Focus Needed On Long-term Value


    Business leaders need to focus their thinking and actions on long-term value creation, say Mark Wiseman, president and CEO of the Canada Pension Plan Investment Board, and Dominic Barton, global managing director, McKinsey & Company. Announcing a joint initiative, entitled ‘Focusing Capital on the Long Term’ at the Institute of Corporate Directors annual conference, they described short-termism as a central concern in today’s global economy and discussed the pivotal role that corporate directors and institutional investors can take to foster long-term thinking and action. Recognizing that time horizons vary by industry and asset type, they introduced a new definition for long-term to set a common foundation for the initiative’s work: Long-term thinking goes beyond a product cycle, beyond the average tenure of directors or the CEO, and beyond a typical investment cycle.