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Incentive Alignment | Toolkit

Matrix of Say-on-Pay Voting Policies – H-QTIP

26 September 2023 - This toolkit provides a structured framework for evaluating executive pay proposals through a long-term investor lens. Using the H-QTIP matrix, it highlights the governance, performance, and alignment factors that may support or oppose say-on-pay votes—helping investors assess whether remuneration structures reinforce sustained value creation and meaningful shareholder alignment.

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Incentive Alignment | Toolkit

Improve Long-Term Alignment Today

26 September 2023 - This toolkit outlines practical steps companies and boards can take to strengthen long-term alignment between executives, shareholders, and organizational strategy. Through clear “stop” and “instead” guidance, it highlights how compensation design, share ownership, and governance choices can better support sustained value creation and long-term decision-making.

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In the News

FCLTGlobal calls for fundamental shift in remuneration structures

26 September 2023 - Total shareholder return is the most common metric that shareholders employ to align interests, but it is often short term-oriented.

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Incentive Alignment | Report

The CEO Shareholder: Straightforward Rewards for Long-term Performance

26 September 2023 - Companies need to reward leaders who create long-term value, but focusing on short-term returns as the primary metric in remuneration design keeps companies stuck in short-term behaviors.

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Incentive Alignment | Toolkit

Computation and Interpretation of Pay Duration Indicator

26 September 2023 - This toolkit explains how to calculate and interpret pay duration as a way to assess whether executive incentives align with a company’s long-term strategy and investment horizon. By linking compensation structures to vesting, holding periods, and strategic timeframes, it provides a practical framework for evaluating how effectively pay design supports sustained value creation.

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Incentive Alignment | Toolkit

Draft Letter to Engage Investors on Pay Duration Misalignment

26 September 2023 - This toolkit explains how to calculate and interpret pay duration as a way to assess whether executive incentives align with a company’s long-term strategy and investment horizon. By linking compensation structures to vesting, holding periods, and strategic timeframes, it provides a practical framework for evaluating how effectively pay design supports sustained value creation.

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Risk and Resilience | Podcast

Going Long Podcast: OTPP’s Jonathan Hausman on Long-term Investing in a Changing World

12 September 2023 - OTPP's Jonathan Hausman joins the podcast to explore the firm's focus on long-term strategies and their perspectives on the ever-evolving global economy.

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Article

FCLTCompass: In 2022, Corporate Time Horizons Shorten, Investors’ Lengthen – And What It Means

By Allen He, CFA, FRM, Jessica Pollock

29 August 2023 - While the past year reflects a continued upward trend in investor horizons, it also revealed a material decline in investment horizons for corporates to their lowest since the project began.

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Investor-Corporate Engagement | Case Study

Bunge’s Focus on Long-term Strategies Helped Transform its Shareholder Base

9 August 2023 - Developing a committed shareholder base is crucial to long-term success. Companies with a longer-term-oriented shareholder base can rely on their long-term shareholders to insulate them from short-term pressures.

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In the News

ESG Investing – Green is the new Black

9 August 2023 - While we do not know where the long game will find these investments and some will be winners while other losers like with any risk investments, research from McKinsey Global Institute and FCLT Global showed that there is significant gain from focusing on long-term value and green investments of 47 per cent higher revenue growth and faster growing market caps.

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In the News

Viewpoint: Is long-term benchmarking realistic?

7 August 2023 - Instead of asking ‘what is a long-term model for investment benchmarks,’ we can ask ‘how many institutions view long-term benchmarking as practical?’

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Earnings Guidance | Article

A Look at Long-Term Guidance Trends in 2022

By Allen He, CFA, FRM, Michelle Mei

27 July 2023 - As we look ahead to earnings seasons in 2023 and beyond, companies that resist the temptation to issue quarterly guidance, and instead focus on issuing longer-term guidance and strategic roadmaps, will be setting themselves up for sustained success.

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