Shareholders’ Activism: The Role of Institutional Investors in Corporate Governance Michael McKersie Manager, Investment Affairs Association of British Insurers 51 Gresham Street London EC2V 7HQ Tel (020) Fax (020)
The Role of ABI Trade Association for Insurance Companies As Institutional Investors - £1,000 billion (approx) of investments
The Locus of Shareholders ownership interest accountability of company boards
ABI Guidelines cover a range of governance aspects underpin institutional policy framework examples: pre-emption and share schemes
The IVIS Monitoring Service
The Impetus Towards Greater Activism Investor pressure Myners Legislation (the threat of) The “comply or explain” approach
Response to Impetus Institutional Shareholders’ Committee paper Enhanced programme of engagement (collectively through ABI)
ABI and Activism the benefit of a collective approach where there is a governance component type and size of company
The Role of Activism Not a substitute for market discipline but an adjunct An investment style – but not for all Not an objective in itself – rather, long-term shareholder value creation