From: The CECP SII Advisory Board Investor Subcommittee
Subject: Guidance on Future CEO-Investor Forum Long-Term Plan Presentations
CECP institutions have segments of assets under management with a long-term investment outlook that are generally between three and seven years – or longer. Here are some general themes that CEOs might address when talking to large, long-term investors:
GrowthWe suggest CEO presentations be spent talking about plans for future growth, with goals, metrics or milestones mapping to future years with a minimum five-year trajectory. Companies should articulate their view of the future market place, their industry’s operating environment, how future trends may affect their company’s operations and how their growth plans address these related opportunities.
StrategyThe CEO should consider including overarching commentary on the role of the board in formulating the long-term strategy and its processes for monitoring management in delivery of the plan. This is intended as a focused narrative about future performance, not past performance.
RiskA long-term plan provides a corporation with an opportunity to communicate its view of key financially material risks, including long-range mega-trends (such as climate-related risks) and the relevant frameworks used to identify environmental, social and governance (ESG) factors. The majority of this discussion should ideally focus on the strategy and resources allocated to address future risks.
As long-term investors, there are issues of enduring interest to us as we seek a deeper understanding of our investee companies and inform our voting and engagement activities. Below we set out key suggested questions to consider when presenting publicly-disclosed, investor-facing long-term plans.
Over time, we expect that the delivery of long-term plans will become a mainstream feature of the schedule of corporate communications with shareholders. CECP’s CEO-Investor Forums are a key tool in refocusing our capital markets towards this new normal emphasis on long-term value creation. We look forward to upcoming CEO long-term plan presentations at future Forums.
William McNabb III
Chairman, Vanguard SII Co-Chair
Head of ESG Investing
President Heron Foundation
Robert Fernandez, CFA
Director of ESG Research
Breckinridge Capital Advisors
Dr. Hans-Christoph Hirt
Head of Equity Ownership Services
Hermes Investment Management
Voya Investment Management
Founder and CEO
Cornerstone Capital Inc.
Gianna M. McCarthy
Office of the NYS Comptroller
Division of Pension, Investment
Mark W. McDivitt
Managing Director, Head of ESG Solutions
State Street Corporation
Brian A. Rice
Investments – Corporate Governance
California State Teachers’ Retirement System
Current Advisory Board Members as of January 11, 2018 include:
Chairman, Vanguard Group & SII Co-Chair
Senior Vice President Global Responsibility and Sustainability, Nielsen
CFA, Vice President, Director of ESG Research, Breckinridge Capital Advisors
Executive Director and Head of Hermes EOS
Vice President, Investor Relations, Merck
Managing Director, Head of ESG Solutions,
State Street Global Exchange
Portfolio Manager, CalSTRS
Director, Strategic Investor Initiative, CECP
Managing Director and Head of ESG Investing, Neuberger Berman
President, F.B. Heron Foundation
Managing Director, Global Head of Investment Stewardship, BlackRock
Vice President of Research, Investment Management, CDPQ
Founder, CEO and Chair of the Board, Cornerstone Capital Inc.
Senior Program Officer, Inclusive Economies, Ford Foundation
President, Walmart Foundation & Global Head of Sustainability, Walmart
Assistant Vice President, Voya Financial
Leader, Board Leadership Center, KPMG
Head of Sustainable Business Programs, Bloomberg
Principal and Investment Stewardship Officer, Vanguard
Anthony Di Meo
Director, Investor Relations, BD
Director of Corporate Responsibility, NASDAQ
Assurance Partner and Leader, PwC’s Governance Insights Center, PwC
Director of Corporate Governance, Office of the New York State Comptroller
Head of Sustainability Thought Leadership, Managing Editor Sustainability, Thomson Reuters
Research Director, Strategic Investor Initiative, CECP
Tim Youmans<pclass=”margin-20″ >Engagement Director, Hermes’ Equity Ownership Services’ North America
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