Corporate Officers – Upbeet Communications http://upbeetcommunications.com/ Thu, 17 Nov 2022 10:25:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://upbeetcommunications.com/wp-content/uploads/2021/07/icon-3.png Corporate Officers – Upbeet Communications http://upbeetcommunications.com/ 32 32 Research: Rating Action: Moody’s Confirms KT Corp’s A3 Ratings; outlook remains stable https://upbeetcommunications.com/research-rating-action-moodys-confirms-kt-corps-a3-ratings-outlook-remains-stable/ Thu, 17 Nov 2022 10:11:31 +0000 https://upbeetcommunications.com/research-rating-action-moodys-confirms-kt-corps-a3-ratings-outlook-remains-stable/ Hong Kong, November 17, 2022 — Moody’s Investors Service has affirmed KT Corporation’s A3 senior unsecured ratings. The rating outlook remains stable. “The rating confirmation and stable outlook reflect our view that KT will maintain its strong competitive positions and healthy financial leverage over the next 1-2 years,” said Sean Hwang, assistant vice president and […]]]>

Hong Kong, November 17, 2022 — Moody’s Investors Service has affirmed KT Corporation’s A3 senior unsecured ratings.

The rating outlook remains stable.

“The rating confirmation and stable outlook reflect our view that KT will maintain its strong competitive positions and healthy financial leverage over the next 1-2 years,” said Sean Hwang, assistant vice president and analyst at Moody’s.

“The steady increase in revenue from its core telecom and non-telecom businesses will offset the effects of the company’s growing cost base and partially debt-financed investments in its B2B and financial businesses,” Hwang adds.

RATINGS RATIONALE

KT’s A3 ratings reflect the company’s competitive strength as a fully integrated telecom operator with strong market shares in all major segments in Korea. The company also maintains strong liquidity and good financial flexibility, supported by its substantial liquidity.

These factors offset KT’s modest profitability compared to its similarly rated telecom peers, due to continued intense competition in the Korean telecom market, with a history of high marketing spend.

Moody’s expects the company’s revenue to grow around 3% annually over the next 1-2 years, from KRW 25.7 trillion in the 12 months to September 2022, supported by growing number of subscribers and average revenue per user in its wireless and multimedia businesses, as well as increasing non-telecom revenue.

This revenue growth is expected to offset increases in KT’s general operating expenses, such as salaries, and therefore keep its adjusted annual EBITDA stable at around KRW5.7 trillion-KRW5.8 trillion over the 1 to 2 years. next 2 years. KT’s Adjusted EBITDA in the 12 months ended September 2022 was slightly below KRW 6 trillion, including approximately KRW 0.3 trillion of one-time gains related to asset sales of the real estate subsidiary.

On the other hand, Moody’s expects KT’s reported consolidated debt (including lease debt) to remain broadly stable at KRW 11.6 trillion as of September 30, 2022. Moody’s expects the subsidiary KT’s financial institution, BC Card Co., Ltd., continues to expand its debt lending business, but its impact will likely be offset by KT’s use of excess cash and short-term investments to repay its incoming debt. due.

As a result, Moody’s expects KT’s Adjusted Debt/EBITDA to remain broadly flat at 2.2x, similar to the level for the 12 months ended September 2022. This projected level of leverage, coupled with the company’s ample cash , positions KT appropriately for his A3 rating.

KT’s adjusted debt/EBITDA fell from 2.0x in 2021 to 2.2x in September 2022 as the company’s consolidated debt increased to support its B2B investments, such as cloud, and the growth of its financial assets. BC Card. The weakening Korean Won also increased the reported value of KT’s foreign currency debt.

Environmental, social and governance (ESG) factors have an overall low impact on KT’s credit quality (CIS-2), reflecting the company’s low exposure to environmental risk and Moody’s view that KT’s good governance practices, as reflected in its conservative financial strategy, offset its moderately negative social risk exposure. KT’s exposure to social risks includes data security risks, occasional regulatory pressure on telecom charges, competition for talent in growing industries, and Korea’s long-term population decline. .

FACTORS THAT MAY LEAD TO IMPROVEMENT OR DEGRADATION OF RATINGS

Moody’s could upgrade if KT maintains revenue growth and improves margins; competitive and regulatory pressures in the Korean telecommunications market are waning; and KT maintains its prudent investment and financial policies. These developments could result in an adjusted debt/EBITDA below 1.8x or an adjusted EBITDA margin above 25% on a sustainable basis.

Moody’s could downgrade the rating if earnings from KT’s core telecommunications business decline due to an erosion of its market position, or due to intense competition or regulatory changes; or the company’s leverage increases due to aggressive debt-financed investments or shareholder distributions such that its debt/Adjusted EBITDA exceeds 2.5x and its Adjusted EBITDA margin falls below 20% constantly.

In addition, KT’s rating could come under downward pressure if its ability to continue its phone securitization program, as currently structured, becomes constrained as related borrowings are brought back to its balance sheet, which which would weaken its leverage.

The main methodology used in these ratings was that of telecommunications service providers published in September 2022 and available on https://ratings.moodys.com/api/rmc-documents/393391. Otherwise, please see the Scoring Methodologies page on https://ratings.moodys.com for a copy of this methodology.

KT Corporation is Korea’s largest integrated telecommunications service provider by revenue. It focuses on fixed telephony, broadband Internet access, data communication, mobile telecommunications, pay TV, leased line and satellite, as well as system and network integration services.

REGULATORY INFORMATION

For details on key rating assumptions and Moody’s sensitivity analysis, see the Methodological Assumptions and Sensitivity to Assumptions sections in the Disclosure Form. Moody’s rating symbols and definitions can be found at https://ratings.moodys.com/rating-definitions.

