The TakeAway: Bob Monks believes new corporate governance reforms fall short, but digital tools can help advance accountability goals.
Robert A.G. Monks has a long history of pioneering work on corporate accountability. From his tenure as first Department of Labor pension administrator (ERISA) during the Reagan administration, to his controversial 1991 campaign for a seat on the board of Sears, Roebuck, to co-founding (with Nell Minow) Institutional Shareholder Services (ISS) in 1985, to co-founding LENS (1991), The Corporate Library (1999), and co-authorship (with Minow) of the foundation text, Corporate Governance (1985), as well as many related books, Monks has helped elevate corporate governance to the level of a profession.
We checked in with him about recent regulatory changes, and their implications. Continue reading →
Tweet This Post
Posted in Corporate Governance, Corporate Sustainability, Interactive Technology, Investor Governance, Notable People, Proxy Voting, Public Policy, Stakeholder Engagement, Sustainable Investing, Web 2.0
|
Tagged beneficial owners, Bob Monks, CalPERS, Corporate Governance, ERISA, institutional investors, Institutional Shareholder Services (ISS), interactive technology, LENS, Nell Minow, proxy access, Robert A.G. Monks, Roebuck, Sears, SEC, The Corporate Library, trustee
|
The TakeAway: CEO pay rises highest at firms that lead in layoffs, says a new report – a bitter pill to swallow in hard times.
During this recession, there’s nothing like excessive CEO pay to get the blood boiling – particularly when viewed alongside widespread layoffs and the highest levels unemployment in decades (10.6 percent in January) . Yet that’s the reality the Institute for Policy Studies documented in its highly anticipated Annual Executive Compensation Survey, released yesterday. In its 17th year, the report (entitled CEO Pay and the Great Recession) identifies the 50 firms that laid off the most workers since the onset of the economic crisis in November 2008 –at least 3,000 workers at each through April 2010. The fifty top CEO “Layoff Leaders,” as IPS dubbed them, took home 42 percent more pay in 2009 – an average of $12 million –than their peers at S&P 500 firms, who pocketed an average of $8.5 million, according to an IPS press release. Pouring salt on the wounds, most announced these layoffs when reporting positive earnings. Continue reading →
Tweet This Post
Posted in Corporate Governance, Proxy Voting, Wage Gap
|
Tagged 99ers, CEO compensation, Dodd-Frank, Hewlett-Packard, Institute for Policy Studies (IPS), Joe Uehlein, Johnson & Johnson, Labor Network for Sustainability, Merck, proxy access, Sarah Anderson, Say-on-Pay, Schering-Plough
|
The TakeAway: The Africa Sustainable Investment Forum adds a new chapter to the history of using finance for social progress that started in South Africa.
Most people think the US-based divestment movement toppled apartheid in South Africa. The reality is more complex, as home-grown efforts in South Africa played a much bigger role than many people realize. I witnessed this influence on a trip to apartheid South Africa in October 1987 with peace entrepreneur Padraig O’Malley to interview almost two dozen labor leaders—such as Jay Naidoo, then president of the Congress of South African Trade Unions (COSATU). Supported by The Ford Foundation, the research goal was to identify how economic sanctions might help expand, rather than reduce, economic justice for victims of apartheid. One idea under quiet review: a “National Workers Trust” that linked corporate disinvestment to worker economic power. Eventually, a broad mix of actions – including selective purchasing by US states and cities, the withdrawal of Mobil and GM in 1988, and international oil sanctions that imposed a $2-3 billion tax on a $100 billion economy – combined to topple the apartheid regime.
Now, a project launched from South Africa builds upon the decades-long history of linking finance to social good, aimed at spreading sustainable investing throughout the African continent. Continue reading →
Tweet This Post
Posted in Corporate Sustainability, Sustainable Investing
|
Tagged AfricaSIF, apartheid, Congress of South African Trade Unions (COSATU), Development Bank of South Africa, economic sanctions, FIFA World Cup 2010, Ford Foundation, Global Alliance for Improved Nutrition (GAIN), Graham Sinclair, integrated reporting, Jay Naidoo, Johannesburg Stock Exchange, Padraig O'Malley, Responsible Investor, SinCo, South Africa, sustainability, XBRL
|
The TakeAway: The new Green Production Guide and longstanding Environmental Media Association help Hollywood pursue sustainability.
At last night’s Emmys, George Clooney received the Bob Hope Humanitarian Award for charitable work on behalf of disaster and terrorist victims—including those affected by tragic events in Haiti, Darfur, the Gulf Coast, and 9/11. In his acceptance speech, Clooney said that while everyone wants to help in the immediate aftermath of a disaster, the really hard part comes months later, when the story subsides but the experience lives on. “Here’s hoping that some very bright person right here in the room or at home watching can help find a way to keep the spotlight burning on these heartbreaking situations that continue to be heartbreaking long after the cameras go away,” he said. Continue reading →
Tweet This Post
The TakeAway: Companies and investors need to deal with natural disaster mitigation, resilience, and rebuilding efforts.
Five years ago this Sunday, Hurricane Katrina slammed into the Gulf Coast, where the wounds remain raw. Two years ago, Cyclone Nargis in Burma and the massive earthquake in China’s Sichuan province painted horrifying portraits of human suffering. Last week, on a visit to Pakistan’s flooded region, UN Secretary General Ban Ki Moon declared it a “slow motion tsunami”, warning of “destructive powers that will accumulate and grow over time”. Scientists at the World Meteorological Organization (WMO) called it the worst impact of climate change to date. Meanwhile, experts termed the stifling Russian heat wave the “the gravest in a millennium”, with conditions far from resolved. As disasters become the norm, the question arises: How prepared are we to respond effectively? The unfortunate answer: Not very. Continue reading →
Tweet This Post
Posted in Climate Change, Corporate Sustainability, Human Rights, Natural Disasters, Public Policy
|
Tagged Ceres, China, climate change, Copenhagen Climate Conference, Fritz Institute, Global Reporting Initiative, Haiti, Hurricane Katrina, Isaiah Funds, Munich Re, natural disasters, Pakistan, ProVention, Russia, Swiss Re, UN, Web 2.0
|
The TakeAway: New SEC rule allows shareholders to nominate board candidates, a major victory for corporate democracy.
