Swiss companies should reward investors willing to hold their shares for at least three years to encourage loyalty, according to the chairmen of Clariant AG and Leonteq AG.
Long-term investors should be paid a “sustainability premium” in the form of a special dividend, said Rudolf Wehrli, 64, chairman of Muttenz, Switzerland-based chemicals maker Clariant AG, at a conference in Zurich today.
“We all wish for long-term investors,” Wehrli said. “It’s not buy and hold anymore, but take the money and run,” as more investors focus on short-term performance, he said.
The average holding period for shares in Switzerland is seven to eight months, Peter Forstmoser, 70, former chairman of Swiss Re Ltd., the world’s second-biggest reinsurer, said at the conference. Forstmoser is chairman of holding company Leonteq and Zug, Switzerland-based real estate management company Hesta AG.
A loyalty premium could make it more attractive for pension funds and life insurers to invest longer term, Forstmoser said.