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Priorities for the Coming Year
In the coming year, the priority will be to continue the focus
on exemplary service delivery to retain existing clients, and to
offer them additional services to help them further understand and
communicate with retail and institutional investors.
The key focus areas will include:
- Continued attention on cost reduction and client retention
strategies.
- Helping clients develop strategies to address their retail
shareholders long term with shareholder relationship management
programs aimed at delivering cost savings, additional revenue
and, where appropriate, liquidity in the retail base.
- Supporting clients’ cost saving objectives through e-Communications
initiatives and programs to trace missing shareholders.
- Introducing UK clients to our ADR capability, so they can take
advantage of Computershare’s integrated network and extensive
knowledge of securities markets.
- Providing clients with an integrated set of services such as
share option plans with low cost dealing.
- Increase the use of automated phone based and web based services
by issuers, shareholders and brokers.
- Increase revenue from the contact centre facility as part of
communications programmes for nonregistry clients.
PLAN MANAGERS (CPM)
The Year in Review
Our strategy this year has been to focus on plan implementation,
client retention and growth, specifically with clients administering
multiple plan types in different countries.
After a period of rapid growth this has been a year of consolidation,
where we have invested in new technology and improved management
and operational processes. Our focus has been to ensure the successful
implementation of new share plans and to introduce new technology
to improve efficiency and service. COSMOS Options, which allows
employee plan members around the world to conduct transactions online,
was successfully introduced for Philips. An Interactive Voice Response
enrolment system has improved services for new plan participants
– speeding up registration and improving internal efficiency. There
have been enhancements for online services for plan members including
historical transaction enquiries, and enrolment, account closure
and maturity transactions plus real time share price information.
We have also integrated share trading with our share plan administration
packages and this has significantly increased our ability to generate
revenues from sources other than core administration.
The main services Plan Managers have promoted during the year
are Share Incentive Plans (SIP) and Executive Share Options Plans.
While our focus has been on consolidation, we have still increased
our revenues significantly and attracted some sizeable new business
from blue-chip clients.
Market Conditions
The year was characterised by a slow-down in option plan activity
following proposed changes in accounting treatment for options and
the general economic downturn. Despite these conditions, the plans
business performed well, and against the trend, by producing an
increased contribution to revenues and to EBITDA.
Significant Transactions
Major new executive options and share incentive plan schemes have
been won from blue chip clients including:
- Global share plans for British American Tobacco.
- Global share plans for Reckitt Benckiser.
- Share Incentive Plan for the Royal Bank of Scotland.
- Share Incentive Plan for Powergen.
Working with Ernst & Young UK, we undertook a series of share plan
workshops addressing key topics for clients.
Priorities for the Coming Year
- Improve online and IVR services to further enhance services
to plan members
- Target global companies with large employee pools
- Continue to improve the quality of services in order to gain
more plans business from new clients and from existing clients
of our other business.
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