Trian CIO Ed Garden shared his views on corporate governance,
On changes happening in corporate governance: "Something big is happening in the public equity markets, and that is that owners are acting like owners," he said. "For the better part of the last 100 years, that wasn't the case. Public share owners felt that if they didn't like what was happening at the company, their only option was to sell. And there was a huge gulf between the owners and the managers. All that is changing."
On why the changes are occurring: "I think the biggest reason is the transfer of wealth that's happened from public shareowners to private equity over the last say, 40 years," Garden added.
"There's something in that ownership mentality, in the boardroom dynamic that creates really good results," he said.
Garden is the chief investment officer and co-founder of Trian Partners.
He also discusses:
- General Electric.
- Procter & Gamble.
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Correction: This story was revised to correct the spelling of Procter.