by clare@gibit.co | 15 Aug 2020 | Corporate Finance, Corporate Governance
We often think of political connections as clearly favoring a company. Perhaps the most extreme example is Donald Trump owning around 500 businesses (collectively known as the Trump Organization), which may affect the decisions that he takes as President. But...
by clare@gibit.co | 13 Apr 2020 | Corporate Governance, Responsible Business
A hot topic is whether companies should have workers on their boards, to ensure they act in the interest of stakeholders, not just shareholders. This debate was ongoing even before COVID-19 – for example, Theresa May initially suggested that she’d mandate...
by clare@gibit.co | 13 Apr 2020 | Corporate Governance
Hedge fund activism is a controversial topic. Prominent lawyer Marty Lipton argues that the long-term future of corporate America is being undermined “by a gaggle of activist hedge funds who troll through S.E.C. filings looking for opportunities to demand a change in...
by clare@gibit.co | 11 Oct 2017 | Corporate Governance
Activist hedge funds are often seen as the epitome of all that’s wrong with capitalism. They cut investment, fire employees, and break contracts to boost the short-term stock price, and cash out before the long-term value destruction comes to light. It’s...
by clare@gibit.co | 7 Oct 2017 | Corporate Finance, Corporate Governance, Executive Pay, Responsible Business
Imagine you’re the Minister for Education, deciding how large to make a school district. Smaller school districts offer parents more school choice. For example, in Boston, there are 70 school districts within a 30-minute commute of the downtown area, so parents...
by clare@gibit.co | 22 Sep 2017 | Corporate Governance
Proxy advisors are playing an increasingly influential role in corporate governance, by providing investors with guidance on how to vote in director elections or for a manager- or shareholder-sponsored proposal (e.g. on corporate social responsibility or payout...
