FT Letter to the Editor: Let’s not be relaxed about governance

October 23, 2019

In the News

In a letter to the editor of the Financial Times, our Co-Founder and CEO Teresa Barger wrote about the importance of good corporate governance, shareholder democracy and the concept of one share, one vote.

“Many of us concerned with good stewardship of other people’s money were shocked to find that the editorial board of the Financial Times had thought deeply and come up with three pillars of sustainable growth, one of which was a “more relaxed attitude to two-tier shareholder structures” (“How to build a more responsible capitalism”, October 14).

When we stewards of capital say we invest on environmental, social and corporate governance (ESG) principles, we are dead serious about the G for governance. Allowing founders and families to have asymmetric voting rights is antithetical to shareholder democracy and the concept of one share, one vote. It prevents investors from holding the insiders accountable for their actions. It makes a sham of our attempts to be good stewards of our investors’ money.

The FT can be a powerful voice for good governance. I respectfully believe you missed the opportunity to do that in your recommendation of a more relaxed approach to a pervasive problem. I urge you to reconsider.”

Teresa Barger, CEO of Cartica Managment

For the letter in the Financial Times click here.