For ratings issued on a program, series, category/class of debt or security, this announcement provides certain regulatory information regarding each rating of a subsequently issued bond or note of the same series, category/class of debt, security or under a program for which ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a media provider, this announcement provides certain regulatory information relating to the credit rating action on the media provider and each particular credit rating action for securities whose credit ratings are derived from the support provider’s credit rating. For the provisional ratings, this press release provides certain regulatory information relating to the provisional rating assigned, and to a final rating that may be assigned after the final issuance of the debt, in each case where the structure and conditions of the transaction n have not changed prior to the final rating being assigned in a way that would have affected the rating. For more information, please see the issuer/transaction page of the respective issuer at https://ratings.moodys.com.

For all relevant securities or rated entities receiving direct credit support from the lead entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action , the associated regulatory information will be that of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to the jurisdiction: Ancillary services, Disclosures to the rated entity, Disclosures to be provided by the rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued without modification as a result of such disclosure.

These notes are solicited. Please refer to Moody’s Policy for the Designation and Assignment of Unsolicited Credit Ratings available on its website. https://ratings.moodys.com.

Moody’s considers a rated entity or its agent(s) to participate when they have an overall relationship with Moody’s. Unless otherwise specified in the Regulatory Disclosures as a non-participating entity, the rated entity is a participant and the rated entity or its agent(s) generally provide information to Moody’s for the purposes of its rating process. Please refer to https://ratings.moodys.com for regulatory information for each credit rating action, displayed on the issuer/deal page, and for Moody’s policy on naming nonparticipating rated entities, displayed on https://ratings.moodys.com.

The regulatory information contained in this press release applies to the credit rating and, if applicable, the outlook or rating revision relating thereto.

Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis are available at https://ratings.moodys.com/documents/PBC_1288235.

The worldwide credit rating on this credit rating announcement was issued by one of Moody’s affiliates outside the EU and is approved by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main. -le-Main 60322, Germany, in accordance with Article 4(3) of Regulation (EC) No 1060/2009 on credit rating agencies. Further information on the EU approval status and the Moody’s office that issued the credit rating can be found at https://ratings.moodys.com.

The worldwide credit rating on this credit rating announcement has been issued by one of Moody’s affiliates outside the UK and is approved by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the United Kingdom. . Further information on the UK endorsement status and the Moody’s office that issued the credit rating can be found at https://ratings.moodys.com.

Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and Moody’s legal entity that issued the rating.

Please see the issuer/transaction page at https://ratings.moodys.com for additional regulatory information for each credit rating.

The first name below is the primary rating analyst for this credit rating and the last name below is the person primarily responsible for approving this credit rating.

Sean Hwang
Assistant Vice President – Analyst
Corporate Finance Group
Moody’s Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queens Road
Hongkong,
China (Hong Kong SAR)
JOURNALISTS: 852 3758 1350
Customer Service: 852 3551 3077

Chris Park
Associate General Manager
Corporate Finance Group
JOURNALISTS: 852 3758 1350
Customer Service: 852 3551 3077

Release Office:
Moody’s Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queens Road
Hongkong,
China (Hong Kong SAR)
JOURNALISTS: 852 3758 1350
Customer Service: 852 3551 3077

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FTC draft order targets Drizly and its CEO for allegedly lax information security standards following data breach – Security https://upbeetcommunications.com/ftc-draft-order-targets-drizly-and-its-ceo-for-allegedly-lax-information-security-standards-following-data-breach-security/ Mon, 14 Nov 2022 08:25:24 +0000 https://upbeetcommunications.com/ftc-draft-order-targets-drizly-and-its-ceo-for-allegedly-lax-information-security-standards-following-data-breach-security/ November 14, 2022 Kramer Levin Naftalis & Frankel LLP To print this article, all you need to do is be registered or log in to Mondaq.com. On October 24, the Federal Trade Commission (FTC) released a proposal decision and order against Drizly LLC and its CEO regarding allegations that the company’s security lapses […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

On October 24, the Federal Trade Commission (FTC) released a proposal
decision and order against Drizly LLC and its CEO regarding allegations that the company’s security lapses led to a data breach exposing the personal information of approximately 2.5 million consumers in 2020. The order requires Drizly to put in implements a wide range of data security and privacy protocols and requires Drizly CEO James Cory Rellas to personally ensure that any company he joins as owner or manager maintains an information security program adequate, as stipulated by the terms of the order.

The proposed order, including a two-decade sentence imposed on Drizly and a 10-year sentence imposed on Rellas, highlights the FTC’s emphasis on information security and its willingness to impose tough penalties to senior executives for security failures. As Samuel Levine, Director of the FTC’s Consumer Protection Bureau, declared“Our proposed order against Drizly not only restricts what the company can retain and collect in the future, but also ensures that the CEO faces the consequences of the company’s negligence…CEOs who take shortcuts by safety issues should take note.”

Background

The action stems from a 2020 data breach in which a hacker gained access to an employee’s login credentials and then stole consumer information. According to the FTC complaint, Drizly – the online alcohol delivery marketplace and subsidiary of Uber – allegedly stored critical database information on an unsecured platform and failed to monitor its network for security threats. It also allegedly failed to implement basic measures to secure personal information collected, limit employee access to personal data, or develop adequate written security policies and train employees on those policies.

Consent Order Requirements for Drizly LLC

The FTC alleged that Drizly’s acts and practices constituted unfair and/or deceptive acts or practices, in or affecting commerce, in violation of Section 5(a) of the Federal Trade Commission Act. If the FTC’s proposed consent order is finalized in its current form, Drizly would be required to implement a litany of security and data privacy policies. The consent order would require Drizly to:

  • Destroy any unnecessary personal data it has collected and document and report to the FTC what data was destroyed.

  • Document, make publicly available, and submit to the FTC a retention schedule describing personal information collected by Drizly; the purpose for which this data is collected; and a deadline for the deletion of this data.

  • Refrain from collecting or storing personal data not necessary for a specific purpose described in a retention schedule (unless required by law, regulation, court order or contractual obligation).

  • Update its retention schedule to match any future decisions to collect new types of personal information.

  • Implement a comprehensive information security program, which includes measures such as employee security training, appointment of a high-level employee to oversee the information security program, implementing controls on who can access personal data and requiring multi-factor authentication to access consumer data.

