< Back to Blog Listings

Asset Managers with $15 Trillion Urge Companies to Plan Long-Term

short term long term-blog.jpg

A group of prominent asset managers are keeping up the pressure on companies to think long term. Organized under the title of CECP: The CEO Force for Good, nine asset managers from firms representing $15 trillion in assets under management will assemble in New York this month, taking a stand with an open letter to chief executives requesting that they look past a quarterly earnings focus and address long-term plans, “with a minimum five-year trajectory,” and include their interaction with society as part of their strategy.

The group’s “ask” includes urging companies to report on key risk factors such as climate change, and how they “manage their human capital requirements.” Vanguard CEO Bill McNabb told the Financial Times: “For too long, companies have sacrificed long- term value creation to generate short-term results.”

John Howell is editorial director at 3BL Media.