Rubio Report: Big Vision For Changing Corporate Short-term-ism

Marco Rubio has been catching headlines this week following a report he issued about the failures of the current economic and regulatory system to promote long-term investing by US corporations and ways to start fixing it. Financial experts say this report is more unique than others that have come out.

Marco Rubio

United States Senate [Public domain], via Wikimedia Commons

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Troy Keller notes:

"There have been a number of corporate reform proposals over the last 12 months, ranging from calls to break-up monopolies to requiring that large corporations be federally chartered.  Senator Rubio's differs from these in many ways but in particular because he is not actually proposing specific changes. Rather his position paper lays out a general policy goal for promoting long-term investing by corporations.   It is essentially a lengthy critique of a trend sometimes referred to as short-termism.  While Rubio doesn’t (yet) offer specific policies, his positions are sophisticated in that he acknowledges how US public companies operate within an ecosystem of financial intermediaries and face strong, structural pressures to return money in the short term even if that means sacrificing attractive longer term investments.  Any policy changes would need to take into account these external pressures," Keller says.

Troy Keller is an attorney at the international law firm Dorsey & Whitney with a deep experience in M&A, corporate governance and government relations along with invaluable insights derived from extensive service in-house at a premier public corporation and deep knowledge of the chemical industry. Prior to joining Dorsey, Keller worked for Huntsman Corporation (NYSE: HUN), a global manufacturer and marketer of differentiated and specialty chemicals, where he served as Vice President, Government Affairs and Associate General Counsel since 2015. From 2008 to 2015, he served at Huntsman as Vice President, Associate General Counsel & Assistant Secretary and from 2005 to 2008 as Senior Corporate Counsel & Assistant Secretary. Before Huntsman, Keller was an attorney at Qwest Communications International, with responsibility for all aspects of SEC reporting obligations and corporate governance. He says Senator Rubio's proposal is different from most.



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver