NAREIT has joined other industry groups in the creation of a coalition to promote corporate governance policies focused on long-term shareholder value.
The organization, the Corporate Governance Coalition for Investor Value, was formed to ensure that its member organizations—including the U.S. Chamber of Commerce and the Financial Services Roundtable—have a voice in the development of corporate governance regulations. In a letter sent to Securities and Exchange Commission Chair Mary Jo White on July 2, the coalition said corporate boards have seen their oversight role eroded by activist investors. The coalition also expressed concern that activist investors make short-term decisions at the expense of the long-term health of companies.
“These campaigns often involve idiosyncratic agendas that are wholly unrelated to increasing long-term value for shareholders,” the coalition wrote.
(Contact: Victoria Rostow at vrostow@nareit.com)