Revisiting Stock Market Short-Termism

This report represents a unique consensus achieved at the Corporate/Investor Summit on stock market short-termism held in London, in July 2005, by the Conference Board Global Corporate Governance Research Center. The report addresses: The causative factors and the economic implications of a capital market system inclined towards short-termism; Why Summit delegates believe that now is the right time to search for concerted solutions to the distortions of short-termism; and What The Conference Board Global Corporate Governance Research Center intends to do to foster the continuation of this debate and stimulate future actions by corporations, investors, and intermediaries to address the issue of short-termism.

Topics Covered:

• The Issue of Stock Market Short-Termism
• Why Now?
• A Business and Political Climate to Restore Confidence in the System
• Shareholder Activism Movement and Corporate Governance
• The Pay-for-Performance Debate
• Reporting Extra-Financial Measures of Performance
• The Impact of Sustainability Issues on Long-Term Performance
• Restructuring the Securities Research Industry
• Summit Delegates’ Suggestions for Future Action