Our concerns about Comcast go back a long way. Our predecessor company, The Corporate Library (now GMI Analyst, a part of MSCI), we gave Comcast and its board a rare F rating for catastrophically poor corporate governance. If there was a lower grade than F, we would have given it to them. And if we were still grading…
Dual share structures could erode accountability at the top | Financial Times
George Dallas writes about the possibility of loosening restrictions on dual class stock in the UK. We only disagree with one point — he says it is “ironic” that this is being considered just after the adoption of the robust new UK stewardship code that is the new standard other jurisdictions should aspire to. It…
Accounting for Climate: The Next Frontier in ESG | S&P Global
As more and more companies and investors conclude that sustainable practices make for sustainable returns, the assessment of corporations’ environmental, social, and governance (ESG) footprints has moved from a simple measure of corporate responsibility to an investment proposition. While this general focus on ESG policies is undeniably beneficial, companies today are presented with the additional…
Why America’s CEOs Are Talking About Stakeholder Capitalism by Mark Roe – Project Syndicate
[T]wo deeper forces help to explain why the Business Roundtable felt that it needed to say something now. First, activist shareholders are making life uncomfortable for the boards and senior executives of America’s largest corporations. The Business Roundtable’s statement is thus in part a plea from CEOs for more autonomy vis-à-vis shareholders. In effect, the Roundtable’s…
Kingsdale Advisors on the SEC Proxy Proposals
Amy Freedman, Michael Fein, and Ian Robertson, of Kingsdale Advisors write: Anecdotally, at Kingsdale, we know, from our conversations with shareholders and from witnessing the expansion of in-house governance teams, that shareholders are taking back the decision-making process (to the extent it ever really left) as governance is increasingly seen not only as a risk…
Women Don’t Mean Business? Gender Penalty in Board Appointments | Academy of Management Proceedings
These troubling but not definitive findings suggest that the market is skeptical about female board members regardless of their credentials. We note that previous studies have shown that two or more female directors are necessary to make a difference. Using 14 years of panel data on U.S. firms, we show that the addition of a…
Tracking SEC’s Evolving Approach to ESG Disclosures
The SEC is moving—slowly—toward including environmental, social, and governance (ESG) disclosures in public company filings. Although the U.S. House of Representatives’ Financial Services Committee in July 2019 rejected a bill that would have aligned ESG reporting standards closer to those found in the EU and required climate change risk factor disclosures, ESG is an issue…
CBS Chief Will Get $100 Million Severance and Still Keep His Job – Bloomberg
CBS Corp. acting Chief Executive Officer Joe Ianniello is in line for a hefty haul when Viacom Inc. completes its proposed merger with the broadcast network. While he won’t get to lead the combined entity, he’ll collect $100 million severance and remain chief of CBS with a new contract entitling him to tens of millions…
Costco Will Report on Prison Labor – Corporate Governance
Jim McRitchie reports: Costco will report on prison labor in its supply chain, such as pajamas from China, making it if the first U.S. company to make a public commitment to disclose known instances. Many thanks to NorthStar Asset Management for negotiating the agreement. via Costco Will Report on Prison Labor – Corporate Governance
Capitalism Is a Blessing — IQ2US Debates
The IQ Squared Debate series has experts debate today’s the most complex and hotly contested topics. Coming: Is what we get from capitalism worth what we pay for it? We will post a recording of the debate as soon as it is available. Recent polls show that two out of three Americans support capitalism. But…
