Performance Metrics: Accelerating the Stakeholder Model

When the Business Roundtable announced their “new” commitment to “stakeholders,” we said it was not meaningful unless we saw incentive compensation aligned to specific stakeholder goals. At the Harvard Law School Forum on Corporate Governance and Financial Regulation, Equilar research analyst Connor Doyle looks at current incentive plans tied to goals other than the traditional…

Interview With Ira Millstein — WSJ

One of the founding fathers and true visionaries of modern corporate governance is Ira Millstein. The WSJ asked him for his thoughts on the BRT’s stakeholder statement (he says it is not specific enough) and on the state of corporate governance today. An excerpt: In 1979, the Business Roundtable conducted a series of hearings and…

More Reactions to the Business Roundtable’s Stakeholder Statement

More reactions: From the always-thoughtful and insightful Doug Chia: Like the Commonsense Governance Principles (1.0 and 2.0), it’s not about what is being said, which we all know is nothing new (e.g., the J&J Credo was written in the 1943; my most recent boss at The Conference Board, Steve Odland, often says “‘CEO’ stands for…

Six Reasons We Don’t Trust the New “Stakeholder” Promise from the Business Roundtable

Originally published on the Harvard Law School Forum on Corporate Governance and Financial Regulation: A new statement from the Business Roundtable commits to stakeholder interests instead of making the primary purpose of the company shareholder value. Long-term shareholders are increasingly committed to explicitly ESG investing, which values stakeholder interests as a way to minimize investment…

Reactions to the BRT’s New “Stakeholder” Statement

This week Business Roundtable CEOs signed a statement committing vaguely to no longer making shareholder value their primary goal, and we expressed some skepticism and concerns. Some other reactions: Jay Coen Gilbert, Andrew Kassoy, and Bart Houlahan, founders of the B Corporation movement wrote in Fast Company: Ensuring that our capitalist system is designed to…

CEOs Adopt “Stakeholder” Goals: Business Roundtable

A new statement from the Business Roundtable commits to stakeholder interests instead of making the primary purpose of the company shareholder value. We have some concerns.  And a strong sense of deja vu. The last time the BRT was excited about stakeholders it was during the era of hostile takeovers, and a feint to the…

Sustainability Report | Embracing Sustainability Challenge | Business Roundtable

It is encouraging to see the members of the Business Roundtable challenging each other on sustainability. Business Roundtable CEOs are embracing sustainable practices across their businesses, resulting in stronger communities and a healthier environment. CEOs are leading the way through investments, innovation and strategic decisions, toward a more environmentally and economically sustainable future.  Source: Sustainability…