Emerging Practice in Long-Term Plans: How CEOs Talk About the Long Term

Abstract

In this paper, we identify content elements essential to an effective investor-facing CEO-delivered long-term plan. We also set out key themes that leading CEOs have addressed in long-term plan presentations delivered at CEO-Investor Forums. We identify why each theme is an enduring subject of investor interest and provide examples of CEO presentations that were well-received by investors. We also provide suggestions of key additions that CEOs can make to enhance the utility of disclosures on these key themes:

• Risk factors and mega-trends: highlights the presentation by Delphi Automotive
• Corporate governance: highlight presentations by Medtronic and Merck
• Capital allocation: highlights the presentation by Becton Dickinson
• Human capital management: highlights the presentation by BD
• Shareholder engagement: highlights the presentation by Merck, Telia and Prudential

Keywords: ESG, Long-Term, Corporate Governance, Human Capital, Mega-Trends, Shareholder Engagement