  • For the next 20 yearsObtain biannual assessments from a qualified, objective, and independent third-party professional who will review Drizly’s information security program and identify gaps, weaknesses, or material non-compliance.

  • Submit a copy of the biennial assessment to the FTC and submit annual certifications to the FTC that Drizly continues to comply with the FTC’s consent order.

  • Immediately submit a report to the FTC within 10 days of notifying any U.S. federal, state, or local entity of a covered incident (such as a data breach).

These requirements insist in particular on the principle of minimization of data, which means that companies must limit the collection of data to what is directly relevant and necessary to accomplish a given purpose. This principle is a key aspect of complying with the General Data Protection Regulation in Europe and national privacy laws in the United States, such as the California Privacy Rights Act and the Virginia Consumer Data Protection Act.

Consent Order Requirements for CEO James Cory Rellas

The proposed consent order also personally applies to Drizly CEO James Cory Rellas and, if implemented in its current form, would bind him for 10 years after the order is issued. The harsh personal penalties imposed on Rellas stem from the authority he maintained at Drizly. Rellas co-founded Drizly and was COO before becoming CEO, and according to the FTC“At all times relevant to the allegations in this complaint, Rellas had the authority to monitor or participate in Drizly’s information security practices.”

The consent order states that if Rellas becomes a majority owner, CEO, or senior executive with information security responsibilities at a different company that collects consumer information for more than 25,000 people, he would be required to ensure that the company he joins has information security protocols in place that largely mirror the FTC’s command mandates for Drizly himself. Rellas would be required to ensure that the new business:

  • Documents its information security program or personal data protection methods/protocols.

  • Designates an employee responsible for the company’s information security program and provides an annual report to the board of directors or governing body evaluating its information security program.

  • Performs an annual assessment of internal and external risks to personal data.

In addition, for 10 years after the order is issued, for each company owned or controlled, individually or collectively, Rellas must deliver a copy of this order to:

  • All directors, officers, directors and managers and members of LLC.

  • All employees, agents, and representatives with management responsibilities for a Covered Business’s data security, collection of consumer information, and decision-making regarding the use of consumer information

  • Any employee with primary responsibility for data security of a relevant business, collecting consumer information, and making decisions about the use of consumer information.

In its press release, the FTC explained that because business leaders frequently move from company to company in the modern economy, this aggressive move will help ensure that companies protect consumer data and that CEOs learn from past mistakes.

Conclusion

The action underscores the responsibility of companies that collect consumer data to manage and protect that information from internal and external threats. This is another example of the FTC’s use of its unfair trade practices authority to control privacy and data minimization, all in the absence of a uniform federal privacy law. As the amount of consumer data collected by companies continues to grow across industries, the FTC said in August that it was actively exploring new rules regulate insufficient data security practices.

Importantly, the inclusion of reporting requirements to boards of directors or equivalent management bodies, coupled with the direct sanctions imposed on Drizly’s CEO, underscores that the protection and privacy of consumers’ personal information must involve high-level employees. Executives and managers should note that lax handling of consumers’ personal information could have both company-wide and individual-level consequences.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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UK CEOs pocketed big bonuses. Why? https://upbeetcommunications.com/uk-ceos-pocketed-big-bonuses-why/ Thu, 10 Nov 2022 09:10:45 +0000 https://upbeetcommunications.com/uk-ceos-pocketed-big-bonuses-why/ Comment this story Comment Like many people, UK CEOs have had a tough pandemic. Unlike a lot of people, they come out strong. A series of surveys have shown that the salaries of business leaders are rebounding to meet or exceed pre-Covid levels. The latest, from PwC this week, pegged the average total annual compensation […]]]>

Comment

Like many people, UK CEOs have had a tough pandemic. Unlike a lot of people, they come out strong. A series of surveys have shown that the salaries of business leaders are rebounding to meet or exceed pre-Covid levels. The latest, from PwC this week, pegged the average total annual compensation for FTSE 100 CEOs at £3.9m ($4.5m), an increase of more than 20% mainly due to bonus payouts . It strikes a dissonant note in a recession-bound economy where nurses plan to retire on a bid below inflation.

CEOs could say they’ve earned their boon. After crashing during the initial lockdown phase of the pandemic, when many executives took pay cuts as millions of workers were laid off, corporate profits have more than recovered to be comfortably higher than at the end of 2019. In the private economy, it’s up to owners to decide what they think their managers are worth. If shareholders are satisfied with the performance of their hired agents, then who should argue? The data suggests that they are indeed satisfied. Boards received 95% of votes in favor of compensation reports, according to PwC research, which is based on 97 published by FTSE 100 constituents and presented for approval during annual general meeting season 2022.(1)

Why they are so happy is a little harder to explain. Some 15% of CEOs were still subject to a pay freeze this year, up from 43% in 2021. Additionally, 38% received a lower percentage increase than the overall workforce, 56% having obtained a raise in line with the employees. These are the bonuses that deserve a closer look. These paid higher percentages than before the pandemic, according to PwC (which did not name individual companies). While this was driven by a post-Covid boom in some sectors, in others it reflected “performance targets that were set conservatively in 2021 to reflect greater market uncertainty”.

In other words, everything went pear-shaped when Covid hit, so companies lowered the bar for their CEOs. When things returned to something close to normal, those down targets were easily hit. The asymmetry is clear. Leaders were not responsible for the devastation of a once-a-century global pandemic and therefore did not deserve to be unduly penalized for something beyond their control. But they weren’t responsible for ending the pandemic either, so did they deserve to be so generously rewarded for the recovery? Tails I win, tails I don’t lose.

What makes shareholder acquiescence more difficult to understand is the FTSE 100’s continued inability to break out of its relative underperformance rut. Earnings may have recovered, but market performance has not. The S&P 500 has provided a total return, including reinvested dividends, of almost 30% since November 2019, even after this year’s correction, while the MSCI World Index has returned around 20%. Anyone who invested in the FTSE three years ago saw no gains, at least in US dollar terms.

