LOGO: Truthdig: Drilling Beneath the Headlines. A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman. Winner 2013 Webby Awards for Best Political Website
May 22, 2013

 Choose a size
Text Size

Trending:     chris hedges     economy     elizabeth warren     politics     robert scheer
Most Read

Rise Up or Die

Lock Up Washington

Revenge of the Bear: Russia Strikes Back in Syria

How America Became a Third World Country: 2013-2023

California Man Sues Officers He Says Nearly Beat Him to Death

Most Comments
Most Emailed

Reports
 * NEW! * The Path of Hubris and War
 * NEW! * Glaciers Are Melting Slowly but Surely

Ear to the Ground

A/V Booth

Arts & Culture
Act of Congress
Daily Rituals
The Girls of Atomic City

Digs

Truthdig Bazaar more items

 
Ear to the Ground

Gore: End Quarterly Reporting, Save the World

Email this item Email    Print this item Print    Share this item... Share

Posted on Feb 16, 2012
simone.brunozzi (CC-BY)

Gore says the goal is to reform capitalism to make it more sensitive to social and environmental issues.

Al Gore has yet another good idea that’s likely to be ignored by the business and political community: In the interest of economic and environmental sustainability, companies should be encouraged to focus on long-term rather than short-term investment goals by dropping the requirement to post quarterly earnings. Executive pay and bonuses could be linked to long-term performance, too.

Gore is chairman of Generation Investment Management (GIM), a London-based financial firm that pushes for socially and environmentally responsible investment practices. GIM has published a paper that suggests a number of such reforms. —ARK

The Guardian:

[Gore] said: “Some of the ways in which [capitalism] is now practised do not incorporate sufficient regard for its impact on people, society and the planet. Capitalism in its current form is creating and fostering numerous challenges, not least short-termism, over-reliance on GDP growth as a primary metric of prosperity, rising inequality, increasing volatility in the global financial market, and growing contributions to the climate crisis.”

… In order to ensure that companies are run on a more sustainable basis, the pay and bonuses for senior managers should also be aligned with long-term rather than short-term performance, and include environmental and social indicators, according to the white paper. At present, “most compensation schemes emphasise short-term actions disproportionately and fail to hold finance professionals and corporate executives accountable for the ramifications of their decisions over the long term. Instead, financial rewards should be paid out over the period during which these results are realised, and compensation should be linked to fundamental drivers of long-term value, employing rolling multiyear milestones for performance evaluation.”

Read more

More Below the Ad

Advertisement


New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

Kanomi Blake's avatar

By Kanomi Blake, February 18, 2012 at 8:16 am Link to this comment

Sustainable capitalism is an oxymoron; a parasite always kills its host in the end.

Says someone who is either ignorant or a shill: “If a majority of Americans quickly invested the minimum in Generation Investment Management (GIM), that would send a profound message to Wall Street.” It sure would—it would tell them that people are idiots and the next bubble to exploit is “green” investing.

But can the “majority of Americans” even invest in Gore’s gambit? When carbon neutral pigs fly to Davos on their private jets! How many Americans, beaten down by unfair taxes, usurious debt slavery, hidden inflation, and the rest of the economic deviltry of the corporate elites—of whom Al “Carbon Neutral” Gore is undeniably one—can actually afford to invest in Gore’s conscience-washing machine?

“With a US$3 million minimum investment, [Generation Investment Management] will market its services to pension funds, charitable foundations, and wealthy private investors.” - source

So, that’s basically nobody but the .001%.

And what are the planet-loving .001% buying when they get into “Sustainable capitalism” with the Al Gore Show? Their money goes to vaccine peddlars, Taiwanese semiconductor manufacturers, and multinational purveyors of household chemicals. The only thing green about this portfolio is its management fee. And anybody stupid enough to pay ex-Goldman Sachs gamblers to gamble with their money deserves to be fleeced.

That’s right, those crims again. Gore co-founded Generation with “David Blood a former CEO at Goldman Sachs Asset Management, Mark Ferguson and Peter Harris, also former Goldman Sachs executives…”

Blood, Gore, and Goldman Sachs - sounds like a zombie gangster movie.

