Investor Impact on ESG

Investor Impact on ESG

Investor Impact on ESG

The seventh seminar in the ECGI Spotlight Series was held on Monday, 18 October 2021 at 16:00 CEST (10:00 EDT).

The seminar focused on three research papers from the ECGI Working Paper Series, presented by:

Roni Michaely, Michelle Lowry, Gaizka Ormazabal

 

ABOUT THIS EVENT

Investors’ support for environmental and social (E&S) proposals at shareholder meetings has reached new heights in 2021, demonstrating that investors’ support on these issues has become increasingly strong.

In this seminar three separate studies regarding financial institutions’ involvement in promoting ES goals were presented and discussed. These studies focus on whether and when financial institutions’ funds vote in support of ES proposals, whether they do so when their votes actually make a difference, and whether institutions’ votes contain information on firms’ future risks.

Additionally, the seminar touched upon the engagements of large financial institutions with respect to reducing corporate carbon emissions around the world, and the impact of such engagements.

The ECGI Spotlight Series is a global online seminar programme highlighting chosen papers from the ECGI Working Paper Series.

 

Spotlight Team:

Mike Burkart (Editor) | Miriam Schwartz-Ziv | Amir Licht (Editor) | Geeyoung Min
Contact: Spotlight@ecgi.org

Supported by

            

Click below to visit the conference page

New Frontiers of Shareholder Engagement

New Frontiers of Shareholder Engagement

Online Workshop

New Frontiers of Shareholder Engagement

 Thursday, 14 October 2021 

10:00 – 13:00 EDT | 16:00 – 19:00 CEST

 

Organisers

Sergio Alberto Gramitto Ricci (New York University)

April Klein (New York University and ECGI)

Giovanni Strampelli (Bocconi University)

About the Event:

With the goal to advance our collective thinking on shareholder engagement, the organisers presented a virtual workshop on ‘New Frontiers of Shareholder Engagement’ on 14 October 2021. The virtual workshop brought together leading scholars from three continents to discuss, in an interdisciplinary perspective, some pressing corporate governance issues, such as institutional investors’ stewardship and commitment to environmental and societal objectives, collective engagement, the resurgence of retail investors and their power to bring business corporations to pursue ESG goals. The virtual workshop explored the institutional and retail investors’ engagement with corporate governance by placing emphasis on the expectations that citizens lay in their investments and in the corporate sector from both a financial and an ESG account. The virtual workshop was divided into two sessions, during which scholars discussed their work, also allowing questions from the audience.

Click below to visit the conference page

CEO Compensation: Evidence From the Field

CEO Compensation: Evidence From the Field

Online Seminar

Tuesday, 12 October

16:00 BST | 17:00 CEST | 11:00 EDT | 08:00 PDT

Organisers

Alex Edmans (London Business School and ECGI)
Tom Gosling (London Business School)

ABOUT THE EVENT

The study, ‘CEO Compensation: Evidence From the Field‘, surveyed more than 200 directors and 150 investors in FTSE-listed companies. It reveals the dynamics around remuneration of CEOs, including the objectives and constraints facing board directors and professional investors in devising executive pay, as well as the factors determining CEO remuneration.

Key to the findings are the underlying differences in opinion between directors and investors which may be a root cause for disagreements on pay packages. Investors typically focus on the detail in incentive plans and levels of pay, whereas boards are more focused on getting the right person, and, if they are good, keeping them through competitive pay awards and tailored remuneration packages.

There may also be more consensus on some aspects than thought. Directors are concerned that investors prevent them from tailoring contracts and prefer short-term returns, yet many investors would like directors to tailor and make incentives more long-term. Both investors and some directors support paying the CEO like a long-term owner, i.e. with restricted shares rather than bonuses and long-term incentive plans, which suggests a path forward.

The study findings was presented by the authors during this online seminar, and included a discussion with a Director and an Investor who participated in the survey.

Programme:

Tuesday, 12 October 2021  | 16:00 BST (17:00 CEST)
Welcome and Introduction 
Moderator/co-author: Tom Gosling,  Executive Fellow, CCG, London Business School and former Partner at PwC

Paper Presentation: CEO Compensation: Evidence From the Field
Alex Edmans, Dirk Jenter, Tom Gosling

Presented by: Alex Edmans, Professor of Finance, London Business School and Academic Director, CCG; ECGI Fellow

Discussion and Q&A
Deanna Oppenheimer, Founder, CameoWorks and Chair, Hargreaves Lansdown
Beo Yeoh, Senior Portfolio Manager, Global Equities, RBC Global Asset Management (UK) Limited

Closing Remarks
Moderator/co-author: Tom Gosling,  Executive Fellow, CCG, London Business School and former Partner at PwC

Click below to visit the conference page

Boards of Directors and Corporate Strategy in an Uncertain Context

Boards of Directors and Corporate Strategy in an Uncertain Context

2021 IESE – ECGI Corporate Governance Conference

Boards of Directors and Corporate Strategy in an Uncertain Context

Monday, 4 October 2021 | 13:30 – 19:30 CEST

Tuesday, 5 October 2021 | 13:25 – 18:30 CEST

Organisers

Marco Becht (Solvay Brussels School, Université libre de Bruxelles and ECGI)

Jordi Canals (IESE Business School)

This was a hybrid event. Speakers and invited guests attended in person and the general audience was online.

About the Event:

Corporate strategy is considered a central driver of the firm’s long-term orientation and a key lever for delivering financial performance. Corporate governance suggests that boards of directors have the duty to govern the firm and help develop it sustainably for the long term. Hence, boards are supposed to discuss the firm’s strategy and eventually make relevant decisions on corporate strategy.