Under the liberal market orthodoxy that has prevailed for nearly half a century in the UK and the US, excessive executive compensation should not be cause for concern. Companies theoretically compete in a free market for the best talent available, and the rewards for their leadership will justify what is paid. (Conversely, companies that make bad hiring decisions will suffer the consequences; in any case, the market can be trusted to decide.)

In truth, this theory has been depleted for decades, eroded by a growing number of academic publications and amid increased attention to the widening gap between the 1% (or 0.1% or 0.01%) of the highest paid and all the others. In the United States, the ratio of CEO pay to that of the average worker has risen from 20 in the mid-1960s to 399 to 1 in 2021, according to the Economic Policy Institute, a labor-affiliated think tank. In the UK, the one-measure ratio was much more modest at 109 to 1 last year. Either way, it’s hard to believe that CEOs have really risen in value relative to the average worker.

One of the theories as to why CEO pay continues to rise in defiance of apparent economic and market logic is known as the “Lake Wobegon Effect”, named after the TV host’s mythical hometown. radio station Garrison Keillor in Minnesota, where “all the kids are above average”. No company wants to acknowledge having a below-average CEO, prompting everyone to pay more or at least match the median of comparable companies. This fuels a perpetual upward wage spiral.

The liberal approach to CEO compensation is tied to the concept of shareholder value — the idea that a company’s sole objective should be to maximize the wealth of its investors. But this philosophy is losing its influence after decades of growing inequality. More and more UK companies are including environmental, social and governance, or ESG, objectives in their incentive plans for chief executives. This in itself is a recognition that companies have broader societal obligations beyond strict legal requirements.

The zeitgeist is changing. Since 2019, all listed companies with more than 250 employees in the UK have been required to publish the ratio of the CEO’s pay to the salaries of his local workers at three different levels of the pay scale. “We will improve incentives to tackle the problem of excessive executive pay and rewards for failure,” reads the 2019 election manifesto – not from the socialist-leaning Labor Party, but from the Conservative Party. in power, for which free enterprise is a guiding principle. Inequality is perceived today less as a question of social justice only, but also as a problem of the functioning of capitalism. Unlike the doctrine of free markets and deregulation that helped widen income disparities from the 1980s, a more even distribution of wealth can be good for economic growth.

UK compensation packages are, admittedly, modest compared to those in the US, where you’d need over $250 million even to break into the top 10 (Tesla Inc. founder Elon Musk topped the lot last year after exercising $23.5 billion worth of stock options The Economic Policy Institute excluded him from its 2021 survey because he allegedly skewed the data too much). But then the United States produced top tech giants and consistently superior stock returns.

The UK has no such consolation, only a cost of living crisis and a budget crisis to worry about. Under these conditions, the CEO’s salary windfall seems increasingly out of step with the times.

More from Bloomberg Opinion:

• Have Keystone Cops in the UK reached their peak yet? : John Authers

• Consumers begin to crumble under inflation: Andrea Felsted

• Wall Street bonuses contain inherent risk: Jared Dillian

(1) Investment trusts have been excluded.

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Matthew Brooker is a Bloomberg Opinion columnist covering Asian finance and politics. A former editor and bureau chief of Bloomberg News and associate business editor of the South China Morning Post, he is a CFA charterholder.

More stories like this are available at bloomberg.com/opinion

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Osinbajo, Uzodimma, Monguno, Yakubu lead conversations to https://upbeetcommunications.com/osinbajo-uzodimma-monguno-yakubu-lead-conversations-to/ Sun, 06 Nov 2022 23:03:16 +0000 https://upbeetcommunications.com/osinbajo-uzodimma-monguno-yakubu-lead-conversations-to/ All is now set for the 18th All Nigerian Editors Conference, starting on Thursday, with Vice President Yemi Osinbajo due to declare the conference open. National Security Advisor (NSA), General Babagana Monguno (retired), former Minister of Information and Culture, Chief Nnia John Nwodo, and Chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, […]]]>

All is now set for the 18th All Nigerian Editors Conference, starting on Thursday, with Vice President Yemi Osinbajo due to declare the conference open.

National Security Advisor (NSA), General Babagana Monguno (retired), former Minister of Information and Culture, Chief Nnia John Nwodo, and Chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, will lead discussions at the three-day conference held in Owerri.

The conference is supported by the Imo State Government and some companies including Nigeria National Petroleum Company Limited, Central Bank of Nigeria (CBN), United Bank for Africa (UBA), Glo, Zenith Bank, Access Bank, Air Peace and Nigeria Deposit. Insurance Company (NDIC).

The others are the Nigeria Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), among others.

A statement from its Chairman, Mustapha Isah and its Secretary General, Lyobosa Uwugiaren, the Nigerian Editors Guild (NGE) said Governor Hope Uzodimma would be the guest of honor while the former special adviser (media and publicity) of the president, Dr. Reuben Abati would deliver the keynote address, on the theme: “2023: political landscape, credible elections and the role of editors”.

Africa’s first female professor of mass communication and Deputy Vice-Chancellor of Paul University, Awka, Stella Chinyere Okunna, would preside over the opening ceremony.

Former Minister of Information and Culture, Chief Nwodo, during the second session of Day 1, would present a paper titled “Mobilizing Citizens for Sustainable Democracy in Nigeria”.

The morning session of Day 2, Friday, November 11, would see NSA Gen. Monguno present a paper: “2023 General Election and Security: What Editors Need to Know.”

The statement said that the second afternoon session on “Preparing for the 2023 General Elections: How Far, How Well” will be delivered by INEC Chairman Prof. Yakubu, while the third session will feature state governors, the chief executive of Nigeria’s National Petroleum Company Limited, Mele Kyari and other CEOs from the private and public sectors.

“The conference will end on Saturday with a gala evening where new fellows and guild members would be inducted. More than 400 publishers and media owners – from print, broadcast stations and online newspapers – have registered for this year’s conference.

