Archives for June 27, 2018

‘The Lean Startup’ Author Eric Ries Talks About His Long-Term Stock Exchange

Eric Ries is on a mission to overhaul the way corporations conduct their business by establishing what he calls a Long-Term Stock Exchange.

Speaking Tuesday during the Fortune CEO Initiative conference in San Francisco, The Lean Startup author made his case for his new company, with financial backers including the venture capital firm Andreessen Horowitz.

By creating an entirely new stock exchange that focuses on the long-term financial health of a company, Ries believes that new companies won’t have to deal with the pressures of pleasing fickle shareholders every quarter.

Echoing comments made by Apple CEO Tim Cook on Monday during the Fortune event, Ries criticized the conventional quarterly earnings cycle, in which shareholders judge a company’s financial performance within a 90-day period.

By focusing on such a small, truncated period of time, shareholders don’t actually have a good idea of true financial health of a business as the years progress, Ries explained.

The creation of a new stock exchange would allow for shareholders to invest in a company for a longer period of time without the fear that a bad quarter means potential doom. The fact that a company’s share price might plummet 10% for a day, would not be considered “news,” because these long-term investors would be in it for the long haul, Ries said.

He believes that “the voting power of a shareholder should be proportional to how long you own the stock.”

“Someone who day trades shouldn’t have the same corporate responsibility as someone who owned the stock for 10 years,” Ries said.

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Under his new stock exchange, Ries would also require that “every board have a product and strategy committee.” Many boards currently consist of too many lawyers, which can be a problem “if no one is watching long-term strategy,” Ries said.

New Zealand's Z Energy flags possible data breach in online card system

(Reuters) – New Zealand-based fuel supplier Z Energy Ltd on Wednesday said it has been presented with evidence that customer data from its Z Card Online database was accessed by a third party in November 2017.

The database held customer data such as names, addresses, registration numbers, vehicle types and credit limits with the company, Z Energy said in a statement. The data accessed did not include bank details, pin numbers or information that would put customer finances directly at risk, it said.

Z Energy did not specify the extent to which its customer data had been compromised.

The company said it had notified affected customers and advised the Privacy Commissioner of the breach. It said the system in question had been closed since December 2017.

The Z Card allows customers to manage fuel accounts online, and is used primarily by companies with vehicle fleets.

Z Energy said it had been made aware of a potential vulnerability in the system in November, but had not found evidence of any data breaches at that time.

Z Energy operates in both New Zealand and Australia. New laws in Australia requiring companies to report data breaches took effect in late-February this year.

Reporting by Ambar Warrick in Bengaluru