Chapter 6

Afterword: Final Thoughts and Future Directions

What is wrong with the British and American system is that far too many shareholders, both institutional and individual, do not behave like owners.

Rupert Pennant-Rea, 1990

What progress, if any, has there been since this diagnosis described in The Economist twenty years ago?

The Treasury committee investigating the financial meltdown for the UK seemed to think Pennant-Rea was still right.

“ Institutional Investors have failed in one of their core tasks, namely the effective scrutiny and monitoring the decisions of boards and executive management in the banking sector, and hold them accountable for their performance.¹ ”

So does the UN.

“ We also believe that one of the most important lessons from the crisis is that institutional investors responsible ownership needs to be strengthened in order to be fit for purpose.² ”