ExxonMobil: Constructing a Mock Long-Term Plan
39 Pages Posted: 4 Apr 2019
Date Written: March 23, 2019
A diverse group of institutional investors and corporations are driving a movement to encourage corporate CEOs to present their organization’s long-term plan to institutional investors. Long-term plans may be perceived as additive to existing disclosures. Given that companies must comply with mandated disclosures and many provide a wide range of voluntary information, we decided to conduct an experiment. We posed the following question; “Is it possible and, if so, how difficult would it be to construct a mock long-term plan for a company based on information the company has placed in the public domain?” For our experiment, we selected ExxonMobil as the target of our experiment because of what had been learned about the extent of the company’s regulatory and voluntary disclosures during previous research projects. We were able to construct a decent a mock long-term plan that addressed, in varying degrees of completeness and quality, most of the recommended elements of a long-term plan.
Keywords: Capital Allocation, CECP Strategic Investor Initiative, Competitive Advantage, Corporate Governance, ESG, ExxonMobil, FCLTGlobal, Long-Term Plan, Risks and Opportunities, Strategy, Sustainability
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