In dealing with strategy, boards face a complex task. Board directors need to understand the businesses of the company, their industries, and the main issues in complex strategic decisions, such as digital transformation, decarbonization, or corporate restructuring. Moreover, the level of strategic uncertainties that companies and their boards face is also increasing.

This 2021 IESE-ECGI Corporate Governance Conference aimed to discuss these issues from a cross-disciplinary approach. IESE CCG and ECGI brought together leading scholars -including a Nobel laureate- from the areas of corporate strategy, corporate finance and organizational economics, as well as CEOs and chair persons from top-tier companies.

The conference took place October 4-5, 2021. There were five sessions where a distinguished scholar presented a paper, followed by a discussant. There were also two sessions with CEOs and chair persons to discuss the practical implications of boards’ involvement on these strategic issues.

With the financial support of the Social Trends Institute

Click below to visit the conference page

A New Concept of the Corporation: Part 5

The Purpose of the Corporation and How to Realize its Purpose

RIETI/WBF/ECGI

A Webinar Series on:

A New Concept of the Corporation

Part 5 | The Purpose of the Corporation and How to Realize its Purpose

Part 5 of this series was held on:

Friday, 21 July 2021

16:00 – 17:40 JST | 09:00 – 10:40 CEST | 08:00  – 09:40 BST

Organiser

Hideaki Miyajima (Waseda University and RIETI)

About the Event

Over the last few years, and particularly since the onset of COVID-19, the purpose of the corporation has been the subject of active debate. In place of shareholder value maximization, new definitions of corporate purpose have been proposed, and their implications for law, regulation, ownership, governance, measurement and performance of business have been much discussed.

On the occasion of the publication of the Japanese translation of Colin Mayer’s book “Prosperity: Better Business Makes the Greater Good” in March 2021, RIETI, WBF and ECGI came together to organise a webinar series on the new concept of the corporation, the EU/UK experience and its lessons for Japanese corporate governance reforms.

In this 5th and final webinar, Dr. Nobuhiro Endo, Chairman of the Board of NEC Corporation, gave a special lecture on the current state of Japan regarding corporate purposes, and Professor Colin Mayer and Professor Jordi Canals at IESE (University of Navarra Business School) held a discussion on the theme of “The Purpose of the Corporation and How to Realize its Purpose”.

Details of This Webinar

Language: English

Topics

  • The concept of purpose
  • How to realize the purpose of firms
  • EU/UK experience on the new purpose of corporations
  • The Future of the Corporation project of the British Academy
  • Implication of EU/UK experience for Japan
  • Current status of Japanese corporations

————————————————————-

About RIETI

The Research Institute of Economy, Trade and Industry (RIETI) is a policy think tank established in 2001. Its mission is to conduct theoretical and empirical research, maximize synergies with those engaged in policymaking, and to make policy proposals based on evidence derived from such research activities.

About WBF

The Waseda University Institute for Business and Finance offers various education activities and programs designed for cultivating management professionals who can lead the next generation, together with Waseda Business School, a leading business school in Japan and Asia accredited by both AACSB and EQUIS.

About ECGI

The European Corporate Governance Institute (ECGI) is a global research network and international scientific non-profit association providing a forum for debate and dialogue between academics, legislators and practitioners, focusing on major corporate governance and stewardship issues.

Supported by

                                                                                            

Click below to visit the conference page

Bail-outs and Bail-ins are better than Bankruptcy

Bail-outs and Bail-ins are better than Bankruptcy

A GLOBAL ONLINE SEMINAR SERIES FROM THE EDITORS OF THE ECGI WORKING PAPER SERIES

The sixth seminar in the ECGI Spotlight Series was held on Monday, 28 June 2021 at 16:00 CEST (10:00 EST).

The seminar focused on the research papers from the ECGI Working Paper Series:

Kristin van Zwieten, Horst Eidenmüller and Oren Sussman:

Bail-outs and Bail-ins are better than Bankruptcy: A Comparative Assessment of Public Policy Responses to COVID-19 Distress  (August 20, 2020)

About the event

COVID-19 has severely disrupted the conduct of business around the globe. In jurisdictions that impose one or more ‘lockdowns’, multiple sectors of the real economy must endure prolonged periods of reduced trading or even total shutdowns. The associated revenue losses will push many businesses into bankruptcy. No public policy response can recover these losses.

States can, however, act to reduce the amplification of the shock by the way in which they treat the cohort of newly bankrupt businesses. In jurisdictions where a well-functioning reorganisation procedure can produce value maximising outcomes in normal conditions, the temptation may be to subject this cohort to such procedures. This temptation should be resisted, not only because of the (significant) costs of these procedures, or because of concerns about institutional capacity to treat a high volume of cases, but also because such procedures are likely to be a poor ‘fit’ for the treatment of COVID-19 distress.

The more attractive routes to relief are bail-ins (one-time orders to creditors or counterparties, or some class thereof, to forgive), bail-outs (offers to assume the debtor’s liabilities, or a class thereof), or some combination of the two. In this paper, the authors explain why a public policy response is necessary to mitigate the amplification of the shock caused by trading shut-downs, and we compare treatment by the prevailing bankruptcy law with treatment by bail-ins or bail-outs along a range of dimensions. They conclude by suggesting principles to help guide the choice between bail-ins and bail-outs, and the design of either form of intervention. These principles should offer a useful starting point for thinking about the design and delivery of novel forms of relief to debtors distressed by COVID-19 related revenue losses.

The ECGI Spotlight Series is a global online seminar programme highlighting chosen papers from the ECGI Working Paper Series.

Spotlight Team:
Mike Burkart (Editor) | Miriam Schwartz-Ziv | Amir Licht (Editor) | Geeyoung Min
Contact: Spotlight@ecgi.org

Supported by

                   

Click below to visit the conference page