Archive
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Comment: Take care when considering buybacks
Pressure to provide buybacks can also lead to underinvestment in the business and downward pressure on wages, write Allen He and Sarah Keohane Williamson When the Business Roundtable released its Statement on Corporate Purpose in August 2019, it was met with equal praise and skepticism. By the strictest definition of investor relations, stakeholder capitalism and corporate purpose should be important only if investors deem them to be material, but the continued evolution of ESG engagement shows that materiality is dynamic and definitions can quickly change. According to recent research from Chief Executives for Corporate Purpose (CECP) and Fortuna Advisors, companies…
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Hershey general counsel steps down
Company says move is due to family illness Buybacks have undergone a meteoric rise since the turn of the 21st century, overtaking dividends as the preferred means to return capital to shareholders in many countries. In 2019 alone, firms spent more than $1.2 trillion globally on buybacks. Buybacks are controversial, however, with academics, practitioners and politicians all maligning their use. At its most basic level, buying back shares can be a technical capital allocation tool and an attractive alternative to dividends. Buybacks are more flexible than dividends for both companies and shareholders, can recycle excess cash to growth areas of…
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Strong corporate purpose correlates with improved financial results, study finds
Covid-19 pandemic further emphasizes benefits of cohesive corporate purpose, say CECP and Fortuna Advisors researchers Damien Atkins, senior vice president, general counsel and corporate secretary with The Hershey Company, is resigning, effective January 31, 2021. The company explains that the move is due to family illness. Atkins steps down from his general counsel and secretary role immediately and will spend the next several weeks focusing on the transition of his responsibilities. James Turoff, who was until this week vice president and deputy general counsel, will serve as acting general counsel as the company completes its internal and external search process…
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Cheesecake Factory settles SEC’s first Covid-related enforcement
Restaurant firm accused of misleading disclosures about pandemic’s financial impact The Cheesecake Factory has settled what the SEC says is its first charging of a public company for allegedly making misleading disclosures about the financial impact of the Covid-19 pandemic. The SEC’s administrative action says The Cheesecake Factory in mid-March faced ‘an unprecedented challenge to its business’ as a result of the health crisis and issued several disclosures regarding the effect of, and its response to, the pandemic. Some of those disclosures failed to adequately inform investors of the extent of the pandemic’s impact on the company’s operations and financial…
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PPL general counsel to retire
Joanne Raphael has been with the NYSE-listed utility for 35 years Joanne Raphael, executive vice president, general counsel and corporate secretary with PPL Corporation, has announced her plan to retire on June 1, 2021, after a 35-year career with the Allentown, Pennsylvania-based company. Raphael has been PPL’s general counsel and corporate secretary since June 1, 2015. Before that she held various roles within the legal department, including deputy general counsel. She was appointed to lead PPL’s external affairs function in 1998 and during her time with the utility company has been responsible for federal and state government relations, corporate communications,…
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Governance Matters: Understanding Federated Hermes’ ESG integration and emerging themes for the 2021 proxy season
In the third episode of the Governance Matters podcast, Jeff Cossette explores how investors are using ESG factors to make investment and proxy voting decisions For corporate governance teams, the proliferation of socially responsible investment asset managers presents both risks and opportunities. Ignore their expectations and you might expect not only a higher cost of capital but also a slew of unwelcome consequences on the proxy front. In the latest episode of the Governance Matters podcast, we catch up with Martin Jarzebowski, director of ESG and responsible investing at Federated Hermes, about his firm’s approach to integrating ESG and stewardship…
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Bombardier hires new general counsel
Annie Torkia Lagacé was previously executive vice president at Stornoway Diamonds Montréal-based Bombardier has hired Annie Torkia Lagacé as senior vice president, general counsel and corporate secretary, effective December 3. In her new role, Torkia Lagacé reports to Bombardier president and CEO Éric Martel. She succeeds Steeve Robitaille, who will remain with the company in the role of senior vice president for strategic projects until the completion of the sale of Bombardier Transportation to Alstom and to ensure a smooth transition of responsibilities to Torkia Lagacé. Bombardier and Alstom said on December 1 that they had received all necessary regulatory…
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The week in GRC: Federated Hermes targets diversity and companies press Congress on climate change
This week’s governance, compliance and risk-management stories from around the web – CNN reported that a vote on whether Swiss companies should face greater liability at home for human rights and environmental abuses committed overseas did not pass. Provisional results showed that more than 50 percent of voters approved of the Responsible Business Initiative but it did not garner support from the majority of cantons and both are necessary for a referendum in the country to pass. The initiative would have required Swiss companies to assess the human rights and environmental practices not just of their own operations, but also…
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Nasdaq targets board diversity with ‘comply or explain’ plan
Exchange acts as investors and regulators seek better representation of wider range of people Nasdaq is moving to increase diversity on the boards of its listed companies amid growing pressure from investors and state laws for greater inclusion of under-represented groups – or at least disclosure around the issue. Nasdaq on Tuesday filed a proposal with the SEC to adopt new listing rules. Failure to comply will result in a company being kicked off the exchange. If approved by the SEC, the rules would require companies to have – or explain why they do not have – at least two…
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TCI goes global with ‘say on climate’ campaign
Hundreds of companies will be targeted over the next two years, hedge fund says CFA Institute’s plan to create a global ESG standard has triggered concern among some US and European asset managers already juggling overlapping regulations and rising costs in a crowded space. Virginia-based CFA Institute, which offers chartered financial analyst certification globally, has launched a consultation, gathering feedback on its proposed principles of voluntary ESG disclosure standards for investment products. It aims to issue a draft voluntary standard in six months. ‘It is very difficult for investors to find products that are suitable for their needs and preferences,’…
