Silicon Valley’s high-tech denizens complain the public stock markets are marred by a narrow focus on short-term earnings and profits. Now they are actually doing something about it, by launching a new framework for corporate governance, investing and trading called the Long-Term Stock Exchange. Backed by top Valley figures such as venture capitalist Marc Andreessen and LinkedIn co-founder Reid Hoffman, the LTSE says it plans to seek regulatory approval by the end of this year to become the newest U.S. stock exchange. ...
Prominent Silicon Valley executives and investors are backing a new stock exchange dubbed the Long-Term Stock Exchange (LTSE). The exchange is designed to combat obsessions with short-term earnings and profits. Shareholders in companies listed on the exchange would accept a "tenure voting" system where longer-term shareholders have more say over the governance of a company. Tying executive pay to short-term financial gains would also be prohibited. The exchange will reportedly seek regulatory approval by the end of the year. Critics say tenure voting enables managers to duck short-term accountability.