Information Commissioner Declan Mbadiwe said: “We know the editors will have a good conference. Our state is hospitable and a good place for conferences. This is why we have organized many conferences this year. Publishers are welcome in the Eastern Heartland.

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Investors hammer Atlassian over missed results and weak outlook https://upbeetcommunications.com/investors-hammer-atlassian-over-missed-results-and-weak-outlook/ Fri, 04 Nov 2022 01:39:42 +0000 https://upbeetcommunications.com/investors-hammer-atlassian-over-missed-results-and-weak-outlook/ Investors hammered shares of Atlassian Corp. PLC after-hours trading after the Australian software company missed its earnings forecast and gave a weaker-than-expected outlook by analysts. For its fiscal quarter ended Sept. 30, Atlassian reported net income of $92.5 million, or 36 cents per diluted share, compared with $94.4 million, or 37 cents in the same […]]]>

Investors hammered shares of Atlassian Corp. PLC after-hours trading after the Australian software company missed its earnings forecast and gave a weaker-than-expected outlook by analysts.

For its fiscal quarter ended Sept. 30, Atlassian reported net income of $92.5 million, or 36 cents per diluted share, compared with $94.4 million, or 37 cents in the same quarter a year ago. Revenue rose 31% to $807.4 million. Analysts had was waiting earnings per share of 38 cents on revenue of $806.4 million.

Atlassian added 6,550 new customers during the quarter, its 10th quarter of customer growth, bringing its total number of customers to 249,173. However, the total number was below the expected 250,700 customers. Slowing growth was a recurring theme throughout Atlassian’s strategy. letter to shareholderswith co-founders and co-CEOs Mike Cannon-Brookes and Scott Farquhar warning that Atlassian is not immune to the broader macro market.

The two said Atlassian continued to see a slower rate of free usage of its software converted to paid plans and began to see a slower rate of growth in paid seats from existing customers as companies slow their pace. hiring.

Highlights of the quarter include the launch of Atlassian Together, a unique new subscription to its work management products Trello, Confluence, Atlas and Jira Work Management. The subscription service includes Access, an enterprise-grade identity and access solution that connects Atlassian products to third-party vendors.

The company also has launched the Atlas, a new teamwork directory designed to help organizations ensure alignment across teams, apps, and work, no matter what tools their teams use. A new partnership with Accenture PLC would also help companies adopt agile ways of working.

Although still headquartered in Australia, Atlassian changed its headquarters from the UK to the US during the quarter, resulting in its transition to new accounting standards. The move is said to increase access to a wider set of investors and provide more flexibility in accessing capital.

For its fiscal 2023 second quarter ending Dec. 31, Atlassian forecasts revenue of $835 million to $855 million. Analysts expected $879.2 million. The outlook also comes with a disclaimer that it is based on current macroeconomic conditions that do not change. Given the deteriorating global outlookit’s unlikely.

After plunging more than 25% late in the session, Atlassian stock stabilized somewhat and fell nearly 23%.

Photo: Atlassian

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LAWSUIT ALERT: A lawsuit filed by a shareholder against BTRS Holdings Inc. (BTRS) in connection with… | New https://upbeetcommunications.com/lawsuit-alert-a-lawsuit-filed-by-a-shareholder-against-btrs-holdings-inc-btrs-in-connection-with-new/ Sun, 30 Oct 2022 23:35:40 +0000 https://upbeetcommunications.com/lawsuit-alert-a-lawsuit-filed-by-a-shareholder-against-btrs-holdings-inc-btrs-in-connection-with-new/ PHILADELPHIA, Oct. 30, 2022 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that a lawsuit has been filed against BTRS Holdings Inc. (“Billtrust” or the “Company”) (NASDAQ: BTRS). On September 28, 2022, Billtrust announced that it would be acquired by EQT X Fund, a subsidiary of private equity firm EQT. According to the announcement, Billtrust shareholders […]]]>

PHILADELPHIA, Oct. 30, 2022 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that a lawsuit has been filed against BTRS Holdings Inc. (“Billtrust” or the “Company”) (NASDAQ: BTRS).

On September 28, 2022, Billtrust announced that it would be acquired by EQT X Fund, a subsidiary of private equity firm EQT. According to the announcement, Billtrust shareholders are expected to receive only $9.50 per share for their shares. In particular, before the announcement of this plan to sell the Company to EQT, several analysts had assigned a target price for BTRS shares above the buyback price.

The complaint alleges that Billtrust and certain of the company’s senior officers and directors violated federal securities laws (including by filing a materially incomplete and misleading proxy statement with the SEC) in connection with the proposed sale of the society.

Billtrust shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email (skaskela@kaskelalaw.com/abell@kaskelalaw.com) or online athttps://kaskelalaw.com/cases/btrs-holdings-inc/for more information about this action and their legal rights and options.

Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger and acquisition litigation. For more information about Kaskela Law LLC, please visit www.kaskelalaw.com.

CONTACT:

D.Seamus Kaskela, Esq.

Adrienne Bell, Esq.

SARL DE LOI KASKELA

18 Campus Blvd., Suite 100

Newtown Square, Pennsylvania 19073

(484) 229 – 0750

(888) 715-1740

www.kaskelalaw.com

This notice may constitute advertising for attorneys in some jurisdictions.

Copyright 2022 GlobeNewswire, Inc.

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Company executives could be forced to repay bonuses for accounting errors under new SEC rule https://upbeetcommunications.com/company-executives-could-be-forced-to-repay-bonuses-for-accounting-errors-under-new-sec-rule/ Thu, 27 Oct 2022 21:13:00 +0000 https://upbeetcommunications.com/company-executives-could-be-forced-to-repay-bonuses-for-accounting-errors-under-new-sec-rule/ The SEC is cracking down on executive bonuses. AFP via Getty Images Company executives who falsely report their finances will lose their bonuses under a new rule passed by the Securities and Exchange Commission yesterday (October 26). The to reignwhich is due to take effect in one year, will require all public companies to adopt […]]]>
The SEC is cracking down on executive bonuses. AFP via Getty Images

Company executives who falsely report their finances will lose their bonuses under a new rule passed by the Securities and Exchange Commission yesterday (October 26).

