Ann: Change of Director's Interest Notice, page-3

1.  Investing

With Skin in the Game:

• A fund manager invests a significant portion of their own money in the fund they manage.
• It shows they believe in their strategy and will lose money if they perform poorly.

Why it matters:

• Aligns interests with investors.
• Reduces reckless risk-taking.
• Builds trust.

Without Skin in the Game:

• A manager gets paid fees regardless of performance.
• Can encourage short-term thinking or taking unnecessary risks.

Example: Warren Buffett only invested in companies where executives had their own money on the line — he avoided “no-risk” leadership.





2. Business & Management

With Skin in the Game:

• A startup founder takes a lower salary but owns a big equity stake.
• A CEO holds a significant number of company shares.
• Leaders make policies they personally follow (e.g. cost-cutting that affects them too).

Why it matters:

• Encourages long-term thinking.
• Boosts morale — employees see leadership sharing sacrifices.
• Reduces hypocrisy.

Without Skin in the Game:

• Executives get bonuses while cutting jobs or underperforming.
• Leaders make rules for others that they don’t follow themselves.