Tag: short-termism

Is a proxy contest preferable to a quick settlement with activists? Some institutional investors think so

by Cydney Posner The obvious tension between the interests of long-term investors, such as institutional shareholders, and short-term investors, principally represented by hedge fund activists, has been the subject of much discussion of late.  Some observers have claimed, as argued in this NYT DealBook column, that the idea behind the financial […]

How did corporate boards become afflicted with economic ADHD?

by Cydney Posner A lot has been written about the impact of short-termism on the US economy. (See, for example, this PubCo post, this PubCo post and this PubCo post)  This post from The Harvard Law School Forum on Corporate Governance and Financial Regulation, “How Economic Attention Deficit Disorder Infected […]

Could disclosure avert a decline in investment in human capital?

by Cydney Posner Much attention has been paid to the decline in spending on R&D and capital investments attributed to short-termist myopia. Hedge fund activists have been impugned for pressuring companies to return capital to shareholders in the form of buybacks and dividends at the expense of funding R&D and […]

BlackRock CEO asks companies to provide board-approved strategic framework for long-term value creation

by Cydney Posner While Laurence D. Fink, co-founder and chief executive of BlackRock, has been decrying short-termism for a number of years, in his 2016 corporate governance letter to CEOs, he takes his advocacy a step further.  According to this DealBook column, the letter was sent to 500 chief executives late […]