NEW YORK, Feb 13, (APP/AFP): Wall Street is hoping to reset the
debate on US corporate governance following a wave of shareholder activism that has challenged many of the biggest companies.
Since August, JPMorgan Chase chief executive Jamie Dimon has been
working with leaders in finance and investing to hash out guidelines on best practices for corporate governance, according to people familiar with the talks.
The initiative follows a rising wave of investor activism that has roiled numerous large companies, including JPMorgan, which has successfully beaten back shareholder efforts in recent years to split the chief executive and chairman roles.
Other big shareholder campaigns have targeted Apple, PepsiCo and insurer AIG, which Thursday announced it installed activists John Paulson and Carl Icahn on its board, removing the chance of them mounting proxy fight against the management.
Dimon has convened meetings at JPMorgan’s Park Avenue headquarters with financial luminaries that include investing legend Warren Buffett, BlackRock chief Laurence Fink, Fidelity chief executive Abigail Johnson, as well as executives from Vanguard, Capital Group and Canadian pension fund CPPIB, said people close to the talks.
The working group has so far produced a draft, but a final version is not expected for another two or three months. The initiative was secret until news of the meetings were reported by financial media.
Key questions addressed by the group include: How many members should be on the board of directors? Should the role of chief executive and chairman be held by the same officials? What should be the key factors in setting corporate compensation?