Partner & Associate Director
Hady Farag is a core member of the Corporate Finance & Strategy practice at Boston Consulting Group. He is an expert for corporate strategy and shareholder value and, since 2006, has worked extensively on these topics with clients around the world in various industries including technology, health care, transportation and logistics, and consumer goods.
Hady has led many engagements covering capital allocation, investor insights, and total shareholder return (TSR) strategy (including portfolio strategy, strategic planning). He has helped clients implement capital market strategies, responses to activist attacks, and transformative value creation roadmaps. He also has advised clients on acquisitions and divestitures, strategic alliances, and corporate venturing.
He is co-author of the BCG Value Creators report series and the annual BCG Investor Survey as well as various other BCG publications.
In a rough year for markets, telecom operators held up comparatively well, despite continuing to face some fundamental challenges, while infrastructure companies cooled considerably.
Corporate leaders have a pivotal role in bridging the divide between institutional sustainability commitments and day-to-day investing practices.
Reversals in total shareholder return (TSR) performance since the start of the year have hit innovation-driven industry sectors such as technology, medical technology, financial infrastructure, and green energy especially hard.
Demand for semiconductors and software pushed the tech sector’s five-year total shareholder return higher than that of any other industry.
The surging popularity of streaming services, gaming, and digital and social media over the past two years added to the industry’s substantial shareholder returns.
The technology, media, and telecommunications sector outperformed many other industries in total shareholder return, led by a strong showing in tech.
Infrastructure players and telcos are forging different paths to create shareholder return, but both sectors are automating, modernizing, and adopting digital throughout their operations.
The pandemic’s effects have widened the gap between leaders and laggards in value creation.
Players that shift from centralized conventional generation toward a more distributed and digital approach are likely to become the next decade’s value creation leaders.
Companies’ transformation track records are mixed. Top performers unlock value quickly by focusing on changes that will improve profit margins and valuation multiples.
For now, corporate sustainability spending may be curtailed. But investors believe that in the long run, ESG will remain a powerful driver of portfolio performance.