New Study Outlines What Institutional Investors Say Should Be in a CEO’s Long-Term Plan

NEW YORK–(BUSINESS WIRE)–#ESG–Institutional investors want to hear more from CEOs about how they are
positioning their company to succeed in the long-term, according to a
new paper released by CECP’s
Strategic Investor Initiative
(SII), Emerging
Practice in Long-Term Plans
. According to investors, when
presenting long-term plans, CEOs need to go deeper than just telling a
good marketing story. Instead, they need to demonstrate that the
company’s leadership understands how long-term issues impact value
creation and has developed a strategy to mitigate risks and ensure
sustainable business practices. At a basic level, institutional
investors expect five essential elements in a long-term plan
presentation; these disclosures should be or include:

  1. Additive to existing disclosures: Add information to the public
    domain or provide additional context for existing disclosures.
  2. More than marketing — contextualized disclosures: A strategic
    plan narrative is not a recitation of good news stories. Initiatives
    should be contextualized to help investors assess their significance.
  3. Focused by materiality: A long-term plan should disclose
    information that is material to the operating performance and
    financial prospects of the business.
  4. Integrated discussion of material Environmental, Social, and
    Governance (ESG) issues:
    These topics are widely acknowledged as
    core to business success over the long-term and should be a part of an
    integrated discussion — not a silo or presented as a list of “awards.”
  5. Forward looking information: A long-term plan is an opportunity
    for a company to meaningfully talk about the future across a broad
    range of value-relevant topics, accompanied by goals, metrics, and

“The problem we currently face is that the existing marketplace for
investor information is oriented to the short-term,” said Brian
, SII’s Research Director and author of the report.
“There’s an opportunity to decrease the information asymmetry between
corporations and investors by increasing the amount and quality of
long-term focused disclosures. Leading CEOs are demonstrating how this
can be done.”

In addition to the baseline content, Tomlinson notes that CEOs can
enhance their presentations further by including disclosures around five
key themes: risk factors and mega-trends; corporate governance;
capital allocation; human capital management; and shareholder and
stakeholder engagement
. The paper offers examples from presentations
delivered at SII’s CEO
Investor Forums
, including by BD, Delphi, PG&E, Medtronic, Merck,
Aetna, Telia, and Prudential.

The study is built off the feedback from hundreds of investors that SII
received about the 20+ presentations at SII’s five CEO
Investor Forums
over the previous two years. The Forums are a part
of SII’s work to promote “long-termism” on Wall Street and in the
C-Suites of the world’s leading companies.

SII’s Investor
also informs Tomlinson’s paper – specifically the seven
questions CEOs should answer in their long-term plan presentations. The
letter was signed by nine leading investors from SII’s Advisory Board,
including SII co-chair and Chairman of Vanguard Bill McNabb. Most
recently, Harvard Business School Professor George Serafeim
co-authored an article in Harvard
Business Review
that offers preliminary indications that CEO
presentations of long-term plans at SII’s CEO Investor Forums have a
market impact, particularly on trading volume.

The CEO Investor Forums are a new platform for senior business leaders
from the world’s leading companies to present long-term plans to
long-term oriented institutional investors. The sixth
CEO Investor Forum
will take place in February 2019 and will feature
long-term plan presentations from Mark Schneider, CEO, Nestle,
Steven Collis, Chairman, President & CEO, AmerisourceBergen
, Tim Hockey, President & CEO, TD
Ameritrade Holding Corporation
, and Marco Tronchetti,
Executive Vice Chairman & CEO, Pirelli. More information
about this CEO Investor Forum and additional forums planned for 2019 can
be found at: http://cecp.co/SII.


CECP is a CEO-led coalition that believes that a company’s social
strategy — how it engages with key stakeholders including employees,
communities, investors, and customers —determines company success.
in 1999 by actor and philanthropist Paul Newman and other business
leaders to create a better world through business, CECP has grown to a
movement of more than 200 of the world’s largest companies that
represent $11.3 trillion in revenues, $23.8 billion in societal
investment, 17.4 million employees, and $15 trillion in assets under
management. CECP helps companies transform their social strategy by
providing customized connections and networking, counsel and support,
benchmarking and trends, and awareness building and recognition.


The Strategic Investor Initiative is a coalition of thought leaders
committed to the long-term movement. Collectively, SII is developing a
new platform for leading companies to create, convey, and deliver
long-term plans to long-term investors. SII’s vision is to spark the
movement of trillions of dollars of capital to companies demonstrating
performance excellence over the long-term. SII provides tools and
resources designed to introduce and support market behaviors that
ultimately deliver sustained long-term value for all stakeholders.


Sara Adams, 212-825-1252


I have been involved with publishing and marketing for the past 32 years. My passion is helping people share their voice. I am able to do this through two important venues: One, with Area-Info.net where people can share everything from opinions to events to news. It is your choice! What do you want to share? Two, through a new program called America's Real Deal I am involved with to help business owners get their voice heard.I schedule speaking engagements with community groups and business groups to share my passion about the importance of "sharing your voice".Contact me directly at lee@leeeverton.com for scheduling information.