The pressure from investors who are looking for fast money can prevent good corporate governance. A classic example is share buybacks at the expense of future investments. That’s why we’ve been asking ourselves this question for some time: How can the influence of activists and speculators be limited without limiting shareholder rights? To put it bluntly: How do we turn the stock exchange from a playground for gamblers into a marketplace for co-owners? We advocate promoting long-term thinking – and at the same time strengthening long-term thinking shareholders.
A new stock index for patient investors
Saori Dubourg has launched an interesting initiative to this end: The BASF board member wants to change “the rules of the game in the stock markets” and curb shareholder value excesses. Together with companies such as Bosch and Novartis and consultants from PwC and the World Bank, it is therefore working on an innovative evaluation system for companies. The goal is a kind of new stock index that reflects social and environmental values – and not short-term profit expectations. This should bring the long-term prospects of a company to the fore, which would give managers more room for future investments. We are excited and wish Saori Dubourg and her comrades-in-arms every success.