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Who gets the business vote?

What outcome do some of the nation’s top business chiefs want?

April 28, 2010 16:44
The election is an ideal opportunity for the parties to outline a clear vision for the UK’s economic future says Sir Martin Sorrell

By

Candice Krieger,

Candice Krieger

5 min read

Sir Martin Sorrell, chief executive of WPP Group

Now that we are nearing polling day, it is probably a good time to ask why so many large companies have become so disenchanted with the UK.

First, there's clearly the macro point. If you're running a global company, whether public, private or private equity-owned, one of the key factors - if not the key factor - in determining long term share owner value, is topline sales growth.

Why wrestle with a slow growth rate, government-controlled economies and regulatory burdens, when you can push a relatively open door in Brazil, Russia, India and China (the BRICs) or the Next -10 markets (with apologies to Goldman Sachs) - Vietnam, Philippines, Bangladesh, Nigeria, Turkey, Egypt, Indonesia, Mexico, Pakistan, South Korea (excluding Iran, at least for the moment). The energy and urgency and growth potential of these markets is far more attractive, and simply easier, than Western Europe (which includes the UK) for certain - though maybe not the US, given its size and relative homogeneity. Shareowners and employees of global companies are right to expect their managements not to be unduly influenced by their national origins.

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