Overcoming Short-Termism

The Aspen Institute Business and Society Program published a new report on Overcoming Short-Termism yesterday.  It asks a fundamental question: How can the systemic influences towards short-termism among corporate managers, boards, investment advisers, providers of capital and government regulation be overcome?  This Report puts forward suggestions for new public policies in three areas: market incentives, to encourage more patient capital; fiduciary duty, to better align the interests of financial intermediaries and their investors; and transparency to strengthen invetor disclosures.  Participants who contributed to the Report include John Bogle, Warren Buffett, Louis Gerstner, Marty Lipton and Ira Millstein, so as one reporter has noted, "this wasn't just any blue-ribbon committee."