Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Innovation | Article
9 December 2019 - Returns to successful R&D can be transformational for an organization and for the broader society in which it operates.
Risk and Resilience | Article
11 November 2019 - FCLTGlobal's process for developing tools to address long-term investment risk includes interviewing risk management experts.
Policy and Geopolitics | Article
31 October 2019 - Updates widen scope to span asset classes and geographies, and increase focus on activities and outcomes of stewardship
Policy and Geopolitics, Metrics | Article
25 October 2019 - The U.S. Securities and Exchange Commission has proposed amendments to corporate disclosures to include tangible measures human capital objectives.
Policy and Geopolitics | Article
26 September 2019 - Representatives from FCLTGlobal were delighted to participate in the European Securities and Markets Authority’s (ESMA) workshop on short-termism, held in Paris on 16 September 2019. ESMA’s work on short-termism followed a Call for Advice issued by the European Commission to develop a report presenting the evidence and possible advice on potential undue short-term pressure on corporations. The workshop was a series of structured segments based on research and evidence gathered by ESMA staff: investment strategy and investment horizon; disclosure of environmental, social and governance (ESG) factors and the...
Incentive Alignment | Article
23 September 2019 - “You get what you pay for.” When it comes to executive pay, the old adage holds true. Companies’ compensation committees typically evaluate their CEOs, like any employee, based on performance benchmarks, and like every employee CEOs will work to hit the benchmarks they are measured against. Because incentives drive behavior, poorly designed incentives can precipitate poor choices. Recent studies have shown that such benchmarks, and corresponding compensation packages, are incentivizing short-term decision-making at many of today’s public companies. To dig deeper into the issue and workshop possible...
Governance | Article
16 September 2019 - Corporate boards are vital in helping companies maintain a longer-term focus while executing on shorter-term priorities. The board’s position atop the organization gives directors a wide perspective on a company’s current path, and allows them to shape its future by influencing purpose, culture, and direction. In The Long-term Habits of a Highly Effective Corporate Board, FCLTGlobal identified a number of steps directors can take to maximize their impact on the companies they oversee, one of which involves aligning directors’ interests with those of the company. Translating this intent...
Policy and Geopolitics | Article, Press Release
19 August 2019 - FCLTGlobal commends the Business Roundtable and all 181 CEOs that have signed on to today’s Statement on the Purpose of a Corporation. Research shows that creating long-term value is a critical part of a chief executive’s role, for a company’s shareholders but also for the many other stakeholders in its investment value chain – employees, customers, or the community in which it operates. It is important to clarify this responsibility, especially in a rapidly evolving global economy where businesses are looking for new ways to...
Policy and Geopolitics | Article
25 July 2019 - On 18 July, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance held a public roundtable to hear from investors and other market participants about the impact of short-termism on capital markets and whether its reporting system, or other aspects of its regulations, should change to address these concerns. View the full webcast of the roundtable here The first panel of the afternoon addressed the root causes and impact of a short-term focus on capital markets, and sought to help the SEC identify potential market practices and...
Risk and Resilience | Article
9 July 2019 - On 30 May, FCLTGlobal Members and guests met in Boston for a peer-to-peer discussion on managing risk to support long-term value creation. The Forum on Risk: A Balancing Act provided a venue for participants to exchange examples of multi-horizon risk management, including successes in practical applications and challenges with implementation.
Article
4 June 2019 - The expertise and rich experience of FCLTGlobal’s researchers is part of what makes our work unique and incisive. A prime example is Senior Research Fellow Bruce Shaw, the former CFO of Holly Corporation (later President of Holly Energy Partners) who is working on a study of long-term thinking among CFOs and assembling a checklist CFOs can use to ensure they stay focused on long-term success. Our Director of Research Communications, Evan Horowitz, sat down with Bruce to talk about his work and life. Hi Bruce. Thanks for much...
Governance | Article
28 May 2019 - Building a long-term culture requires a clear and active commitment from a company’s leadership, as they have the unique stature to establish long-term strategies and support long-term initiatives throughout the organization. Long-term Habits of a Highly Effective Corporate Board, FCLTGlobal’s latest research on how corporate board’s impact company performance, identifies several established practices boards can employ in order to develop and eventually realize a farsighted strategic plan. These include: spending more time on strategy (regulatory and compliance-related tasks often consume significant board attention); holding company stock...