Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Governance, Incentive Alignment, Mandates | Article
22 May 2024 - On 15 May 2024, FCLTGlobal joined the Pacific Pension Institute at its “PPI in Residence” salon in New York City to lead a discussion on overcoming short-term pressures and meeting savers’ needs.
Incentive Alignment | Article
24 April 2024 - Artificial intelligence has already changed the way data is compiled and processed on a mass scale – and in particular in the investment industry, reshaping how professionals make decisions, manage portfolios, and analyze market data. A prominent challenge facing the industry today is the design of executive pay – specifically, structuring it in ways that incentivize strong performance over many years rather than just over a few fiscal quarters.
Incentive Alignment | Toolkit
19 July 2022 - This matrix provides a menu of key contract provisions for mandates. We compare typical provisions, which tend to reflect a short-term mindset, to those promoting a longer-term approach, and offer ideas for exploratory provisions. The provisions are relevant for separately managed accounts and commingled funds, with unique provisions described for the latter.
Incentive Alignment | Report
19 July 2022 - FCLTGlobal has conducted research since 2015 to facilitate the creation of mandates that align asset owners and asset managers long-term goals.
Incentive Alignment | Toolkit
19 July 2022 - Grouped among key areas of governance, incentives, metrics, and engagement, the onboarding checklist allows for effective communication between the asset owner and manager and sets parameters for the relationship to function transparently.
Incentive Alignment | Toolkit
19 July 2022 - While a meeting schedule is typically agreed at the start of a relationship, the manager scorecard can be completed at any point during the relationship. The scorecard can help focus attention on areas of importance and objectives beyond short-term financial performance.
Incentive Alignment | Toolkit
19 July 2022 - Finding the right manager is crucial to developing a successful relationship—this list of questions can help asset owners select managers that are capable of investing over the long term, as well as achieve alignment around philosophy and beliefs regarding long-term value creation.
Incentive Alignment | Toolkit
19 July 2022 - FCLTGlobal has developed the following example statement to communicate externally about an investor’s responsibilities. Among other uses, it can be posted on organizations’ websites or shared with investment partners.
Incentive Alignment | Article
17 May 2022 - An upcoming project will expand on our model for long-term investment mandates and create new tools for investors to lay the foundation for generating stronger returns.
Incentive Alignment
1 October 2021 - FCLTGlobal hosted an Implementation Forum on The Future of Long-term Executive Remuneration Design on 23 September to advance the effort and broaden the range of possibilities for change.
Incentive Alignment | In the News
1 July 2021 - “The first step towards a more effective monitoring approach is to recognise that short-term performance data are at best a weak indicator of success for strategies with long-term objectives”
Incentive Alignment | Report
8 March 2021 - The Risk of Rewards presents practical approaches that companies and their investors can use to frame their decisions about corporate executive remuneration to support long-term value creation