Mr D A Walker, an Executive Director of the Bank, comments on some aspects of the relationship between the City and industry, and in particular on how far the financial structure supports long-term development. In the context of the concern felt by many companies about the stability of their shareholder structure, he stresses the need for company boards to devote time and effort to fostering relations with their major institutional shareholders.
Mr Walker goes on to examine the proposition that discretionary managers of pension funds do not focus adequately on the long term, and argues that there can be a proper role for company boards in influencing the overall risk strategy of their pension funds by seeking to ensure that the trustees are not needlessly or inappropriately risk-averse.
City and industry - Speech by D A Walker at the CBI Annual Conference