Directors’ Duties and Sustainable Corporate Governance

European Commission study by Ernst & Young (EY)

Directors’ Duties and Sustainable Corporate Governance

  • 11 - 13 November 2020
  • Online Policy Workshop

The videos are available here

The summary report is available here

The programme can be downloaded here.

About this workshop

The European Commission recently published a study by Ernst & Young (EY) on directors’ duties and sustainable corporate governance commissioned in 2019. Studies of this type are usually a stepping stone for policy proposals that will be put forward for consideration by EU Member States and the European Parliament. In the words of the Commission:

“the Study found a clear trend of short-termism in the focus of EU companies. It identified key drivers of this issue, ranging from the narrow interpretation of directors duties and the company’s interest with the tendency to favour the short-term maximisation of financial value, through growing pressure from investors and the lack of a strategic perspective on sustainability all the way to the limited enforcement of the directors’ duty to act in the long-term interest of company. In order to lengthen the time horizon in corporate decision-making and to promote a corporate governance that is more conducive to sustainability, the Study also identified specific objectives that EU intervention could aim to reach".

The study identifies a number of policy options for the European Commission to consider (summarised at pp. 51-60), which may deeply impact corporate law and governance across the European Union. Topics include directors’ duties, the company’s purpose, corporate disclosures, executive compensation, and engagement with stakeholders. The European Commission has conducted a public consultation on these policy options, that closed on 8 October 2020, and is expected to issue proposals at the beginning of 2021, if not earlier.

ECGI held an online roundtable to discuss the report, the academic literature, and recommendations on the topics referenced in the report.

Useful links:

Watch recordings of the workshop | Summary Report

EY Report: https://bit.ly/3jcBBUt
All Public Responses to the Consultation: https://bit.ly/3khuNGq
Submitted Response from Wolf-Georg Ringe: https://bit.ly/3jhTxgx
Submitted Response from Paul Davies and Rolf Skog (ECLE group): https://bit.ly/3dPqY95
Submitted Response from Mark Roe and Holger Spamann: https://bit.ly/2TdHRkp
Submitted Response from Alex Edmans: https://bit.ly/2TdxBIJ
Submitted Response from Steen Thomsen: https://bit.ly/3kfjuyJ and https://bit.ly/2Hb9Xui

Wednesday 11 November 2020 (CET)

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Introduction

Time:
14:30h
- 14:35h

Speakers

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Presentation of the Report

Time:
14:35h
- 15:05h

A link to the report can be found here.

Speakers

Conference Documents

15:05
- 15:20

Break

15:20
- 15:50

Keynote Briefing: “What Do Financial Economists Know About Short Termism?”

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Keynote Briefing: “What Do Financial Economists Know About Short Termism?”

Time:
15:20h
- 15:50h

Speakers

Conference Documents

15:50
- 16:05

Responses to the European Commission’s Consultation by ECGI research members | Part 1

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Responses to the European Commission’s Consultation by ECGI research members | Part 1

Time:
15:50h
- 16:05h

Georg Ringe (Hamburg University and ECGI) (Response)

Speakers

Conference Documents

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Discussion

Time:
16:05h
- 16:35h

The European Commission Considers “Short-Termism” (And “What Do You Mean By That?”) Statement made by Prof. John C. Coffee, Jr. : Available here

Speakers

Conference Documents

16:35
- 16:50

Q&A

16:50
- 17:00

Concluding remarks | Day 1

Speakers:
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Concluding remarks | Day 1

Time:
16:50h
- 17:00h

Speakers

Thursday 12 November 2020 (CET)

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Introduction

Time:
14:30h
- 14:45h

Speakers

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Responses to the European Commission’s Consultation by ECGI research members | Part 2

Time:
14:45h
- 15:15h

Paul Davies (University of Oxford and ECGI) (Response)

Mark Roe (Harvard Law School and ECGI); Holger Spamann (Harvard Law School and ECGI) (Response)

 

