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Bamboo Bridge Logistics: Linking Executive Remuneration to Sustainability Goals
In January 2024, Mei Lin was appointed as Chief Sustainability Officer of Bamboo Bridge Logistics (BB), a mid-sized logistics operator based in Singapore. Her key task over the next three years is to support the newly-formed sustainability committee that would report to the Board of Directors (BOD). Mei faced significant challenges in weaving environmental, social, and governance (ESG) principles into BB's fabric. She not only had to put in place measures for ESG goals on climate change, but also to link these goals to executive remuneration. She was also aware that the company harboured ambition to become publicly listed on Singapore's stock exchange, the SGX, likely not long after implementing its sustainability initiatives. How could Mei help BB's sustainability committee in selecting the appropriate indicators that reflect the company's commitment addressing climate change challenges, while mitigating the potential negative financial impact? What roles should BB's BOD play to ensure the effective implementation of ESG metrics in executive remuneration, bearing in mind the balance between short-term financial profitability and long-term environmental sustainability? -
Yung Kee: Resolving Corporate Governance Troubles in A Hong Kong-based Family Business
This case describes the trials and tribulations that tested Yung Kee Restaurant, a Chinese roast goose restaurant in Hong Kong. The former Michelin-star eatery, founded by Kam Shui-fai, received several other accolades, including recognition by Fortune magazine as one of the world's best restaurants. Unfortunately, with the passing on of Kam Senior in 2004, a bitter feud over the ownership and management of Yung Kee erupted among his children; the public dispute tore the family apart. At one point, Kam family members refused to even acknowledge one another in social settings. In July 2010, the elder Kam brother, Kinsen, applied to the Hong Kong High Court to liquidate Yung Kee Holdings, if his younger brother, Ronald, refused to buy out his stake. In 2015, the court instructed Yung Kee Holdings to close its business, which could spell the end of the restaurant, which was its crown jewel and a culinary institution in the city. Fast forward to 2020, Yung Kee has survived the ordeal. A third-generation member of the Kam family became Chief Financial Officer (CFO) of the restaurant and helms the family business. What could have been done better in terms of corporate governance? In what other ways could the family business be organised?