One of the world’s most prominent corporate governance activists since the 1970s, Bob Monks talks about engagement, hedge fund activists, private equity and why ‘discouraged’ is not part of his vocabulary.
Responsible Investor: What are the lessons of 35 years in corporate governance activism?
Bob Monks: I have the perspective of a long period of time in this area and I can recommend it. I feel that what I have been doing is worthwhile and I look forward to getting up each morning and continuing it. That said, I have to say that the record of accomplishment is very slender and there have been many apparent successes that have turned out to be just that: apparent.
Many of the difficulties have occurred in the United States. I think that in the United Kingdom a great deal has been done and I am very encouraged by trends in Europe also. Many of the problems I put at the door of the current administration of the United States, which has perceived the idea of governance as being hostile to the governance of companies. As long as progress in this area is defined as a battle between management and everybody else, success is going to be elusive. If you win such a battle you are going to cause huge damage. This can’t be fought as a battle. It has to be seen as something in which all the parties have an interest and a stake in trying to create what people in the UK would call sustainable corporations.
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