Encomium
Pearl Awards is based on verifiable facts and figures. The award is predicated on data sourced from financial reports of quoted companies, presented at annual general meetings, as well as stock trading performance of companies, documented trading report of the Nigerian Stock Exchange annually under reference and daily official lists.
ENCOMIUM Weekly had a chat with Tayo Orekoya, President/CEO, Pearl Award Nigeria and he explained how a winner emerges.
How did Pearl Awards idea start?
Pearl Awards started out of the need to fill a gap. Sometime in 1994, there was a programme on television called Stock Market briefing. The programme that monitored the performance of companies on stock exchange, conducting interviews based on facts and figures was on ground.
Then we realised that there was a huge gap to reward excellent performance based on empirical statistics and actual performance. Within five months the first Pearl Awards was staged on March 27, 1995.
What is the economic impact and relevance of Pearl Awards to the Nigerian economy?
First, Pearl Awards is to reward companies for outstanding performance and excellence. Over the years, by the nature of the awards and the categories, we have competition within the leadership categories and also for the entire market.
Under the market excellent award categories, one impact that has come up is every year companies that are quoted on the stock exchange look forward to emerging, first as nominees, and second as ultimate winner of the sectorial leadership award and also market excellent award.
The company that emerges must have affirmed it’s the leader in the market. And effect of leadership in stock exchange, you find the agitation where the company that leads the award share price begins to go upward, because Pearl Awards has become a reference point.
Second, it stands as a field for an investor to know which stocks should be invested in. So by winning this award, it helps the company to improve their return to the stakeholders. Again, Pearl Awards is set to create awareness and demystify capital market.
Are you incorporating socio economic sector among the companies to be awarded?
The acronym of Pearl Awards is Performance Earning and Returned Leadership award, for companies quoted on the stock market. That is why the award is based on verifiable indices, confirmable facts and figures. We are actually focusing on capital market.
However, what we have done is to give award to special recognition category, an honourary award, which would be related to capital market. Beyond that, the board has approved that we are awarding good corporate governors, these are the areas we’re looking at. In future, there would be update on that.
Apart from empirical analysis you mentioned, what other indices did you use to select your awardees?
One of the indices we use, is that companies that are nominated are made to comply with the listed requirement of stock exchange. Second, we ensure that the company comply with everything related to good corporate governance in ensuring that the company that emerges is not found wanting.
We ensure that we do not have any sentiment about which company emerges winner of the award. And for the company to qualify, it must have five listed companies that have submitted their annual report in the stock exchange competing in that sector. So, these are some guidelines that we have put in place and ensure we do not influence them.
Will there be a time the Pearl Awards would be taken out of Lagos?
You will agree with me that Lagos is the commercial capital of Nigeria, we have 60 – 65 percent of corporate entities in Lagos. However, in no time we shall move Pearl Awards to Abuja and other states.
Can you tell us your experience and challenges staging this event?
One thing that is not a challenge to us is the issue of credibility. Maybe because we started with a strong board of governors and people saw that this people are first class and professionals. Finance is part of challenge. Though we have a very good award, when you look at our account we have deficit. But we never relent because we have vision. Today we have partners and organisations willing to support the vision.
Talking about your supporters, how would you explain or justify the sensitivity of your objective, if some of these supporters are also part of the company you are considering?
The criteria of the award is clear, and where we are different as a matter of policy, we do not request any organisation to fund the Pearl Awards as a winner. And even after any company emerges, we do not ask for money. That is why we are able to publish all the empirical analysis and indices including facts and figures of every company that emerges. And I must say this, you could support the award without being nominated.
What are the requirements for companies to be nominated in the Pearl Award?
I must say the qualification is that the companies are quoted in the annual stock exchange with returns and have their annual meeting, so we access stock exchange, we access the capital market registrar and the annual financial report.
-DAPO ADESEKO