The to reignwhich is due to take effect in one year, will require all public companies to adopt so-called “clawback” policies that void executive incentive compensation if their companies revise their previous financial statements to correct an accounting error (a practice commonly reprocessing). In the event of an error, companies must have a policy to claw back executive incentive compensation, including stock options, dating back three years from the date a restatement was issued.

Although the rule aims to prevent corporate executives from keeping erroneously awarded salaries, such policies have proven difficult to enforce for S&P 500 companies, most of which already have clawback regulations in place. Past examples of failed clawback attempts at companies like Goldman Sachs suggest that clawbacking executive bonuses can prove tricky, even with tighter regulatory oversight.

SEC seeks to crack down on executives who misrepresent financial information

A clawback rule was included in the 2010 Dodd-Frank Act passed by Congress in the wake of the financial crisis, but never adopted by the SEC. Although a rule was introduced in 2015, it was never finalized and remained intact in the years that followed when Republicans controlled the agency. Gary Gensler, a Democratic appointee and current SEC Chairman, announced earlier this month that the agency was reopening comments on the 2015 rule. It passed 3-2, with all Commission Democrats in favor and Republicans against.

Gensler explained the reasoning behind the policy in a report before yesterday’s vote. “Corporate leaders are often paid based on the performance of the companies they run, with factors that can include company revenue and profits,” he said. “If the company makes a material error in preparing the financial statements required under securities laws, however, an executive may receive compensation for reaching a milestone that, in reality, was never reached.”

One of the most notorious financial restatements in history occurred at Enron Corporation, which admitted in 2001 to having overstated its profits by about $600 million over a period of five years. The Enron scandal contributed to the rapid passage of the Sarbanes-Oxley Act in 2002, which imposed certain financial record-keeping requirements on public companies and included a provision requiring CEOs and CFOs to reimburse bonuses and other compensation incentive or equity-based. to their company following a restatement.

Most S&P 500 companies adopted clawback policies in the wake of Sarbanes-Oxley, and today all but 21 of those companies have implemented some sort of clawback, according to ISS Corporate Solutions, a data provider. and analytics for businesses.

Because the SEC rule applies to all public companies, it will widen the pool of U.S. companies where executives are likely to lose their bonuses if an accounting error occurs. ISS notes that smaller companies are less likely to have clawback policies on the books, especially in sectors such as healthcare and communications services. Hester M. Peirce, a commissioner who voted against the rule, quoted an estimate suggesting the rule could apply to up to 50,000 public company employees.

This rule will also expand the types of restatements that could trigger a clawback. While the 2015 rule would only apply to major accounting errors, resulting in a restatement of previous years’ financial results, the recent rule passed by the SEC will require companies to claw back incentive compensation when small errors also occur.

Past examples suggest SEC rules can be difficult to enforce

While the SEC’s rule aims to prevent executives from providing misleading financial statements that inflate their earnings, “it’s not clear that it will achieve that,” said Sanjai Bhagat, a professor of finance at the University of Colorado in Boulder who previously worked for the SEC.

“When companies have tried to use the clawback to recover compensation from their executives…the companies haven’t had much success,” he noted. Goldman Sachs, for example, has been unable to recover money from certain executives over the 1MDB Corruption Scandal, in which executives bribed foreign officials to secure business for the bank. A former Goldman executive, Gary Cohn, never returned his salary to the company and donated it to charity instead.

Part of what makes clawbacks difficult to enforce is how executives are typically compensated, with incentives based on short-term measures such as stock options, Bhagat said. By the time executives are ordered to repay their company, the funds have sometimes already been spent. In an article for the Harvard Business Review published last year, Bhagat and Charles M. Elson, founder of the Weinberg Center for Corporate Governance at the University of Delaware, argued that the problem could be solved by offering incentive compensation in the form of restricted shares that cannot be sold. or exercised until the departure of an executive from the company.

This approach “would address the SEC’s concerns about clawbacks in a much more efficient way,” Bhagat said.

In recent years, some companies have begun to delay paying senior executives in case they are found liable for misconduct down the road. Like Elson told the Wall Street Journal last year, “the most effective way to get it back is to never give it away to begin with.”

Company executives could be forced to repay bonuses for accounting errors under new SEC rule

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POOLCORP will ring the opening bell for the Nasdaq stock market https://upbeetcommunications.com/poolcorp-will-ring-the-opening-bell-for-the-nasdaq-stock-market/ Mon, 24 Oct 2022 11:00:00 +0000 https://upbeetcommunications.com/poolcorp-will-ring-the-opening-bell-for-the-nasdaq-stock-market/ COVINGTON, Louisiana, Oct. 24, 2022 (GLOBE NEWSWIRE) — Pool Corporation (Nasdaq: POOL) will ring the opening bell for the Nasdaq MarketSite on Tuesday, October 25, 2022, to celebrate more than 25 years of listing on the exchange. Peter Arvan, CEO, will be joined by several POOLCORP officers and directors to commemorate the occasion. The ceremony […]]]>

COVINGTON, Louisiana, Oct. 24, 2022 (GLOBE NEWSWIRE) — Pool Corporation (Nasdaq: POOL) will ring the opening bell for the Nasdaq MarketSite on Tuesday, October 25, 2022, to celebrate more than 25 years of listing on the exchange. Peter Arvan, CEO, will be joined by several POOLCORP officers and directors to commemorate the occasion.

The ceremony will take place from 9:15 a.m. to 9:30 a.m. ET (8:15 a.m. to 8:30 a.m. CT). A live broadcast of the event will be available on https://www.nasdaq.com/marketsite/bell-ringing-ceremony.

You can also follow POOLCORP on Facebook to see photos from the event and for the latest information. A video featuring POOLCORP will be displayed on the Nasdaq Tower in Times Square.

