Cable vows crackdown on economic short-termism
1 min read
Business secretary Vince Cable will announce a clampdown on rogue business operators who shun economic responsibility for making "a quick buck" at today's Liberal Democrat conference in Liverpool.
Cable will reveal the launch of an official review to counter "market short-termism".
Pay, corporate incentives and irresponsible takeovers will all be under the spotlight.
Cable will tell party delegates: "We need shareholders that act like long term owners, alive to the risks of instability and the broader consequences of how the companies they own behave."
The review will put responsible shareholders back in control of the UK economy, Cable will add.
The review will launch this autumn. Key areas it will tackle include:
• What drives market short-termism?
• Do boards set out their long-term objectives sufficiently clearly?
• How can we encourage shareholders to become more engaged in the company's future?
• Do shareholders have sufficient opportunity to vote on takeover bids?
• Do target boards do enough to consider whether the bid represents value for their shareholders in the long-term?
