Corporate/Investor Engagement Resources
Through the work of the task force and advisory board, the task force has identified numerous resources relating to corporate/investor engagement. Below are some of the resources that the task force found most relevant and helpful.
Long-Term Value Creation: Guiding Principles for Corporations and Investors
June 2010 | The Aspen Institute
Long-Term Value Creation: Guiding Principles for Corporations and Investors, a.k.a. the Aspen Principles, are explicitly written as aspirational guidelines for good business practice. In subscribing, and moving over time to implement these outcome-oriented principles in their own organizations, operating companies and investors are leading by example and taking a stand that a long-term focus is critical to long-term value creation.
Capitalism for the Long Term
March 2011 | Harvard Business Review
As the current financial crisis and the Great Recession begin to ease, executives may be tempted to heave a sigh of relief and return to the comfort of business as usual. But doing so would constitute a serious mistake for their companies-and a grave disservice to capitalism itself, argues Dominic Barton, the global managing director of McKinsey & Company.
Are Institutional Shareholders Part of the Problem or Part of the Solution:
Key Descriptive and Prescriptive Questions About Shareholders’ Role in U.S. Public Equity Markets
October 2011 | Committee for Economic Development & Millstein Center for Corporate Governance
and Performance, Yale School of Management
This paper poses the essential question: are shareholders part of the problem with modern capitalism or part of the solution? The answer, invariably, will be complex and nuanced, without a simple, single conclusion. But, in so effectively laying out the need for an informational foundation, this essay takes a vital step towards finding answers, either through public policy or private ordering.
The Kay Review of UK Equity Markets and Long-Term Decision Making
July 2012 | United Kingdom Department for Business Innovation & Skills
The review’s principal focus is to ask how well equity markets are achieving their core purposes: to enhance the performance of UK companies by facilitating investment and enabling effective governance and decision making in support of long-term profitability and growth; and to enable investors to benefit from this corporate activity in the form of returns from equity investment.
Bridging Board Gaps: Report of the Study Group on Corporate Boards
July 2012 | Columbia Business School & John L. Weinberg Center for Corporate Governance,
University of Delaware
Recent institutional failures, surrounded by general economic turmoil, once again sparked the familiar question: Where were the boards? Although the root causes of the financial crisis went well beyond governance, boards have been a focus of many reforms. This study group paper seeks to provide new routines boards can adopt (and adapt) to improve the way they operate.
Whose Capital; What Gains?: Why the U.S. Economy Needs to Change Incentives
July 2012 | The Brookings Institution
If we fail to change the incentive structures of American management and financial markets, our nation’s long-term economic well-being and, with it, our national security, will suffer, writes Lawrence Mitchell. The crisis was decades, and perhaps more than a century, in the making, and is the result of many different factors that can be found in the historical record.
Letter to the SEC on Concept Release on the U.S. Proxy System
August 2012 | Exxon Mobil Corporation
In this comment letter to the U.S. Securities and Exchange Commission on the Concept Release on the U.S. Proxy System, Exxon Mobil's Vice President - Investor Relations and Secretary, David Rosenthal, makes the case for transparency and oversight of proxy advisers.
Preserving Balance in Corporate Governance
January 2013 | Weil, Gotshal & Manges LLP
In their annual reflection on corporate governance, Ira Millstein, Holly Gregory, and Rebecca Grapsas offer thoughts on the need to preserve the balance between board and shareholder responsibilities to enable companies to maintain focus and efficiently create sustainable long-term value for shareholders.
Focusing Capital on the Long Term
January 2014 | Harvard Business Review
Since the 2008 financial crisis and the onset of the Great Recession, a growing chorus of voices has urged the United States and other economies to move away from their focus on “quarterly capitalism” and toward a true long-term mind-set. This article by Dominic Barton and Mark Wiseman lays out an approach to make that happen.
The SDX Protocol
February 2014 | SDX
The Shareholder-Director Exchange Protocol (SDX Protocol) offers guidance to public company boards and shareholders on when director shareholder-director engagement is appropriate, and how to make these engagements valuable and effective.