The Applied Corporate Governance Institute (ACGI) is a not-for-profit organization that advises companies to understand, engage, and succeed with their investors in complex and contested shareholder matters by developing insightful strategies and effective tactics through the use our proprietary predictive analytics and our dedicated Board Advisors with the goal to create the “best, long-term outcome” for all shareholders.
Frequently asked questions by CEOs and Directors:
- How do I proactively avoid a campaign by an engaged investor?
- Are there early warning indicators at least 1-2 years in advance?
- How do I avoid common management mistakes/misjudgments?
- What skills are required during different phases of engagement?
- What data is needed to help make sound decisions?
What Makes Us Unique
Academic-quality Research and Proprietary Predicative Analytics
In partnership with Columbia University and working with distinguished business and legal scholars, we conducted our own peer-reviewed research on engaged shareholders. Utilizing a team of PhDs and scholars from Columbia, Harvard and Wharton, we developed our own proprietary database and predictive analytics to identify vulnerabilities to a potential shareholder engagement. Our company-specific Stewardship Vulnerability ScoreTM is customized to predict potential shareholder activism 18-24 months in advance of an engagement. Our Stewardship Vulnerability ScoreTM provides management and boards insight with respect to Value, Volatility, Vertical and Votes . Below is an illustrative example of our Stewardship Vulnerability ScoreTM.Board of StewardsThe Board of Stewards is a body of renowned CEOs and Board Members with major corporations who have confronted shareholder activists and have committed their time to aid in the research and tool development of the ACGI. This group will serve as advisors to the Institute and their collective experience with engaged investors will inform the development of the Institute and its outputs.Nonprofit MissionThe ACGI is an Institute founded by the Center for Global Enterprise. As such it takes on the nonprofit mission of the CGE. Because the Institute is a nonprofit, it is not driven by outcomes and investments. The lack of financial incentive allows the ACGI to provide thorough and unbiased analysis and advice to companies facing engaged investors.
How We Help
- Conduct a “Stewardship Vulnerability Assessment”;
- Present to the Board of Directors and management at an annual strategy review to highlight the investor environment and the potential vulnerabilities of the firm;
- Develop engagement strategies to proactively address potential investor challenges;
- Facilitate client efforts to build strong relationships with the institutional investor governance community;
- Provide insights into shifts within the corporate governance and investor landscape; and
- Ensure that clients are deploying shareholder engagement best practices
The Applied Corporate Governance Institute began as an Engaged Investor research project. This research was done in collaboration with the Richard Paul Richman Center for Business, Law, and Public Policy at Columbia University. Professors Shane Goodwin, Jefferey N. Gordon, Jesse J. Greene, and Wei Jiang came together to create a comprehensive analytic tool to examine the role of investors and the conflict between short term solutions and long-term strategy. This research was based on the historical development of investors who have gradually gained more and more influence over companies.
To learn more please read the executive summary of the research which is available for download here.
To read the full report please click here.