Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Investor-Corporate Engagement | In the News
1 July 2020 - FCLTGlobal CEO Sarah Williamson joins Yahoo Finance’s On The Move panel to address how activist investors are impacting markets.
Investor-Corporate Engagement | Report
25 June 2020 - The prevailing wisdom is that activist investors can drive corporate short-term behavior singlehandedly. The prevailing wisdom is wrong.
Investor-Corporate Engagement, Metrics | Video, Article
23 June 2020 -
Investor-Corporate Engagement, Governance | Article
30 April 2020 - Look after employees, customers, and suppliers; adopt a through-cycle mindset; and communicate transparently. Profits and dividends will come later if you make the right moves now.
Investor-Corporate Engagement | Report
15 April 2020 - While some companies take a “one share, one vote” approach to shareholder decision-making, others give disproportionate voting rights to founders or choose to offer multiple share classes, each with different voting power.
Investor-Corporate Engagement | In the News
14 April 2020 - With a growing list of companies suspending earnings guidance, FCLT Global CEO Sarah Keohane Williamson explains why quarterly guidance can be problematic.
Investor-Corporate Engagement | In the News
13 April 2020 -
Investor-Corporate Engagement | 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...
Investor-Corporate Engagement | Article
11 April 2019 - When considering going public, private companies often express concern about the perceived short-term fixation of public markets. In response, some choose to stay out of the public markets – to the detriment of our overall economic health. But other companies address this concern by issuing multiple classes of shares, each with different voting rights. Common practice is to assign more voting rights to one class of stock than the other, with the superior voting rights going to founders or other insiders. Issuing companies say that they take...
Investor-Corporate Engagement, Earnings Guidance | Article
5 April 2019 - Research has consistently found that the vast majority of corporate executives think that short-term pressure is changing their business decisions and harming long-term value. Recent work from FCLTGlobal has shown that an effective way to combat this phenomenon is by moving away from quarterly guidance. After calls from the White House and American business leaders in the latter half of 2018 to reexamine the standards for corporate guidance and reporting in American business, the U.S. Securities and Exchange Commission has requested public comment on how to enhance the investor protection attributes of periodic disclosures...
Investor-Corporate Engagement | Report
21 February 2019 - Roadmaps have a proven record at leading companies, and evidence suggests that the majority of investors (especially long-term investors) prefer this approach. By focusing on key elements of performance such as competitive advantages, long-term objectives, and a strategic plan matched with clear capital allocation priorities, companies can build buy-in among long-term investors who support a focus on long-term value creation. Survey after survey indicates that investors prefer forward-looking, long-term guidance around a company’s strategy and expected performance. This paper, which represents the collective effort and experience...
Investor-Corporate Engagement | Toolkit
21 February 2019 - Benefits of a long-term roadmap: Gives existing shareholders what they want Attracts long-term investors by using long-term language Acts as a deterrent or buffer against activist attacks More accurately shapes a company’s valuation Provides strategic clarity to internal audiences