Yesterday was historic: the SEC granted shareholders the power to nominate candidates for board director elections. The 3-2 vote along party lines ended years of debating this franchise, empowering shareholders holding at least 3 percent of a company’s stock for 3 years continuously. “Nominating a director candidate is not the same as electing a candidate to the board,” said Mary Schapiro, SEC Chairman. “I have great faith in the collective wisdom of shareholders to determine which competing candidates will best fulfill the responsibilities of serving as a director. To me, the critical point is that shareholders have the ability to make this choice.” Continue reading →
Tweet This Post
Posted in Corporate Governance, Proxy Voting, Public Policy
|
Tagged Business Roundtable, Council of Institutional Investors, Dodd-Frank, Harvard Law School Forum, James McRitchie, Les Greenberg, Lucian Bebchuk, Mary Schapiro, proxy access, Robert A.G. Monks, Rule 14a-11, Scott Hirst, SEC, Social Investment Forum, US Chamber of Commerce
|
The TakeAway: We can flip the equation of economic growth through environmental damage, to global prosperity through ecological healing.
Evidence of human assault on our fragile biosphere abounds this year: Pakistani floods and Russian drought and wildfire (all related to climate change); the BP oil spill; and on and on. On top of the immediate damage, these disasters create long-term threats to the ability of our world’s ecosystems and biodiversity to support life and abundance. To counteract them, a number of initiatives have sprouted to prove that natural limits can spur innovation and growth—and profitability.
The “Biosphere Economy” proposes to infuse natural capital considerations into economic activity, drawing upon insights that flow from ecosystems and biodiversity science. Some consider the Biosphere Economy a paradigm shift on par with the Industrial Revolution—with profound implications for business leadership, strategy, and operations. Continue reading →
Tweet This Post
The TakeAway: Flex your muscles, report tells investors, to get better environmental, social, and governance reporting (and practice) from companies.
What’s the secret to good corporate governance? Good investor governance. That’s why we were delighted by a recent report from the Canadian Institute of Chartered Accountants (CICA) that provides a practical guide for improving responsible institutional investor behavior. In light of tomorrow’s expected SEC action regarding proxy access, which promises to open the door for investors to nominate corporate board candidates, now is a good time to build an informed, engaged, and fully functioning institutional investor system—from public and corporate pension funds to mutual funds and investment intermediaries, and, most importantly, to endowments. (The latter are laggards.) The corporate / investor governance equation plays a particularly important role when it comes to advancing environmental, social, and governance (ESG) practices and reporting, the focal point of the CICA Discussion Brief. Continue reading →
Tweet This Post
Posted in Corporate Governance, Corporate Reporting, Investor Governance
|
Tagged Alan Willis, Canadian Institute of Chartered Accountants (CICA), Canadian Securities Administrators, endowments, ESG, fiduciary, institutional investors, integrated reporting, investor governance, Julie Desjardins, key performance indicators, proxy access, SEC, stock exchanges, UN Principles for Responsible Investment (PRI)
|
The TakeAway: Controversial corporate political spending spurs shareholder activism aimed at aligning company values with American values
With election season around the corner, today we question if our democracy, founded on the ideal of representing “We the People”, has been eclipsed by a government more beholden to “We the Moguls”—and look at ways to revitalize self-governance. George Packer’s recent New Yorker article on “The Empty Chamber” paints a depressing picture of how the Senate has devolved into petty obstructionism and servitude to corporate lobbyists. The January 2010 Supreme Court decision in Citizens United opened the door to unlimited corporate giving to political campaigns, resulting in controversial donations by Target, Best Buy, and News Corp (which recently gave $1 million to the Republican Governors Association). Continue reading →
Tweet This Post
Posted in Corporate Governance, Human Rights, Proxy Voting, Public Policy
|
Tagged Best Buy, Bruce Freed, Calvert Investment, Center for Political Accountability, citizen activism, Citizens United, George Packer, LGBT rights, News Corp, proxy access, self-governance, shareholder activism, Shelley Alpern, Target, Trilium Asset Management, Walden Asset Management
|
The TakeAway: New iPhone XBRL application opens new windows into financial reporting; next up: sustainability reporting.
Apple’s iTunes Store has joined the digital revolution in financial reporting. Yesterday, it rolled out a new offering – it wasn’t a song, movie, or audio book, but instead an iPhone application for XBRL – or eXtensible Business Reporting Language, which tags data, making it much easier to analyze and compare. Thanks to XBRL US Labs who supported its creation, you now can download a simple demonstration model of XBRL to your iPhone, and then access, search, and share information contained in public SEC disclosures submitted in the newly-required XBRL format—or X-filing. Continue reading →
Tweet This Post
Posted in Corporate Reporting, Interactive Technology, Public Policy, Web 2.0
|
Tagged Apple, Brix Project, Charlie Hoffman, crowd-sourcing, GRI, integrated reporting, iPhone, Johannesburg Stock Exchange, Liv Watson, SEC, Semantic Web, smartphone, taxonomy, X-filing, X-tagging, XBRL, XBRL International, XBRL US Labs
|
The TakeAway: Bob Monks believes new corporate governance reforms fall short, but digital tools can help advance accountability goals. 
