FCLT Summit convened leading corporations, asset managers, and institutional investors for a series of working sessions aimed at critical topics surrounding the long-term growth of global capital markets, including:
- Climate change and investment decisions
- Investing in innovation
- The role of the board of directors in long-term strategy
- Rights and responsibilities of investors
- The impact of corporate compensation models on long-term performance, and more.
“FCLTGlobal’s mission is to make long-term decision-making the norm for companies and institutional investors worldwide, and broad adoption will only come when we lead by example. Our Summit participants are all well positioned to make that kind of change. By adopting the practical methods discussed today, which are focused on applying a long-term lens to projects and investments, we’ll be closer to achieving our goals,” said Mark Machin, FCLTGlobal Board Chair and President and CEO of CPP Investments.
Participants found consensus around several next steps for companies and investors, including a need for long-term oriented metrics for both companies and investors, an increased focus on corporate engagement with stakeholders – especially in an era of increased activism – and the evolution of the role of the corporate board. Those in attendance participated in an opinion poll to begin the day conducted by Harvard Business School professor George Serafeim. When asked “Which is the most effective lever to focus business on long-term value creation?”, 37% responded with “metrics that can communicate long-term value creation”; 35% responded “changing executive compensation incentives”.
“This event was the third Focusing Capital on the Long Term Summit. The first one recognized the impact of short-term thinking. Our 2018 Summit centered on exploring practical ways to improve long-term value creation. This year, our focus is on putting in place those practical actions that drive change,” said Sarah Keohane Williamson, FCLTGlobal’s CEO. “Our thinking in these areas has evolved significantly and, while there is still more work to do, we’re now able to move towards real implementation of these long-term ideas.”
In addition to interactive working sessions, the day included a CEO panel on sustainable capitalism, featuring Jim Fitterling (Dow), Adena Friedman (Nasdaq), Mark Machin, Paul Polman (IMAGINE, former CEO of Unilever), and Mary Schapiro (Bloomberg). The day concluded with a plenary session on investment in China, featuring Kewsong Lee (the Carlyle Group), Kevin Sneader (McKinsey & Company), Lei Zhang (Hillhouse Capital Group), and Nicolas Aguzin (J.P. Morgan).
A forthcoming report will feature a summary of the day’s discussion as well as a list of participants and speakers. Further information can be found at www.fcltglobal.org/summit.
FCLTGlobal is a non-profit organization that develops research and tools that encourage long-term investing. Our Membership is comprised of global asset owners, asset managers, and companies that play a leading role in rebalancing capital markets for sustainable growth. Please visit www.fcltglobal.org for more information.
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