8 Mar 2017 | John Cassidy| The New Yorker
Thursday marks eight years since the low point of the last bear market on Wall Street. On March 9, 2009, the Dow Jones Industrial Average closed at 6,547.05. Since then, it has more than tripled. If you’d invested twenty thousand dollars in the Dow index eight years ago, it would now be worth about sixty-four thousand dollars.
The vast majority of the market’s gains came while Barack Obama was President, but since Donald Trump was elected the Dow has tacked on more than twenty-five hundred points, or about twelve per cent. Last week, it closed above twenty-one thousand for the first time, and we also saw the I.P.O. of Snap, the social-media company that owns Snapchat. At the end of Snap’s first day of trading, the market placed a notional valuation on the firm, which has always operated at a loss, of thirty-four billion dollars. “Since November 8th, Election Day, the Stock Market has posted $3.2 trillion in gains and consumer confidence is at a 15 year high. Jobs!” Trump boasted on Twitter. Read more
1 Mar 2017 | David Larcker, Taylor Griffin, Brian Tayan and Stephen Miles| Harvard Business Review
The New York Stock Exchange requires that the boards of all publicly traded corporations conduct a self-evaluation at least annually to determine whether they are functioning effectively. The purpose of the exercise is to ensure that boards are staffed and led appropriately, that board members are effective in fulfilling their obligations, and that reliable processes are in place to satisfy important oversight requirements.
Our research suggests that many board evaluations are inadequate. In a study of 187 boards we undertook with The Miles Group, a consulting and advisory firm, we found that most board evaluations fail to identify and correct poor performance among individual members. Only around half (55%) of companies that conduct board evaluations evaluate individual directors, and only around one-third (36%) believe their company does a very good job of accurately assessing the performance of individual directors. Read more
6 Mar 2017 | AICD - Australian Institute of Company Directors | Steven Cole | Business News
The annual general meeting has come under fire for not staying relevant in the contemporary corporate governance environment. Australian Institute of Company Directors Fellow Steven Cole suggests ways we could improve the AGM.
The 2016 annual general meeting season witnessed criticism and questioning of the underlying contemporary value of the annual general meeting (AGM) as a vital instrument of effective corporate governance. Read more
27 Feb 2015 | Joshua Kennon | The Balance
Making Money from Equity Investments Comes Down to a Handful of Principles
One of the benefits of living in the 21st century is the ability to look back over the past few hundred years and see what actually works when it come to investing in equities. Though the past cannot predict the future, there are certain themes that arise time and time again that hold the promise of lowering risk and helping intelligent stockholders make money, while simultaneously lowering risk.
Rooted in mathematics, the precepts sound overly simple but if you have the discipline, temperament, and resources to stick with them through thick and thin, sometimes experiencing years of declines at a time, you've grown very rich. Read more
28 Feb 2017 | Jamie Lee | The Business Times | Singapore
THE Code of Corporate Governance (CG Code) will come under review by a council, amid calls for companies to go beyond boiler-plate explanations.
The Monetary Authority of Singapore (MAS) said on Monday that a review of the CG Code and practices is "timely" to ensure that they continue to support sustained corporate performance and maintain investor confidence in Singapore's capital markets. Read more
27 Feb 2016 | Roger Trapp | ForbesOn both sides of the Atlantic disquiet about executive pay has become a pressing issue. Indeed, it has played an important part in the rise of Donald Trump in the U.S. and in the U.K.'s vote to leave the European Union. While little that Trump has proposed in his first weeks in power look like easing the situation - in fact, early indications are that the most wealthy will be even better off -- Theresa May wasted little time after becoming Prime Minister in pledging to reform corporate governance. And, while there have been criticisms from the usual quarters, the U.K. Government last November launched a consultation process that has just ended. Read more
22 Apr 2016 | theBoardlist
Many interests are represented within a board of directors: the CEO, founder(s) or other senior executives, venture capitalists or other big investors, and shareholders with large holdings. Ideally, each director should look out for the company above all other interests, but this may not always happen. Enter the independent director.
An independent director represents neither institutional investors nor the founders and can bring balance to a board. Below are five reasons why every board needs an independent director. Read more
24 Feb 2017 | Mark Eicker | Investopedia
The race to the bottom has been long and painful. Central banks have been fighting against each other to deflate their currencies faster than the rest of the world, hoping to export goods at deflated prices. Nine years have passed since the Great Recession, but little has changed in economic policy. The race to the bottom is alive and well in many parts of the global economy. Although that may have begun to change. The United States has raised interest rates twice over the past 15 months and anticipates raising them three times during 2017. Speculation regarding the Czech Republic is that it will abandon its currency ceiling and allow the koruna to appreciate. Is this the new race to the top? We don’t think so, but we do believe the dollar has begun to retreat. In the following paragraphs we will discuss the potential themes that we believe make emerging market equities attractive today. Read more
Feb 2017 | Dominic Barton, James Manyika, Tim Koller, Robert Palter, Jonathan Godsall, and Josh Zoffer
Our new Corporate Horizon Index provides systematic evidence that a long-term approach can lead to superior performance for revenue and earnings, investment, market capitalization, and job creation.
Corporate short-termism has been the subject of ongoing debate among leaders in business, government, and academia for more than 30 years, but hard evidence that short-termism genuinely detracts from company performance and economic growth has remained scarce. To fill this gap and better understand capitalism for the long term, we have created a systematic measurement of long- and short-termism at the company level. Our findings show that companies we classify as “long term” outperform their shorter-term peers on a range of key economic and financial metrics (exhibit). Read more
08 Sep 2016 | Gian Piero Cigna - Senior Counsel - Corporate Governance at the EBRD
This is one of the 34 Corporate Governance Reports recently completed by the EBRD to assess corporate governance legislation and practices in the EBRD region.
The reports have been prepared by looking at the relevant legislation and disclosed practices of the ten largest (listed - if a stock exchange exists) companies in each country. The analysis is divided in 5 sections: (i) Structure and Functioning of the Board; (ii) Transparency and Disclosure; (iii) Internal Control; (iv) Rights of Shareholders; and (v) Stakeholders and Institutions. These sections are further divided in sub-sections. Each section and sub-section is rated according to the methodology that is summarised at the beginning of each report. The rating is represented by colours. Read more
19 Jan 2017 | Dan Caplinger | Foxbusiness
Many retirees think that they should pull away from the stock market, mistakenly believing that the risks involved with stocks makes them unsuitable investments for a retiree's portfolio. Yet the fact is that with retirees living longer than ever, having stocks in your investment portfolio is almost a necessity if you want your retirement nest egg to provide enough growth to meet your financial needs for the rest of your life. Here, we'll give you five facts about stocks that every retiree needs to know. Read more
11 Jan 2017 | apnewsarchive.com
LONDON (AP) — The World Economic Forum says "rising income and wealth disparity" is likely to be the biggest driver in global affairs over the next ten years.
As well as reviving economic growth around the world, the WEF says there is a need to reform market capitalism to remedy fractures in society evident in a surge in anti-establishment populism around the world, most notably in the election of Donald Trump as U.S. president and Britain's vote to leave the European Union. Read more