September 28, 2016
FCLT Global (formerly "Focusing Capital on the Long Term") announces Board of Directors and global membership; releases new research underscoring growing short-term pressures faced by CEOs
New York – FCLT Global (formerly "Focusing Capital on the Long Term") announced today its Board of Directors and global membership, marking its transformation from an initiative to an independent not-for-profit organization dedicated to encouraging long-termism in business and investment decision-making.
In conjunction, FCLT Global released a whitepaper, with new data from a McKinsey Quarterly survey panel, highlighting the challenges and costs that senior business executives world-wide are facing with the rise of short-termism. Key findings include:
- 87% of executives report feeling the most pressure to demonstrate financial results within two years, up from 79% from a similar survey two years ago;
- Emerging market executives were significantly more likely to report increasing short-term pressure (82%) than their peers in Europe (64%) or North American (65%); and
- Executives from companies with a strong commitment to long-termism were 26% less likely to say they would decrease discretionary spending and 22% less likely to delay new projects to meet earnings targets when compared to their peers at more short-term oriented companies.
FCLT Global's Chief Executive Officer, Sarah Keohane Williamson, said: "Short-termism is an issue that is costly to many countries and regions around the world, and we have a lot to accomplish. Our founding organizations and members are integral to the work of FCLT Global in developing practical approaches to creating long-term value and to implementing innovative ideas to advance greater long-term behaviours."
FCLT Global will hold its first Board meeting today in New York, to convene FCLT Global's leaders on the organization's research priorities and strategic direction around long-termism. The organization's Board members are:
- Mark D. Wiseman, Global Head of Active Equities and Chairman of BlackRock Alternative Investors (FCLT Global Chair)
- Dominic Barton, Global Managing Partner, McKinsey & Company
- Else Bos, CEO, PGGM
- Chow-Kiat Lim, Deputy Group President, Group Chief Investment Officer, GIC
- Andrew N. Liveris, Chairman & CEO, The Dow Chemical Company
- Mark Machin, President and CEO, Canada Pension Plan Investment Board
- Cyrus P. Mistry, Chairman, Tata Sons
- Paul Polman, CEO, Unilever
- Theresa J. Whitmarsh, Executive Director, Washington State Investment Board
- Sarah Keohane Williamson, CEO, FCLT Global (ex-officio)
Larry Fink, Chairman and CEO of BlackRock, will serve as a Strategic Advisor to FCLT Global.
The organization started as an initiative formed in 2013 by Canada Pension Plan Investment Board ("CPPIB"), and McKinsey & Company. The founders of the new organization, FCLT Global, are BlackRock, CPPIB, The Dow Chemical Company ("Dow"), McKinsey & Company, and Tata Sons.
In addition to the founders, FCLT Global involves member organizations, from nine countries, committed to achieving long-term tangible actions that benefit businesses, markets and societies more broadly. The members announced today include: APG, ATP, Caisse de dépôt et placement du Québec, Edelman, GIC, Hillhouse Capital Group, Kempen Capital Management, New Zealand Super Fund, Ontario Teachers' Pension Plan, PGGM, Piramal Enterprises, Russell Reynolds Associates, State Street Global Advisors, Sullivan & Cromwell LLP, Unilever, and Washington State Investment Board. Information on becoming a member of FCLT Global is available at www.fcltglobal.org.
About FCLT Global
FCLT Global is dedicated to developing practical tools and approaches that encourage long-term behaviours in business and investment decision-making.
It takes an active and market-based approach to achieve its goals. By conducting research and convening business leaders, FCLT Global develops tools and generates awareness of ways in which a longer-term focus can increase innovation, economic growth and future savings.
FCLT Global's membership encompasses asset owners, asset managers and corporations from around the world.
FCLT Please visit www.fcltglobal.org for more information.
Nadia Damouni, Edelman, on behalf of FCLT Global
T: (917) 344-4771
Woomi Yun, Edelman, on behalf of FCLT Global
T: (212) 729-2166