Philanthropreneurs: The New Breed of Billionaire

Strategic Insights -

Billionaires such as Ted Turner and Bill Gates have long been synonymous with philanthropy, but a new generation of philanthropreneurs is emerging, mixing altruism with investment savvy. These philanthropreneurs, including Virgin's Richard Branson, eBay founder Pierre Omidyar, and AOL co-founder Stephen Case, are investing in companies that make a positive impact on society while also generating a significant return. Unlike traditional philanthropists, who donate money without expecting a direct return, philanthropreneurs see their investments as a way to create both financial and social value.

Key Takeaways:

  • Pierre Omidyar has invested $US400 million in finance and technology companies that benefit local communities.
  • Stephen Case is investing $US250 million in companies that provide healthcare for low-income consumers.
  • Richard Branson is investing $US3 billion in companies seeking cleaner biofuels.
  • The top-earning Australian sports stars, including Adam Gilchrist and Shane Warne, now include seven members of the Ashes-winning cricket team, with Gilchrist earning $2.2 million.
  • The Horwath Report found that 32% of top-250 listed companies have a remuneration committee with a majority of internal or non-independent members.
  • The report also found that 37 companies received a five-star rating, while four were hit with the lowest one-star rating due to "serious corporate governance model flaws."
  • ASIC has obtained wind-up orders for winery Warrenmang, which may have failed to refund application money owed to subscribers to its planned IPO.
  • Progen, a biotech company, saw its share price drop 20 cents after a $20 million capital raising to fund the next series of trials for its liver cancer compound PI-88.

Statistics:

  • 32% of top-250 listed companies have a remuneration committee (Horwath Report)
  • 37 companies received a five-star rating (Horwath Report)
  • 4 companies received a one-star rating (Horwath Report)
  • $US400 million: amount invested by Pierre Omidyar (Source: Business Week)
  • $US250 million: amount invested by Stephen Case (Source: Business Week)
  • $US3 billion: amount invested by Richard Branson (Source: Business Week)
  • $2.2 million: annual earnings of Adam Gilchrist (Business Review Weekly)
  • 20% drop: Progen's share price (article)

Sources:

  • "The Philanthropreneurs" by Halley I. Cohen (Business Week)
  • Horwath Report (Corporate Governance Report)
  • Business Review Weekly (highest-earning Australian sports stars)
  • ASIC's wind-up orders for Warrenmang (Australian Securities and Investments Commission)
  • Progen's share price drop (article)