Tuesday, November 1, 2016, 9:30 AM to 12:00 PM @Gore Recital Hall, University of Delaware : 

​Financial/investing institutions form the bedrock of the U.S.economic system. Without them, the economy can’t grow and our capitalistic system would grind to a halt. However,few believe that our financial/investing institutions work as well as they could. Critics argue that misalignments promote the interests of the financial sector itself above those of society, the real economy and the individual citizen investors whose pensions and savings are entrusted to these institutions. They argue that errant expertise and incentives;gaps in accountability, transparency and governance; poor regulation and a misreading of economics combine to impose a huge stealth tax on individual savings and national economic promise. Further, they say that these structural and governance misalignments create systemic pressure for short termism in the boardroom and within investing institutions.

Stephen Davis, Jon Lukomnik, and David Pitt-Watson, the three authors of What They Do With Your Money: How the Financial System Fails Us and How to Fix It, will be joined by John Bogle, legendary founder of Vanguard, and Jennifer Taub, professor of law,Vermont Law School, for a robust, provocative discussion of how to fix our financial/investing institutions so that they serve individual citizen investors and the real economy.  It is the only time all three authors will be together in the U.S. to present.

Among the issues that will be discussed are: How have short-term oriented capital markets, the scores of financial intermediaries, and executive compensation structures both in financial/investing institutions and in our corporations combined to reduce long-term corporate investment in America? What are the consequences of governance gaps in investing institutions? What about the governance structures of pension plans and their plan sponsors? Should there be a shift in the governance paradigm to give individual citizen investors more transparency and more of a voice?The discussion will also showcase potential solutions that range from the narrow and technical, such as potential revisions to the tax law, to the big and ambitious, such as fresh models of governance and transparency for financial/investing institutions and for pension/savings plans.Please join us for a fascinating discussion peering behind the curtain of finance to understand why the capital market works the way it does. And how it can potentially change for the better.

PARTICIPANTS

  • John C. Bogle, Founder, Vanguard
  • Stephen M. Davis, Associate Director and Senior Fellow, Harvard Law School Program on Corporate Governance
  • Jon Lukomnik, Executive Director, IRRC Institute; and Managing Partner, Sinclair Capital LLC.
  • David Pitt-Watson, former head of the Hermes shareholder activist funds in Europe, and Executive Fellow of Finance, London Business School
  • Jennifer Taub, Professor of Law, Vermont Law School

    Moderator: Charles M. Elson, director, John L. Weinberg Center for Corporate Governance, University of Delaware; Edgar S. Woolard Chair in Corporate Governance; and professor of finance.

DE CLE/CPE credits: DE CLE credits will be provided. CPE credits will be provided by our event partner, Sallie Mae. There is no charge for the program, which includes a complimentary lunch. A book signing will take place after the program and copies of the book will be available for purchase.

To Register go to: https://wccg-financialsystem2016.eventbrite.com

Invitation

UDaily Pre-Event article

News Journal; Pre-Event Article

Program Materials (7)

1.      “Lukomnik Wants To Make Capitalism Better — Tells Institutional Investors How,” Christopher P. Skroupa, Forbes, June 7, 2016

2.      “Solving the problem of short-termism,” Jon Lukomnik, Ethical Boardroom, September 5, 2016

3.      “What We Lose When Giant Investment Funds Run All Our Companies,” Davit Pitt-Watson,Harvard Business Review, July 19, 2016

4.      “Count DC plans among Wells Fargo’s enablers,” Stephen M. Davis, Pensions & Investments, October 5, 2016

5.      Able But Not Willing: The Failure of Mutual Fund Advisers to Advocate for Shareholders’ Rights, Jennifer Taub, Vermont Law School.March 31, 2009, Journal of Corporation Law, Vol. 34, No. 3, 2009|

6.      Money Managers in the Middle: Seeing and Sanctioning Political Spending after Citizens United,Jennifer Taub, Vermont Law School, February 15, 2012, New York University Journal of Legislation and Public Policy, Vol. 15, p. 101, April 2012, Vermont Law School Research Paper No. 02-12

7. The Sophisticated Investor and the Global Financial Crisis, Jennifer Taub, in Corporate Governance Failures: The Role of Institutional Investors in the Global Financial Crisis, James Hawley, Shyam Kamath and Andrew Williams eds. (Philadelphia, PA: University of Pennsylvania Press, 2011)

Institutional Investor Post-Event Article

Investopedia Post-Event Article

ThinkAdvisor Post-Event Article

UDaily Post-Event Article

CII Alert (Post-Event) – “Does the Financial System Work? University of Delaware Panel Offers its Two Cents” (membership required)

Video of Event