Amalgamated Bank is proud to play a leadership role in successful corporate initiatives and strong shareholder activism, holding corporations to rigorous environmental, social, and governance standards. The LongView Funds use our power as investors to encourage corporate boards to pursue sound governance policies, hold portfolio companies to high standards of social and environmental practices, and enhance shareholder value.
Promoting and Protecting Shareholder Value
Our LongView Funds are guided by the investment belief that better managed companies will deliver shareholders better and less volatile returns over the long term. Accordingly, our LongView and separately managed strategies seek to provide investors with access to both passively and actively managed equity market returns, while also promoting sound governance practices that we believe will promote shareholder value creation.
Since LongView Funds’ founding in 1992, we have exercised “Advocacy Through Ownership.” We monitor our portfolios for environmental, social, and governance (“ESG”) practices and encourage best practices. We vote proxies of our portfolio holdings according to rigorous standards of good governance. However, our engagement with companies goes beyond passively casting votes on corporate proxies. When we see underperforming companies or detect practices that may place our investments at risk, we take action. We engage our portfolio companies – through dialogue, shareholder proposals, and occasional legal action – to advocate practices that will protect and promote shareholder value. See our Corporate Governance Timeline
The LongView Principles
Our proxy voting and engagements with companies are driven by the following key principles that we believe define good governance and enhance the prospects for sound shareholder returns.
Board election standards and practices should ensure that Board members are accountable to shareholders. Management’s goals and objectives should be aligned appropriately with the Board’s overall strategy and reviewed regularly.
Prudent Risk Oversight
Boards and management teams should develop corporate practices that are viable over the long-term and minimize the risk of potential costs, damages, and other liabilities from operational, legal, and regulatory risks inherent in the business.
Social and Environmental Awareness
Companies should minimize negative externalities. Short-term business practices (e.g. pollution) might generate long-term risks for a company (e.g. legal, regulatory, or operational) and impose costs elsewhere in our portfolio and economy, thereby undermining our interests as long-term investors.
Alignment of Compensation Practices with Sustainable Value Creation
Executive compensation should be aligned with firm performance and create appropriate incentives for sustainable, long-term growth.
Collaborating for LongView Value
In our work to promote good governance throughout the financial markets, the LongView Funds have long been active members of the Council of Institutional Investors (CII), a coalition of institutional investors with over $1.3 trillion in assets. The LongView Funds are also proud to be founding signatories of the United Nations Principles for Responsible Investment.
For additional information, please see our most recent Shareholder Initiatives Report and Proxy Voting Guidelines.