About Pool Corporation
Pool Corporation is the world’s largest wholesale distributor of swimming pools and related garden products. POOLCORP operates approximately 415 sales centers in North America, Europe and Australia through which it distributes over 200,000 national brand and private label products to approximately 120,000 wholesale customers. For more information about POOLCORP, please visit www.poolcorp.com.

About the Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us at LinkedInon Twitter @Nasdaqor at www.nasdaq.com.

CONTACT:

Curtis J. Scheel
Investor Relations Director
985.801.5341
curtis.scheel@poolcorp.com

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The challenge of tackling international profit shifting https://upbeetcommunications.com/the-challenge-of-tackling-international-profit-shifting/ Tue, 18 Oct 2022 10:00:39 +0000 https://upbeetcommunications.com/the-challenge-of-tackling-international-profit-shifting/ Tax policy reform in Chile, aimed at reducing corporate profit shifting mechanisms, has not produced the expected effects. Instead, the impact has been increased business for the tax advisory industry. In 2019, Google reported $26.5 billion in earnings in Bermuda. It’s clearly not because all of Google’s customers or all of their employees live in […]]]>

Tax policy reform in Chile, aimed at reducing corporate profit shifting mechanisms, has not produced the expected effects. Instead, the impact has been increased business for the tax advisory industry.


In 2019, Google reported $26.5 billion in earnings in Bermuda. It’s clearly not because all of Google’s customers or all of their employees live in this beautiful country. Much more likely, it has to do with the company’s strategic tax avoidance and the fact that Bermuda happens to be a low-rate tax haven.

It has been a long-standing concern that multinational corporations avoid paying taxes by shifting their profits to low-tax countries. Profits can be shifted from one country to another by strategically pricing intragroup transactions of goods, services and assets. For example, a subsidiary in Chile may purchase services at high prices from a subsidiary in a low-tax country. This transaction reduces the tax base in Chile and increases it in the low-tax country, thereby reducing the multinational’s overall tax bill. Such profit shifting can have serious implications for the public finances of governments around the world.

For this reason, the OECD has spearheaded internationally standardized regulations in an effort to combat international tax evasion. These reforms involve increased reporting and monitoring of international transactions to enforce the so-called “arm’s length principle”. This principle states that the subsidiaries of a multinational company must act as if they were separate entities, exchanging goods, services and assets at the prevailing market price. In practice, the arm’s length principle can be difficult to monitor, and so the OECD reforms have increasingly required reporting to justify the location and pricing of cross-border activities within a multinational group.

“It turns out that there has been a big beneficiary of the reform: the tax advice industry.”

But as multinational companies are required to report more and more information to tax authorities, and as tax authorities spend more and more resources trying to monitor them, a key question remains: how effective are these efforts ? And what role does the powerful tax advisory industry play in all of this?

Rigorous assessment of these issues has proven difficult. Access to the necessary tax data at the micro level is scarce, and countries often tighten these regulations incrementally over time, making it difficult to measure their effects. In a new article (The race between tax enforcement and tax planning), we shed light on these issues by exploiting a broad tax policy reform in Chile aimed at limiting profit shifting. This 2011 reform catapulted Chile from laggard to leader in adopting existing OECD regulations at the time.

This gives us the rare opportunity to analyze the impact of such regulation. We combine in-depth quantitative analysis with qualitative insights from in-depth interviews with tax experts. The quantitative analysis uses micro-level administrative tax data on the universe of all medium and large enterprises in Chile. Qualitative information is based on interviews with transfer pricing consultants, internal tax managers in multinational companies and tax administration officials.

The rich administrative tax data allows us to analyze the impacts on all potential channels of international profit transfer: payments for services, interest, intellectual property and goods. We use a difference-in-differences event study model to compare the payments these firms make to their overseas affiliates with those they make to unrelated firms in the same countries. To our surprise and that of the tax administration, we found no effect on each of these channels, as well as on the total taxes paid by multinationals. The policy proved ineffective in achieving its stated goals.

Nothing happened at all? So why was this reform generally perceived among the companies concerned as a radical change in the taxation of multinational companies in Chile? To find out more, we conducted in-depth interviews with in-house tax accountants, tax advisers and auditors.

It turns out that there was a big beneficiary of the reform: the tax advice industry. In Chile, the number of consultants advising multinationals on international transfer pricing at the big four consultancies (i.e. Deloitte, EY, KPMG and PWC) has increased twelvefold in just a few years.

Through the qualitative interviews, we uncovered some interesting dynamics in this process. Following the reform, many multinationals began to employ tax advisers for compliance assistance. Consultants then leveraged these relationships to offer upsells to corporate clients, encouraging them to engage in more complex tax planning. Through such tax planning, consultants have helped multinational corporations “optimize” their tax payments. This dynamic has led to a surge in demand for transfer pricing experts.

Big Four consulting firms were able to respond quickly to this demand shock in Chile by importing experts from affiliates located in other countries, such as Argentina, Colombia, Spain and Venezuela. This was possible due to the internationally standardized nature of transfer pricing regulations, which made the consultants’ extensive experience with transfer pricing regulations in other countries transferable to Chile.

This capability is important because corporate tax advisers often outnumber tax administration officers by an order of magnitude. A UK Parliament report (Public Accounts Committee, 2013) on tax avoidance and the role of large accountancy firms puts it as follows:

“HMRC [the British tax authority] seems to be fighting a battle it cannot win in the fight against tax avoidance. Businesses can devote considerable resources to ensure that they minimize their tax burden. There is a large market for advising businesses on how to take advantage of international tax law and the tax implications of different global structures. The four companies employ nearly 9,000 people and earn £2bn from their tax work in the UK. In the area of ​​transfer pricing alone, there are four times as many employees working for the four companies as for HMRC.

Our interviews in Chile provide rich qualitative insights into the impact of the reform on multinationals and tax advisers. We were able to quantitatively test some of this information with administrative tax data. By iterating between qualitative and quantitative analysis, we can test the hypotheses generated from the interviews with our administrative tax data.

