Regional priorities for global governance reform and impact on US - - PowerPoint PPT Presentation

Regional priorities for global governance reform and impact on US capital markets

Wednesday 30th September Westin Copley Hotel, Boston

ICGN Boston Conference

• 1. What is the highest priority issue for investors in this year’s

proxy season?

a. b. c. d.

54% 7% 19% 20%

• a. Board composition
• b. Sustainability factors,

particularly climate change

• c. Executive compensation
• d. None of the above

Plenary 1: Global proxy season round-up and impact

• n US agenda.

Voting sponsored by:

• 2. Shareholders should be more transparent in disclosing

how they vote and how they use proxy advisory firms.

a. b. c.

78% 13% 9%

Plenary 1: Global proxy season round-up and impact

• n US agenda.
• a. Agree
• b. Disagree
• c. Agnostic

Voting sponsored by:

• 3. Companies should permit shareholders who have owned

3% or more of the company’s stock for at least 3 years to nominate up to 25% of the company’s directors.

Plenary 1: Global proxy season round-up and impact

• n US agenda.

a. b. c. d.

32% 10% 18% 40%

• a. Agree
• b. Prefer CII position calling

for 2 year holding and less than a majority of directors

• c. Disagree
• d. Agnostic

Voting sponsored by:

• 1. What is the best way to address concerns associated with

differential voting rights in investee companies?

Plenary 2: Differential voting rights – pros, cons and unintended consequences.

Voting sponsored by:

a. b. c. d.

31% 1% 49% 19%

• a. Engage with the Board

to seek protections

• b. Exclude the company

from stock indices

• c. Engage with regulators

to ban the practice

• d. No opinion

• 2. Should differential voting rights be abolished or firms with

them more tightly controlled?

a. b. c. d. e. 48% 20% 0% 29% 3%

Plenary 2: Differential voting rights – pros, cons and unintended consequences.

• a. Abolished entirely, the sooner

the better!

• b. More tightly controlled (eg, through

heightened disclosure and a conflicts committee) c. More tightly controlled (eg, by “ring fencing”: limiting them to certain companies only)

• d. Both “B” and “C”
• e. No opinion

Voting sponsored by:

• 3. Is it legitimate and sensible for governments to use

differential voting rights to promote “long-term investing”?

a. b. c.

17% 6% 77%

Plenary 2: Differential voting rights – pros, cons and unintended consequences.

• a. Yes
• b. No
• c. No opinion

Voting sponsored by:

• 1. Which would you prefer as the best way to handle a market

failure with corporate governance dimensions?

a. b. c.

32% 56% 12%

Plenary 3: The case for governance best practice codes in a US context.

• a. Fresh law at state or

federal levels

• b. Private ordering
• c. Voluntary agreement on

remedial steps by market parties

Voting sponsored by:

• 2. Which party do you think is today most influential in setting de

facto standards of corporate governance best practices in the US?

Plenary 3: The case for governance best practice codes in a US context.

a. b. c. d.

18% 37% 5% 40%

• a. Corporations
• b. Investors
• c. Government bodies
• d. Proxy advisors

Voting sponsored by:

• 3. Do you agree that investor confidence in US securities

markets would be strengthened by the adoption of a generally accepted corporate governance code of best practice?

a. b. c.

69% 17% 14%

Plenary 3: The case for governance best practice codes in a US context.

• a. Yes
• b. No
• c. Not sure

Voting sponsored by: