On Governance: How the SEC can Help Mitigate the ‘Proactive’ Agency Costs of Agency Capitalism
March 08 | Bernard Sharfman, Associate Fellow, R Street Institute | Comments (1)
The proactive agency costs generated by mutual fund advisers that hold large concentrations of delegated voting power can be partially mitigated by the SEC.
On Governance: The Biggest and Most Dangerous Risk CAEs and CROs Don’t Want to Report to Boards
February 25 | Tim Leech, Managing Director, Global Services, Risk Oversight Inc. | Comments (0)
The author believes the biggest risk nobody seems to want to talk about is that a very large percentage of companies’ management personnel lack the necessary skills and/or motivation to competently self-assess and report on the true state of risk related to value creation and preservation.
On Governance: How the Shift from Monocapitalism to Multicapitalism Creates Integral Value
February 20 | Keith Ambachtsheer, Founder, KPA Advisory Services | Bill Baue, Senior Director, Reporting 3.0 | Comments (1)
Integrated reporting expands traditional thinking, with its predominant focus on financial capital (i.e., monocapitalist), by casting a wider net to assess how value is created across multiple capitals (i.e., multicapitalist).
On Governance: Using Sustainability Metrics in Incentive Compensation Plans
February 15 | Arthur H. Kohn, Partner, Cleary Gottlieb Steen & Hamilton LLP | Comments (0)
Recent developments concerning corporate sustainability suggest that compensation committees of public company boards of directors, as well as human resources executives, should consider the use of metrics developed to measure sustainability in incentive compensation plans.
On Governance: How Integrated Reporting Helps Define and Measure Value
February 13 | Keith Ambachtsheer, Founder, KPA Advisory Services | Bill Baue, Senior Director, Reporting 3.0 | Comments (0)
How do asset owners tell their multi-dimensional value-creation story in ways that go beyond simplistic price signals which might mask value destruction, particularly at the collective level? By adopting Integrated Reporting (or IR as it is commonly abbreviated), we believe.
On Governance: Do You Know Who Your Shareholders Are?
February 07 | Eileen R. Cohen, Managing Director, J.P. Morgan Asset Management (Retired), Senior Fellow, Governance Center | Comments (0)
In this heightened environment of activism, quantitative investing and shorting, understanding who owns your company and why and even more importantly which firms do not own the stock is information that company management and the board should have in their arsenal.
On Governance: How do you Build Trust? One Marble at a Time
February 05 | Cindy Fornelli, Executive Director, Center for Audit Quality | Comments (0)
There are massive institutions, entities, and laws designed to foster trust in the markets. One of those entities is the public company auditing profession itself.