Specifically, interviews revealed that one of the most popular strategies was to consolidate service cost centers into a few tax-efficient locations. We confirm this mechanism in administrative tax data, where we find that multinationals indeed concentrate their payments to foreign affiliates in fewer countries following the reform. This reduction only occurs for countries that are not tax havens and, in accordance with the mechanisms described in the interviews, focuses on payments for services. Examples include payments for marketing, human resource or sales activities within the multinational conglomerate. It is particularly difficult for a tax authority to verify whether these services are priced in accordance with the arm’s length principle.

Taken together, these results suggest that accounting for the tax advisory industry is key to understanding the effects of tax regimes. New reporting and compliance requirements can create an incentive to purchase outside tax preparation services, which in turn can facilitate the adoption of more sophisticated tax planning strategies.

Given that the reform increased both compliance and enforcement costs but did not result in additional tax collections, our combined evidence suggests that the reform benefited the tax advisory industry but decreased the general well-being. In the race between execution and tax planning, in this case tax planning seems to have won.

Over the past five years, Juan Carlos Suárez Serrato has received research fellowships from the International Tax Policy Forum, the Kauffman Foundation, the Russell Sage Foundation, and the Washington Center for Equitable Growth. None of the results in this article or others have been reviewed by any funding agency.

Discover our disclosure policy here.

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CA Sri Lanka CEOs Forum focuses on economic recovery and debt sustainability https://upbeetcommunications.com/ca-sri-lanka-ceos-forum-focuses-on-economic-recovery-and-debt-sustainability/ Mon, 10 Oct 2022 00:19:00 +0000 https://upbeetcommunications.com/ca-sri-lanka-ceos-forum-focuses-on-economic-recovery-and-debt-sustainability/ The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) recently hosted a CEO Forum Breakfast which focused on what Sri Lanka needs to do to move from crisis to sustainability as the country fight against the worst economic disaster in its history. Verité Research Executive Director Dr. Nishan de Mel delivered the […]]]>

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) recently hosted a CEO Forum Breakfast which focused on what Sri Lanka needs to do to move from crisis to sustainability as the country fight against the worst economic disaster in its history.

Verité Research Executive Director Dr. Nishan de Mel delivered the keynote address at the event which was attended by top CEOs and company presidents. The keynote address was followed by an insightful panel discussion attended by the Director General of the Fiscal Policy Department of the Ministry of Finance, Dr Kapila Senanayake, the Chairman of John Keells Holdings and the Deputy Vice Chairman of Ceylon Chamber of Commerce Krishan Balendra, EY’s Country Managing Partner in Sri Lanka and the Maldives, and Manil Jayesinghe, outgoing Chairman of CA Sri Lanka, Thilan Wijesinghe, Chairman and CEO of TW Corp Ltd. and former chairman of the BOI, and Dimantha Matthew, head of research at First Capital PLC. The session was moderated by the President of CA Sri Lanka, Sanjaya Bandara.

Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, Commissioner General of Revenue, DRS Hapuarachchi, and Chairman of the Securities and Exchange Commission, Viraj Dayaratne PC were among the special guests who attended the forum.

CA Sri Lanka Managing Director, Dulani Fernando, set the tone for the event by delivering a welcome speech in which she explained the need for collective effort from government, policy makers, private sector, public sector and professional organizations to play their part in helping to rebuild Sri Lanka’s economy.

“As a leading professional body, CA Sri Lanka has already taken the initiative to organize the first ever tax symposium where we deliberated and discussed prudent tax policies for economic stability and earlier we also submitted a comprehensive package of proposals to the Ministry of Finance and The Central Bank is focused on reviving the economy,” she said.

In his keynote address, Dr. de Mel gave an overview of the country’s current economic situation and highlighted inflation, which has reached 64%, while food inflation is at 93.7%. He noted that food inflation was “particularly worrying” as it has huge implications for poverty and poverty lines. “In 2019, the poverty line was 6966, but in July this year it is about to double, and when poverty lines double, the poverty level can even triple,” he warned. .


He said that when business is business as usual, the results will also be the same. Continuing to elaborate, Dr de Mel pointed out that “business as usual” means that over the past 56 years, Sri Lanka has been part of 16 IMF programs and has failed to complete seven of them. them, which were long-term programs. “We have a record where we haven’t achieved that kind of goal. So if all is business as usual, then we should expect the results to be “usual” as well, meaning we might even miss this IMF target, and then the expected projections won’t be not achieved and Sri Lanka will be in trouble again five years from now asking the world for help again,” he warned.

According to him, only the economy or vested interests can survive. He blamed “vested interests” as the culprit for driving the economy to its current state. “You are among the most powerful in trying to change the course of Sri Lanka’s economy, and you must know that both cannot survive, and if vested interests are in check, then we can move away from the status quo. and charting a better course for the economy of Sri Lanka,” he told the business leaders.

During the roundtable, Balendra provided a detailed overview of how the increased power shortages and outages in previous months had impacted day-to-day operations, in addition to detailing new measures that his company took to educating farmers on better farming practices, as many had relied on and abused the heavy subsidies given in the past.

Sharing his experience, Wijesinghe, who has been involved in several privatizations of public entities in the past, explained that what Sri Lanka needs to succeed is “political leadership” without which the country will return to starting point.


While emphasizing the need to raise awareness and educate the public on why paying taxes is important and how it helps the economy, Jayesinghe said it is also important to look at the whole picture. equation of incentives and why they should only be given if it contributes to the greatest growth of the economy.

Dr Senanayake said that in the past Sri Lanka had gone through a series of crises but this is a serious crisis and blamed a legacy of policy mistakes and missed opportunities for reform that have brought Sri Lanka to the present state.

Matthew predicted a ‘recovery’ with new SMEs likely to establish themselves early to mid next year. However, he warned that positive GDP growth will not be seen until at least the fourth quarter. “If this is the case, the negative GDP growth will continue for a longer period and the financial sector should be particularly focused on survival, until the economy gets back on track.”


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