Commonsense Principles 2.0: A Blueprint for U.S. Corporate Governance?
Aabha Sharma and Howard Dicker, Weil, Gotshal & Manges LLP
Editor's note: Aabha Sharma is an associate and Howard Dicker is a partner at Weil, Gotshal & Manges LLP. This post is based on their Weil memorandum.
On October 18, 2018, over twenty prominent executives, representing some of America’s largest corporations, pension funds and investment firms, came together to sign Commonsense Principles 2.0 ➚. The signatories include, among other noteworthy individuals, Warren Buffett, Jamie Dimon and Larry Fink. In an open letter, the signatories make “a commitment to apply the Commonsense Principles 2.0 in our businesses” and “hope others will do so as well.” Moreover, while recognizing that there is significant variation among public companies, and that not every principle will be applied in the same manner, the signatories expressed their intent to use the principles to guide their thinking, and encouraged others to do the same.