The Long-Term Stock Exchange, or LTSE, has filed a rule proposal designed to create long-term value for listed issuers. As of yet, I do not believe there are any companies listed on the LTSE, but it was only recently approved as a stock exchange. The rule proposal outlines the following proposed policies:

Long-Term Stakeholder Policy: The proposed rules would require that each LTSE-Listed Issuer adopt and publish a Long-Term Stakeholder policy explaining how the issuer operates its business to consider all of the stakeholders critical to its long-term success. At a minimum, this policy must include a discussion of:

  • the stakeholder groups the LTSEListed Issuer considers critical to long-term success,
  • the LTSE-Listed Issuer’s impact on the environment and its community,
  • the LTSE-Listed Issuer’s approach to diversity and inclusion,
  • the LTSE-Listed Issuer’s approach to investing in its employees, and
  • the LTSE-Listed Issuer’s approach to rewarding its employees and other stakeholders for contributing to the LTSE-Listed Issuer’s long-term success.

Long-Term Strategy Policy: The proposed rules would require that each LTSE-Listed Issuer adopt and publish a Long-Term Strategy Policy explaining how the LTSE-Listed Issuer prioritizes long-term strategic decision-making and long-term success. The Long-Term Strategy Policy must define the LTSE-Listed Issuer’s long-term time horizon, and include a discussion of how this time horizon relates to the LTSE-Listed Issuer’s strategic plans, how the LTSEListed Issuer aligns success metrics with that horizon, and how it implements long-term prioritization throughout the organization.

Long-Term Compensation Policy: The proposed rules would require that each LTSE-Listed Issuer adopt and publish a policy explaining the LTSE-Listed Issuer’s alignment of executive financial and non-financial compensation and of board compensation with the LTSE-ListedIssuer’s long-term success and long-term success metrics.

Long-Term Board Policy: The proposed rules would require that each LTSE-Listed Issuer adopt and publish a policy explaining the engagement of the LTSE-Listed Issuer’s board of directors in the LTSE-Listed Issuer’s long-term focus, including discussion of whether the board and/or which board committee(s), if any, have explicit oversight of and responsibility for long-term strategy and success metrics.

Long-Term Investor Policy: The proposed rules would require that each LTSE-Listed Issuer adopt and publish a policy explaining how the LTSE-Listed Issuer engages with long-term investors.