Strategic Corporate Governance: A New Model for Capitalism & Long Term Value Creation (Ended)
Blackrock, McKinsey, UAW - Executive Compensation: Is the Board the Problem with Performance and Pay?
A Call to Action for Board Strategic Leadership
Innovation and long-term value creation needs to be the focus of Boards and C-Suite executives.
Seventy-five percent of the 1,000 largest USA companies do not have the management structure, performance metrics and long-term incentives for balanced growth, innovation and long-term value creation for shareholders.
The short-term and mostly compliance focus of many boards is a barrier to creating future value. It is time to rethink the strategic planning horizon, operational performance metrics and longest accountable performance period for named officers (most companies have a 3-year or less incentive plan).
Current long-term incentive design and Say on Pay and proxy voting must be realigned with long-term value creation for shareholders and society. Recent research by McKinsey / Canada Pension Plan Investment Board and Incentive Lab confirms the strategic governance disconnect and improvement opportunity for Directors and Named Officers.
You Will Learn:
- What should be the role of the Board in long-term value creation for customers, shareholders and broader society?
- How should the Board and named officers ensure the balance between growth (innovation) and Return on Invested Capital (ROIC), which in turn drives long-term cash flows and sustainable long-term shareholder wealth?
- How should the Board ensure the integrated alignment of business strategy, value drivers, management structure, name officer accountability design, performance targets and long-term incentive design?
- How should Board and the C-Suite ensure that the right disclosures tell the strategy story, performance metric and incentive alignment for long horizon investors?
- What should be the Board's role in CEO succession planning, CEO selection and Organizational Capital Management?
- What should active and engaged shareholders do when the Board fails to live up to their fiduciary duty for long-horizon investors?
Tim Koller - Global Director, McKinsey Corporate Performance Center
Michelle Edkins - Global Managing Director, Corporate Governance, Blackrock
Meredith Miller - Chief Governance Officer, UAW Benefits Trust
Glen Welling - CEO, Engaged Capital, former Relational Investors
Mark Van Clieaf - Partner, Organizational Capital Partners
$55 $45 or FREE with Function Ticket
Non-Members - $55
Reserved VIP table - $360 (8 guests, company name on table, contact office directly)
(member pricing underwritten by CFA Chicago)
CFA Institute Qualified Activity: Eligible for 2.5 credit hours
Attire: Business Casual
Menu: Refreshments and light appetizers
3:00 - 3:15pm: Registration & Networking
3:15 - 4:15pm: Introduction, Program Overview & Keynote
4:15 - 4:30pm: Networking Break
4:30 - 6:00pm: Panel Discussion and Q&A
Hosted by: Education Advisory Group
Related Resources and Materials:
Blackrock: Time to Rethink Executive Incentive Programs
Credit Suisse HOLT Capex Under Investment
Credit Suisse HOLT Management Incentives Europe
Credit Suisse HOLT Management Incentives US
Focusing Capital on the Long Term, including Harvard Business Review Article
McKinsey & Company Insights & Publications: Balancing ROIC and growth to build value
McKinsey & Company Insights & Publications: Corporate Finance
McKinsey Quarterly: Measuring long-term performance
McKinsey Quarterly: The strategic yardstick you can’t afford to ignore
Organizational Capital Partners Blog: How To Design CEO Accountability And Corporate Governance
Organizational Capital Partners Blog: New York Times - "Pay For Performance - Paying For Value?"
Organizational Capital Partners Blog: Strategic Pay For Future Value
Organizational Capital Partners Blog: Total Shareholder Return and Management Performance: A Performance Metric Appropriately Used, Or Mostly Abused?
Organizational Capital Partners: Designing Investee Company Metrics, Incentives, Leadership to Create Long-Term Value by Mark Van Clieaf
Rotman ICPM: Recasting Executive Compensation: From Gamesmanship to Authenticity
Rotman ICPM: Ten Strategies for Pension Funds to Better Serve Their Beneficiaries
Rotman ICPM: The Governance of Corporate Sustainability
Tim Koller is a partner in McKinsey & Company's New York office where he is a core leader of the firm's Corporate Finance Practice. In his 26 years of consulting, Koller has served clients globally on value creation, corporate strategy, capital markets issues, and M&A transactions. Koller is the lead author of Valuation: Measuring and Managing the Value of Companies. Valuation, now in its 5th edition, has sold more than 500,000 copies and been translated into nine languages. It is used as a textbook at top business schools, such as Wharton, Chicago Booth, MIT, INSEAD, Tuck and Northwestern. Leading banks, investment banks, industrial companies use it as an authoritative perspective on valuing companies and value-based management. Koller is also the lead author of Value: The Four Cornerstones of Corporate Finance, which was published in November 2010. Value, aims to help senior executives, board members and non-financial executives understand the linkages between strategic decisions and value creation and to have the courage to focus on true value creation rather than the latest fads and misconceptions. Koller is the founder of McKinsey on Finance and has written extensively on valuation and capital markets issues, including articles for the Harvard Business Review and other publications. Koller has also lectured at business schools such as the Chicago Booth, Northwestern, Tuck, Yale, and INSEAD. Koller has an M.B.A. from the University of Chicago and B.S. in Economics and Accounting from Loyola Marymount University in Los Angeles. Before joining McKinsey, he was a vice president at Stern Stewart & Company, a leading value-based management advisory firm, where he helped develop key financial analytical tools and software. Earlier, he served as a senior financial analyst at the Mobil Corporation.
