About the joint CPPIB and McKinsey initiative Focusing Capital on the Long Term
In early 2013, the CPP Investment Board (CPPIB) and McKinsey & Company began a joint effort to set out the case for institutional investors and corporate boards to focus on long-term value creation. The initiative, Focusing Capital on the Long Term, was formally launched today at the 2013 Institute of Corporate Directors (ICD) National Conference. The ICD is the pre-eminent organization in Canada for directors in the for-profit and not-for-profit sectors.
With a mandate to contribute to the long-term sustainability of the Canada Pension Plan, a multigenerational fund belonging to the 18 million Canadians who are current and future beneficiaries, CPPIB has a compelling interest in driving a return to long-term fundamentals in the investing and business worlds. Under the leadership of Mark Wiseman, CPPIB is committed to encouraging market participants to adopt longer-term perspectives.
Having witnessed the benefits of long-term thinking in Asian economies for more than 20 years, McKinsey's Dominic Barton has been a leading advocate of the need for long-term thinking and published a landmark article on the issue, "Capitalism for the Long Term," in the Harvard Business Review in 2011.
During 2013, CPPIB and McKinsey will continue to engage with leading institutional investors and corporate directors to identify structures and metrics that support longer-term behaviours and enhance long-term value creation. In 2014, they will release their initial recommendations and push for the adoption of behaviours and mindsets that will foster a significantly longer-term perspective across the investment industry and in the boardroom.
About CPP Investment Board
CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2013, the CPP Fund totalled $183.3 billion. For more information about CPP Investment Board, please visit www.cppib.com.
About McKinsey & Company
McKinsey & Company is a global management consulting firm dedicated to helping the world's leading organizations address their strategic challenges. With consultants deployed in more than 60 countries, McKinsey advises on strategic, operational, organizational and technological issues. The Canadian Practice was launched in 1968 and has offices in Toronto, Montreal and Calgary.
For more information, please visit us at www.mckinsey.com.
(i) McKinsey and CPPIB conducted a global survey of board members and executives using the McKinsey Quarterly survey panel. 1,038 people completed the survey: 71% were responding as a C-level executive, 29% as an independent Board member; 64% either work as executives, at or serve as board members for, privately held companies, 29% from publicly-listed companies; 34% are located in Europe and 30% are located in North America; 54% of respondents were from companies with revenues above $100m. All data quoted is for respondents from companies with revenues above $100m.
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