Long-term decision making

July 2018

Institutional investors have become increasingly prominent in capital markets over the last few decades, and they have used their power to put pressure on boards to ensure companies are  focused on creating long-term shareholder value. They have also sought more information about boards’ oversight processes. For their part, boards want to better understand investors’ priorities. With that knowledge, boards are better able to ensure that management is on the right strategic path, and compensation committees can create compensation plans that motivate executives to make the right choices.

On June 6–7, members of the Compensation Committee Leadership Network (CCLN) met in New York to discuss these issues. They were joined in separate sessions by Glenn Booraem, principal and investment stewardship officer at Vanguard, and Michelle Edkins, global head of the investment stewardship team at BlackRock. This ViewPoints synthesizes those conversations, which focused on understanding the institutional-investor landscape and creating and incentivizing long-term value.