Michelle Edkins is a Managing Director at BlackRock and Global Head of its Corporate Governance and Responsible Investment team of 20 specialists based in five key regions internationally. In that role, she is responsible for the team's engagement and proxy voting activities in relation to the companies in which BlackRock invests on behalf of clients. She also serves on the firm's Human Capital and Government Relations Steering Committees. Edkins is an active participant in the public corporate governance debate and regularly speaks and writes on the importance of good stewardship for company performance. She was named in the NACD (the US National Association of Corporate Directors) Directorship 100 Governance Professionals list for the past two years. She is also a Fellow of the Aspen Institute's First Movers program and Chairman of the Board of Governors of the International Corporate Governance Network. Prior to joining BlackRock in 2009, Edkins was Managing Director at Governance for Owners, an independent partnership offering products that support responsible long-term share ownership. She started her corporate governance career in the UK in 1997 at Hermes Pensions Management, where she spent eight years, initially as the head of the corporate governance team and thereafter as Director of Institutional Relations. An economist by training, Edkins has also worked for New Zealand's Reserve Bank and the British High Commission in Wellington. She lives in San Francisco with her husband and two children.
Meredith Miller is the Chief Corporate Governance Officer of the UAW Retiree Medical Benefits Trust ("Trust"). The Trust was established in 2010 as a Voluntary Employee Beneficiary Association (VEBA) to pay the medical benefits for 850,000 UAW retirees. The Trust is the largest private healthcare payor in the U.S. and has assets of $55 billion. Miller oversees the Corporate Governance Program of the Trust for domestic and international equities, including building relationships with the trust's investment managers around sustainability issues and proxy voting practices. Miller joined the Trust in 2010 after serving twelve years as Assistant Treasurer for Policy for the Connecticut State Treasurer. In this capacity, Miller was responsible for the Treasurer's initiatives related to corporate governance for the Connecticut Retirement Plans and Trusts, economic development and financial education. Miller previously served in the Clinton Administration as the Deputy Assistant Secretary for Policy, Pension and Welfare Benefits Administration, U.S. Department of Labor. Miller also served as the Assistant Director of the Employee Benefits Department, AFL-CIO and previously as the Assistant Director of Research for Employee Benefits, Service Employees International Union. Miller received a Bachelor of Arts degree from Hampshire College, Amherst, Massachusetts and her Master's of Science from the London School of Economics, London, England.
Glen Welling is the founder and Chief Investment Officer of Engaged Capital. He is responsible for overseeing all facets of the firm. Prior to Engaged Capital, Welling was a Principal and Managing Director at Relational Investors, a $6 billion activist equity fund. At Relational, Welling was responsible for managing the equity fund's consumer, healthcare and utility group. He was involved in all aspects of Relational's research process from the identification of investment ideas to the development and implementation of the engagement process with portfolio companies. Prior to Relational Investors, Welling spent seven years as a Managing Director at Credit Suisse as the Head of the Investment Banking Department's Advisory Business. At Credit Suisse, he built his group from two to fifty people and into one of the leading commercially focused advisory businesses on Wall Street advising on over $100 billion of transactions in his last year there. Welling joined Credit Suisse when the Firm acquired HOLT Value Associates L.P. ("HOLT") where he was a Partner and Managing Director. At HOLT, he ran the Corporate and Alliance Services business, advising senior executives and Boards on how their decisions would be viewed and valued by institutional investors. Prior to HOLT, he was the Managing Director of Valuad U.S., a financial software and training company. Prior to leading Valuad U.S., Welling worked at a number of leading strategy consulting firms including A.T. Kearney and Marakon Associates. He has worked and managed businesses in the United States, Europe, and Asia. Welling also teaches executive education courses at the Wharton School of Business at the University of Pennsylvania, his alma mater, where he was a two year captain and four year letterman on the tennis team. He currently serves as Chairman of the Board of Directors for the university's tennis program and as a member of the Wharton Executive Education Board.
Mark Van Clieaf is Partner with Organizational Capital Partners(OCP). He brings over 25 years experience consulting worldwide for Institutional Investors, Boards & Management with a broad background in Management Structure Design and Organization Effectiveness, CEO/Executive Succession Planning & Executive Search, CEO performance scorecard design, Executive Compensation, Pay for Performance, and Corporate Governance all linked to shareholder value and sustainability for societies. He brings over 35 years experience in sales & marketing leadership roles, and consulting experience including a number of years with Price Waterhouse in their Business Strategy and Executive Search Consulting Practices. His early career was in advertising, graphic design, direct marketing industries. His years of consulting experience covers a broad range of industries from Consumer Marketing, Marketing Services, Financial Services, Retail, Technology, Healthcare, Utilities, Energy, Mining, Telecom, working worldwide. He brings extensive experience with organization design and leadership assessment for Customer Relationship Management and CRM data-mining. Van Clieaf's research and consulting on Work Levels and the 5 Levels of CEO Work & Innovation, 5 Levels of CEO Capability & Systems Thinking and the link to shareholder and societal value are recognized worldwide by Boards, Institutional Investors and the business media. These OCP organizational and leadership insights come from over 600 interviews at Board, Global CEO, Group CEO, Business Unit President and VP&GM levels on the differences in role design to create differential value between these roles, and their requisite leadership competencies by level.
*Special Notes Regarding Fees:
Regular, Candidate, and Affiliate Members may apply function tickets as payment for Non-member or Student-Member. Credit card required to guarantee ALL reservations except for reservations using Function Tickets. Day-of-event registrations accepted on-site only if applicable and space available. There is a $5 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00 pm, April 21.
Members of any CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.
CFA Institute CE Qualified Activity
This program qualifies for credit under the guidelines for the CFA Institute Professional Development Program.
Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.