Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Incentive Alignment | Article
31 July 2024 - Using the sustainability J-curve as a tool for visualizing strategies that may not pay off today, but will likely pay off over time, will promote better company-investor dialogue, which in turn will help more ideas, innovations, and long-term rewards see the light of day.
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.
Innovation, 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 | Report
26 September 2023 - Companies need to reward leaders who create long-term value, but focusing on short-term returns as the primary metric in remuneration design keeps companies stuck in short-term behaviors.
Incentive Alignment, Mandates | Podcast
22 May 2023 - Carine Smith Ihenacho, Chief Governance and Compliance Officer at Norges Bank Investment Management, joins the podcast to discuss what responsible investment means to NBIM, the challenges and obstacles of implementing a responsible investing approach, and what differentiates NBIM from other large-scale institutional investors.
Incentive Alignment | Article
23 January 2023 - New rules from the SEC will require annual proxy disclosures centered around TSR, but is this the right metric to measure executive incentives and firm performance?
Incentive Alignment, Mandates | 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, Mandates | 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, Mandates | 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, Mandates | 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, Mandates | 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 | In the News
31 May 2022 - The world is approaching an inflection point on climate investing, says the Asia-Pacific chair of one of the world’s largest asset managers, with developments on standardised data and appropriate incentives that are speeding the pace towards net-zero emissions.