The idea that business can be at the heart of an inclusive society, driven on the path towards social progress by a dynamic market, without undue exploitation, maximising shared economic and social benefits, must be central to any definition of progressive capitalism. It’s the theme of my new book, ‘The Company Citizen’. Continue reading “The Progressive Company Citizen”
Con Keating, head of research at Brighton Rock Group, discusses the use of pre-pack resolutions for distressed companies with pensions deficits, arguing that the problem is not one of ‘moral hazard’.
Pre-pack resolutions of distressed companies have received an extremely bad press in recent weeks; morally righteous rent-a-pension-quote politicians and regulatory authorities have queued to express their indignation at this “moral hazard”.
Continue reading “Pre-pack Insolvency and Defined Benefit Pensions”
When Theresa May spoke to the CBI last month she urged businesses to invest in Britain for the long term. The challenge for business is that in an uncertain environment firms often prefer not to invest, as they could make poor investments and therefore hurt performance. The Prime Minister might have a point though as businesses in the UK have tended to underinvest during more positive conditions too
When Theresa May spoke to the CBI last month she urged businesses to invest in Britain for the long term. The challenge for business is that in an uncertain environment firms often prefer not to invest, as they could make poor investments and therefore hurt performance. The Prime Minister might have a point though as businesses in the UK have tended to underinvest during more positive conditions too.
Continue reading “Why share buybacks imply executive managers have run out of ideas”
Performance-related bonuses should be scrapped and replaced with a substantial proportion of salary to be paid in shares. This would lead to better cumulative returns over the long-term, faster productivity growth and a fairer society
Performance-related bonuses should be scrapped and replaced with a substantial proportion of salary to be paid in shares. This would lead to better cumulative returns over the long-term, faster productivity growth and a fairer society
Why we need a more democratic capitalism
Why we need a more democratic capitalism
The growing inequality of trust in business reflects an increasingly pervasive view that large sections of society are no longer benefiting from our current economic system. If this chasm of trust is to be bridged, business and government need to create a far more democratic and inclusive economy. The failure to tackle this problem is likely to result an increase in the politics of fear which could ultimately undermine both our individual liberty and also our long-term prosperity.
Social democrats need to shift away from an exclusive reliance on tax and redistribution towards thinking more about making markets work at the micro level
Continue reading “Making markets work: how effective regulation reduces reliance on taxation”
Engaged shareholders are seen as key to better corporate governance but are they the best people to ensure companies’ long-term interests?
Engaged shareholders are seen as key to better corporate governance but are they the best people to ensure companies’ long-term interests?
For the past two decades, at least since the 1992 Cadbury report, the corporate governance agenda has been dominated by shareholder responsibility. The current corporate governance code, though administered by the Financial Reporting Council, relies on shareholder activism to pursue its ambitions. A continuing chorus exhorts shareholders to do more, and the mission has expanded from corporate governance to environmental and social concerns.
Companies face a host of new challenges. Is the composition of their boards adapting fast enough to meet them?
Companies face a host of new challenges. Is the composition of their boards adapting fast enough to meet them?
The three subjects of greatest concern to the boardrooms of publicly listed companies today are – arguably – cybersecurity, digital transformation and reputational risk. They have all been thrown up by rapid change and altering markets. Yet boardrooms have barely changed at all, in construct or composition, raising questions as to the extent to which they are fit for purpose.
Scaling-up pensions schemes would not just increase savers’ retirement incomes, it could have a significant impact on corporate governance and lead to better long-term returns
Scaling-up pensions schemes would not just increase savers’ retirement incomes, it could have a significant impact on corporate governance and lead to better long-term returns
The general election debate between the political parties was widely criticised by commentators for not tackling the underlying issues which face our economy and society. In particular, there was almost no focus on the United Kingdom’s woeful productivity record. Such a debate, including the way in which our wealth-creating institutions are governed, is too distant for most voters, but it remains the role of political leaders to demonstrate why these issues must be tackled. Continue reading “Bigger is better for pension funds”
