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		<title>Davos: Seven years later</title>
		<link>https://igopp.org/en/davos-seven-years-later/</link>
		<comments>https://igopp.org/en/davos-seven-years-later/#respond</comments>
		<pubDate>Thu, 09 Feb 2017 21:10:36 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[News Articles]]></category>
		<category><![CDATA[Publications ]]></category>
		<category><![CDATA[Corpgov.net]]></category>
		<category><![CDATA[Ethics]]></category>
		<category><![CDATA[Executive compensation]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[Value-creating governance]]></category>
		<category><![CDATA[World Economic Forum]]></category>

		<guid isPermaLink="false">https://igopp.org/?p=7211</guid>
		<description><![CDATA[There is a Chinese proverb that says He who knows he has enough is rich; but the modern Western version of the saying seems to be: One never has enough; I deserve more; or There is always someone who has more. Over the last years, we have built a system of incentives and motives so [&#8230;]]]></description>
		<content><![CDATA[There is a Chinese proverb that says He who knows he has enough is rich; but the modern Western version of the saying seems to be: One never has enough; I deserve more; or There is always someone who has more.

Over the last years, we have built a system of incentives and motives so powerful that it overwhelmed values. Ethics is the resistance of values under pressure. But there is a breaking point. Enough pressure will grind values down. Heroes and saints do what they think is right whatever the costs and consequences for them. Most mortals, mes semblables, mes frères, dirait Baudelaire, are suspended in webs of motives and meanings they themselves have spun. We must understand how we have come to spin this web and learn to spin a new one.

There is something special about this panel. I am surrounded by representatives of very successful organizations: a banking cooperative (Grameen Bank), a professional partnership (Deloitte), a faith-based transformational organization (Sojourners), a large family-owned company (Bettersman); a publicly listed corporation with a stable network of shareholders (Takeda Pharmaceuticals); a publicly listed corporation with a controlling shareholder (Thomson-Reuters).

As I am sure my fellow panelists will testify, in all these organizations, values of trust and loyalty as well as a long-term perspective are alive and well. But what, or who is missing at this table? Precisely, the most prevalent type of corporations in several countries; that is:

 	Stock exchange listed corporations ‘owned’ by a large number of ever-changing, transient funds, many with short-term performance goals as well as a bunch of share-flippers (the average holding period of shares of companies listed on the NYSE or NADAQ is now some 7 months);
 	Governed by directors who are thoroughly ‘independent’ but often lack legitimacy and credibility;
 	Managed by a mobile executive class motivated by stock options and other compensation schemes to work exclusively for these short-term shareholders;
 	Surrounded by speculators, hedge funds and various financial operators free to play all sorts of lucrative games with the company’s shares and debt.

Read more [1]

[1] http://www.corpgov.net/2017/02/yvan-allaire-world-economic-forum-davos-2010/]]></content>
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		<title>Yvan Allaire: Shareholder Activism and Long-Term Value</title>
		<link>https://igopp.org/en/yvan-allaire-shareholder-activism-long-term-value-2/</link>
		<comments>https://igopp.org/en/yvan-allaire-shareholder-activism-long-term-value-2/#respond</comments>
		<pubDate>Sat, 20 Dec 2014 00:56:28 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[IGOPP in the Medias]]></category>
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		<category><![CDATA[Activism]]></category>
		<category><![CDATA[Corpgov.net]]></category>
		<category><![CDATA[Hedge funds]]></category>
		<category><![CDATA[Stakeholders]]></category>

		<guid isPermaLink="false">http://igopp.org/yvan-allaire-shareholder-activism-long-term-value-2-2/</guid>
		<description><![CDATA[In case you missed it last weekend, Donna Dabney, Executive Director of the Governance Center at The Conference Board posted this November 14th presentation by  Dr. Yvan Allaire presented at the Annual Meeting of The Conference Board Governance Center. His talk was titled Do activist interventions create long term shareholder value? Allaire reviews a lot of studies and [&#8230;]]]></description>
		<content><![CDATA[In case you missed it last weekend, Donna Dabney, Executive Director of the Governance Center at The Conference Board posted this November 14th presentation [1] by  Dr. Yvan Allaire [2] presented at the Annual Meeting of The Conference Board Governance Center. His talk was titled Do activist interventions create long term shareholder value?

Allaire reviews a lot of studies and basically disputes the contention that activist interventions lead to long-term shareholder value. While I find his arguments compelling, what we really need in research going forward is much more nuanced than what his overview provides. Yes, I yield to the point that most shareholder activism doesn’t move in the direction I would like. For example, transferring wealth from employees and debt holders to shareholders only aggravates wealth disparity. Agreed – reducing cash, investment and R&#38;D seem more likely to the hurt long-run prospects of a company.  Read more [3]

[1] http://tcbblogs.org/governance/2014/12/12/do-activist-investors-create-long-term-shareholder-value/
[2] http://www.conference-board.org/bio/index.cfm?bioid=4088
[3] http://corpgov.net/2014/12/yvan-allaire-shareholder-activism-long-term-value/?utm_source=feedburner&#38;utm_medium=feed&#38;utm_campaign=Feed%3A+corpgov%2FesYs+%28CorpGov.net%29]]></content>
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