The recently approved Long-Term Stock Exchange filed with the SEC proposed listing standards for LTSE-listed companies aimed at facilitating a long-term focus and value creation. If adopted, listed companies would be required to adopt and publish policies that the LTSE deems consistent with enumerated long-term-orientation principles.
The policies, which are detailed in the proposed standards, consist of:
- Long-Term Stakeholder Policy explaining how the company operates its business to consider all of the stakeholders critical to its long-term success
- Long-Term Strategy Policy explaining how the company prioritizes long-term strategic decision-making and long-term success
- Long-Term Compensation Policy explaining the company’s alignment of executive and director compensation with the company’s long-term success and long-term success metrics
- Long-Term Board Policy explaining board engagement in the company's long-term focus, including discussion of whether the board/board committee(s) have explicit oversight of and responsibility for long-term strategy and success metrics
- Long-Term Investor Policy explaining how the Company engages with long-term investors
The proposed standards require listed companies to review each of the policies at least annually and to make them available on or through the corporate website. This post first appeared in the weekly Society Alert!