Most directors prefer to be on private boards, and that is a big worry
Sobering new survey findings should worry policymakers, regulators and anyone with an interest in the health and resilience of the country’s listed markets.
A well-documented and increasing preference by growing businesses for private capital over public markets is spilling into the ranks of non-executive directors at the nation’s top listed companies.
The shift should raise alarm bells for Australia’s main bourse and its ability to attract the best and most qualified people to listed markets. It’s particularly worrying because the ASX is also grappling with the continued hollowing out of the number of listed entities, as mergers and acquisitions continue apace but the initial public offering pipeline stalls again. (Albeit this year that’s largely due to geopolitical factors and the conflict in the Middle East.)
