How’s the CEO ‘Stakeholder Pledge’ Working Out? Depends Who You Ask – WSJ

VEA Vice Chair Nell Minow is quoted in this WSJ column by John Stoll about the BRT’s stakeholder rhetoric.

Nell Minow, vice chair of ValueEdge Advisors, which consults with institutional investors on corporate governance, agrees with Mr. Bebchuk about tradeoffs, but she cautions “those tradeoffs are rarely permanent.” She said directors need to push executives to weigh long-term risks and reward them for making moves that ultimately pay off. She pointed to Costco Wholesale Corp., which has thrived during the pandemic as people stuck at home need more groceries and household products. Costco’s stock is trading near an all-time high, but Ms. Minow said it’s not just a matter of being in the right place at the right time. Costco’s attention to more than just shareholder interests paid off: The warehouse club was paying employees premium wages before its competitors were forced to raise their hourly pay to attract and keep workers during the pandemic. Costco’s pay policies fuel high worker-retention rates, which undergird the warehouse-club’s resilient business model.

How’s the CEO ‘Stakeholder Pledge’ Working Out? Depends Who You Ask – WSJ

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