Clinton: ‘Quarterly Capitalism’ Throws System ‘Out of Balance’

Hillary Clinton assailed corporate boards that allow exorbitant pay packages for executives not based on “credible” assessment of performance.

  • In speech at NYU’s Stern School of Business, the Democratic presidential candidate says good for country to reward all workers, not just top executives
  • “No excuse” that Dodd-Frank pay-ratio rules haven’t been released yet
  • Vows if elected to strive for corporate culture that values long-term growth over short-term gains
    • “I understand that most CEOs are responding to very real pressures from shareholders and the market to turn in good quarterly numbers, and investors are always looking for strong, reliable returns, but it is clear that the system is out of balance. The deck is stacked in too many ways”
  • Criticizes “hit and run” activist shareholders and calls on pension funds, proxy adviser firms to do more to push back
  • Says if elected would order full review of rules on shareholder activism
  • U.S. must take hard look at stock buybacks
  • Pledges, if elected, to look at ways to address “very” short-term trading
  • NOTE: Clinton seeks to raise capital gains taxes to encourage long-term investment, making it more expensive to sell stocks held for less than six years and adding complexity to the U.S. tax system
Earlier: Clinton Adds Capital Gains Complexity With Tax Rise, 6-Year Wait; Hillary Clinton Calls for Investors to Escape ’Tyranny’ of ’Short Termism’

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