The Annual Businessuite Skin Index seeks to measure and gauge the extent to which Businessuite Top 50 CEO’s who run Businessuite Top 50 & 100 Companies use their own money to buy stock in the company they are running and if they are managed by like-minded individuals who share a stake in the company.
Skin In The Game is a term coined by renowned investor Warren Buffett referring to a situation in which high-ranking executives and insiders uses their own money to buy stock in the company they are running.
“We like to see the people who run businesses showing confidence in them by committing their own capital. And directors are well aware their trading is closely watched by investors, so they often buy stock when they’re allowed to.”
The 2018 Index is based on the following:
Main Stock Exchange Last trading price for 2017
Central Bank US$ selling price as at 30/12/2017
Jamaica shareholdings based on September 2017 quarterly financials
Trinidad and Barbados shareholdings were not included this year as the changes in holdings are not as dynamic as Jamaica and have largely remained unchanged.
Where noted connected party holdings are included
“Investors like to watch what the directors and executives in leadership positions of stock market-listed companies are doing with their own money. The theory is that – regardless of any dealing restrictions – these people are in the best position to judge how well, or otherwise, their business is faring. So presumably their personal trading must be a handy guide to where the shares are heading next.”
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