female director within three years.

• They must double the number of directors.

• They must conduct annual diversity training.

• They must report to the regulator every year.

Which sectors are identified as having the worst gender diversity metrics?

• Technology and healthcare

• Utilities, telecom, gaming, and property

• Education and agriculture

• Retail and manufacturing

Which sector tends to have better female representation on boards compared to the index average?

• Telecom

• Financial companies

• Utilities

• Gaming