“The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money…”  —Matt Taibbi

Al Gore is a front-man for a Goldman Sachs greenwashing machine. If a epically mendacious liar like this man is talking about a bunch of pie-in-the-sky reforms, which he knows full well are never going to happen in ten thousand years, then the only purpose these comments serve are to bring attention to his fund: to bring more money in from guilty rich fools to hand over to his crew of management fee-collecting gamblers. He is selling green snake oil, and you are snapping it up.

I don’t know specifically how the fee structure of GIM exactly, but the way many of these funds are set up, the management takes 2% of thet total amount of money managed every year as their fee, and then they take 20% of the profits earned by the fund off the top—the classic 2 and 20 hedge fund set up. By simply understanding basic math, you can see that the more of other people’s money they have to gamble with, the more they make in short-term management fees regardless of performance.

If their long positions are ultimately unsustainable and the fund ultimately blows up, because they invested in junk bonds or dotcoms or fraud-soaked mortgage securities or green tech hype machines, it doesn’t matter to them if they’ve been collecting multi-million dollar “management” fees before the principle vanishes.

This is what they call the “free market”, but the game is rigged, the markets are fixed, and nothing in life is free.

Report this

By Marian Griffith, February 18, 2012 at 3:03 am Link to this comment
(Unregistered commenter)

Quarterly, or even more frequent (as is sometimes discussed) reporting only serves the twitchiness and feeding frenzy of the stock markets and all the countless derivatives that serve no economic purpose.

Returning to annual reporting is a tiny step in the right direction.

Better would be if all those stock portofolios and bonusses that the CEO grant themselves could be paid out only after retirement. Until then they would have to rely on a wage just like everybody else.
It would encourage all those ‘executive officers’ to be a lot more responsible with the companies they are leading. Because right now there is far too much ‘execute’ in their jobs and not enough ‘officer’ by far.

Report this
EmileZ's avatar

By EmileZ, February 17, 2012 at 1:29 am Link to this comment

@ PeopleOVERgreed

You are joking right???

We already have pension plans invested and dependent on the health of the Dow Jones etc., now we should get activists to become Wall Street stakeholders.

“hey, it’s a free-market”

“invest in your conscience”

You are a funny guy in every sense of the word (including smell).

Report this
PeopleOVERgreed's avatar

By PeopleOVERgreed, February 16, 2012 at 1:27 pm Link to this comment

If a majority of Americans quickly invested the minimum in Generation Investment Management (GIM),  that would send a profound message to Wall Street.

I believe it is time to fight fire with fire using activist hedge funds to [peacefully] disrupt the financial market through investment demonstrations.

Up to now there are zero consequences on Wall Street as the markets have their way until the big slow battleship of public opinion gains momentum, but, by them its too late and spin doctors cover the tracks.

Having one or more activist hedge funds is the perfect tool to put the financial fear in the hearts and minds of multi-national corporations and their share-holder values.

There is just one fundamental problem. People, citizen activist need to put their investment money where their mouths are on Wall Street. Activist hedge funds need to be big enough to rock the market. Without individual private investment the ability to police the market is lost.

Say for example you are upset that Apple hides behind its Chinese supply-chain accused of child and slave labor issues. Instead of buying that next generation Apple product. Invest that money instead in an activist hedge fund such as Generation Investment Management (GIM). If enough individual investor do this and word gets out, the message to Apple is loud and clear: opportunity LOST. This scenario applies to any product or service from a publicily traded company. Eventually a hedge fund such as Generation Investment Management (GIM), has the financial means as a market mover to make market driven financial protests and then the fireworks really begin to fly.

But, hey its a free-market. Nobody said activist could not band together and invest their conscience.

Report this
Newsletter

sign up to get updates


 
 
 
 
Join the Liberal Blog Advertising Network
 
 
 
 
 
 
 

A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
© 2013 Truthdig, LLC. All rights reserved.