Speakers

Conference Documents

15:15
- 15:30

Break

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Discussion

Time:
15:30h
- 16:30h

Reading material

Buyback Derangement Syndrome by Clifford Asness, Todd Hazelkorn, and Scott Richardson. The Journal of Portfolio Managemant, Vol. 44, no. 5. Available here

Are Buybacks Good for Long-Term Shareholder Value? Evidence from Buybacks around the World by Alberto Manconi, Urs Peyer, and Theo Vermaelen. Journal of Financial and Quantitative Analysis, Vol. 54, No. 5, Oct. 2019, pp. 1899–1935. Available here

Speakers

Conference Documents

16:30
- 16:50

Q&A

Back to full programme

Concluding remarks | Day 2

Time:
16:50h
- 17:00h

Speakers

Friday 13 November 2020 (CET)

14:45
- 15:15

Responses to the European Commission’s Consultation by ECGI research members | Part 3

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Responses to the European Commission’s Consultation by ECGI research members | Part 3

Time:
14:45h
- 15:15h

Alex Edmans (London Business School and ECGI) (Response)

Steen Thomsen (Copenhagen Business School and ECGI) (Response)

Speakers

Conference Documents

15:15
- 15:30

Break

Back to full programme

Discussion

Time:
15:30h
- 16:30h

Speakers

16:30
- 16:50

Q&A

Back to full programme

Concluding remarks | Day 3

Time:
16:50h
- 17:00h

Speakers

Conference Documents

Speakers

Presentations

Back to all presentations

Introduction

Time:
14:30h
- 14:35h

Speakers

Back to all presentations

Presentation of the Report

Time:
14:35h
- 15:05h

A link to the report can be found here.

Speakers

Conference Documents

Back to all presentations

Keynote Briefing: “What Do Financial Economists Know About Short Termism?”

Time:
15:20h
- 15:50h

Speakers

Conference Documents

Back to all presentations

Responses to the European Commission’s Consultation by ECGI research members | Part 1

Time:
15:50h
- 16:05h

Georg Ringe (Hamburg University and ECGI) (Response)

Speakers

Conference Documents

Back to all presentations

Discussion

Time:
16:05h
- 16:35h

The European Commission Considers “Short-Termism” (And “What Do You Mean By That?”) Statement made by Prof. John C. Coffee, Jr. : Available here

Speakers

Conference Documents

Back to all presentations

Concluding remarks | Day 1

Time:
16:50h
- 17:00h

Speakers

Back to all presentations

Introduction

Time:
14:30h
- 14:45h

Speakers

Back to all presentations

Responses to the European Commission’s Consultation by ECGI research members | Part 2

Time:
14:45h
- 15:15h

Paul Davies (University of Oxford and ECGI) (Response)

Mark Roe (Harvard Law School and ECGI); Holger Spamann (Harvard Law School and ECGI) (Response)

 

Speakers

Conference Documents

Back to all presentations

Discussion

Time:
15:30h
- 16:30h

Reading material

Buyback Derangement Syndrome by Clifford Asness, Todd Hazelkorn, and Scott Richardson. The Journal of Portfolio Managemant, Vol. 44, no. 5. Available here

Are Buybacks Good for Long-Term Shareholder Value? Evidence from Buybacks around the World by Alberto Manconi, Urs Peyer, and Theo Vermaelen. Journal of Financial and Quantitative Analysis, Vol. 54, No. 5, Oct. 2019, pp. 1899–1935. Available here

Speakers

Conference Documents

Back to all presentations

Concluding remarks | Day 2

Time:
16:50h
- 17:00h

Speakers

Back to all presentations

Responses to the European Commission’s Consultation by ECGI research members | Part 3

Time:
14:45h
- 15:15h

Alex Edmans (London Business School and ECGI) (Response)

Steen Thomsen (Copenhagen Business School and ECGI) (Response)

Speakers

Conference Documents

Back to all presentations

Discussion

Time:
15:30h
- 16:30h

Speakers

Back to all presentations

Concluding remarks | Day 3

Time:
16:50h
- 17:00h

Speakers

Conference Documents