Kokkinis and Sergakis – A Flexible Model for Efficient Employee Participation in UK Companies by Andreas Kokkinis & Konstantinos Sergakis, 17 Feb 2020 (download), provides several insights that may be helpful in guiding US efforts as well. As mentioned in my coverage of the recent SHARE Summit, #SHARE2020, I am investing in public companies with employee ownership. […]
Peter Georgescu’s Capitalists Arise!: End Economic Inequality, Grow the Middle Class, Heal the Nation correctly identifies short-termism and a focus on stock price as a problem contributing to growing wealth inequality. His solutions depend on enlightened managers and boards to transform how America does business by taking all stakeholders into account, not just shareholders. I say, don’t […]
Two research papers that have the potential to reshape investor thinking on the detrimental impacts of short-termism by investors have won the Investor Responsibility Research Center Institute (IRRCi) annual investor research competition. The winners were presented at the Columbia Law School’s 2016 Millstein Governance Forum, Governance, Leadership and the Future of the Corporation, in New York City. […]
Purpose, Use, Potential Misuse of Stock Prices in Public Equity Market Deadline for Proposals: November 15, 2013 Author Presentation of Findings: September 19, 2014 The Investor Responsibility Research Center Institute & The Millstein Center for Global Markets and Corporate Ownership have initiated a joint effort to better understand the purpose, use and potential misuse of stock prices in […]
Holly Gregory’s post Applying Securities Laws to Social Media Communications is the best I’ve seen on when the SEC’s Enforcement Division is likely to recommend an enforcement case to the Commission based on the potential for liability arising from disclosures by corporate officers through social media. As widely reported, including by WSJ, Netflix and CEO Reed Hastings both received Wells Notices from […]
‘Quarterly capitalism’ desperately needs tempering with long-term guidance This guest post by Mindy S. Lubber originally appeared in Pensions & Investments on Jun 25, 2012. (more…)
“Although short-termism may be fueled by investor pressure, it’s equally true that investors select companies for their time frames,” according to recent research by Francois Brochet, George Serafeim, and Maria Loumioti published in the Harvard Business Review. (more…)
C-SPAN will broadcast the tax fairness panel discussion at noon today (Eastern). Here are two ways to get in the loop from afar: (more…)
Unless current shareowners suffer a penalty for having CEOs who engage in earnings manipulation and insider trading they are likely to encourage such unethical and damaging behavior, finds a study by Ramy Elitzur, since choosing less ethical managers may be in the best interests of current shareholders, but not future ones. Many accountants believed that markets are efficient […]
Great to see Jon Lukomnik, managing partner of Sinclair Capital, now blogging at The Mind of an Institutional Investor, and now added to our blogroll. Lukomnik’s first two topics are Debunking Myths About ISS and Irrational Short-Termism in Investing. One of Lukomnik’s arguments with regard to ISS is that they are as much a follower […]
UK’s Secretary of State for Business, Vince Cable, launched a consultation into corporate governance and whether failures in that process are stoking a trend for short-termism in investment that damages the long term interests of companies and many of their investors. The consultation will examine allegations that publicly quote companies are being run in order […]
Annual elections of directors, do they ensure accountability to shareowners or encourage companies to concentrate too much on short-term returns. I was surprised to read the following in Responsible Investor (UK: stewardship elusive as pension funds buck governance code, 7/21/10): Hermes, Railpen and the Universities Superannuation Scheme – with combined assets of £106bn (€126bn) – […]
What’s the difference between the role of advisors and a board of directors for a start-up? At what point in your development should you build each group? Tips for creating an Advisory Board or Board of Directors: choosing the right people, defining objectives and expectations and compensation issues (i.e. What’s in it for them?) Common […]
Gary Larkin, who blogs for the Conference Board, did a great interview Q&A With Martin Lipton and Richard Ferlauto: Short-termism. (12/09/09) Here’s a snippet on the question, Do you think short-termism played a role in the destruction of long-term shareholder value: Lipton: Absolutely. Short-termism resulted in financial services companies taking undue risk, more so than […]