Investor-Corporate Engagement, Incentive Alignment | Toolkit
28 September 2016 - This toolkit outlines ten essential elements that underpin a credible and effective long-term corporate strategy. From clarifying purpose and competitive advantage to aligning metrics, capital allocation, risk management, and incentives, it provides a practical framework for communicating how companies create and sustain long-term value.
Investor-Corporate Engagement | Report
16 March 2015 - Short-term behavior is becoming the norm in modern capital markets. Rather than pursuing and communicating long-term strategies, many public companies dedicate significant resources to meeting quarterly earnings guidance and communicating their performance relative to this guidance. This focus on short-term actions and communications seems counterproductive, considering that more than 50% of a typical company’s value is created by activities that will take place three or more years in the future. Research shows that the current emphasis on achieving short-term earnings targets leads to value destroying behaviours: One...