Tag: short-termism

Business leaders issue warning on governance rules and sustainability
Without the European Commission’s reforms, governance systems “will act as countervailing forces against achieving sustainability objectives”.

Harvard experts slam EU report on long-term strategic thinking
European Commission study contains “deep flaws”, conflates key factors and “touts cures” that could be “counterproductive”, academics warn.

EU urges firms to focus on long-term strategy over short-term goals
European Commission study finds shareholder pay-outs increased fourfold from 1992–2018, with a fall in the ratio of capex and R&D investment to revenues.

Investor focus on results and remuneration ‘creating friction’ with boards
The Investor Forum warns short-term issues are “crowding out real conversation about long-term strategic value and broader stakeholder perspectives”.

Five myths and five realities about the role of shareholders
There are many myths propagated by the populist debate over the purpose of the corporation in general, and the role of its shareholders in particular.

How the revised shareholder directive will help overcome short-termism
The EU’s amended Shareholder Rights Directive came into force in June 2017, and will be rolled out across member states by 2019. It aims to tackle short-termism among investors. But what are the law’s key elements?

UK’s draft new governance code has a social mission
This week saw the release of a new draft code for UK corporate governance. While many were distracted by measures on executive pay, the code’s real mission is social “injustices”, as highlighted by Theresa May last year.

South Africa needs a stepped-up approach to governance
With South Africa’s economy facing more tough times ahead, an increased focus on stewardship is vital. King IV should be used as a platform for good governance practices, argues Robert Lewenson.

Directors must do more to restore public trust
If business is to restore public confidence and trust, then responsibility must fall with directors to communicate with society beyond company reporting, argues Irena Prijović of ecoDa.

Sustainable Finance report: implications for investors and directors
Reform of the financial system towards a sustainable economy has been detailed in an EU report, whose recommendations—which draw upon corporate governance reform—impact upon fiduciary duties in varying degrees.