Today I had the opportunity to participate for the first time in the Peter Drucker Forum in Vienna.
Quite an event!
I argued that the performance of our societies and our economies would improve if we allow for more diversity of legal company structures. The standard company model, with dispersed ownership in the stock market, fails on three accounts. It has difficulty solving the agency problems. That is making sure that managers interests are aligned with the goals of the owners. It succumbs to short term pressures and the tiranny of capital markets and, third, it has a hard time establishing a company purpose, because of the different time horizons and interests of investors.
I explained how companies which have a reference shareholder, like “la Caixa” Foundation, can solve these three problems and achieve sustainable competitive advantage.
It was a pleasure to participate. Thanks to the organizers!
(I attach a speech on the subject that I gave, precisely in Vienna, in May 2019)