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*** This Event was by invitation only. ***
(ECGI Institutional and Patron Members may submit attendance requests by email however spaces are limited)
The Roundtable focused on loyalty shares as a legal solution for encouraging long-term ownership, a concept that is promoted by policy makers, including the European Commission, some institutional investors and issuers. Loyalty shares that confer additional voting rights have a long tradition in France and were recently introduced in Italy. They are also expected to be introduced in an ongoing reform of Belgian company law. Loyalty shares with “tenure voting” or “time-phased voting” are also found in the United States. They have gained prominence recently through the proposal to create a “Long Term Stock Exchange” (LTSE). Loyalty shares might also confer additional cash-flow rights to long-term holders. The ECGI Roundtable will critically examine these developments. What are the practical difficulties associated with the operation of loyalty share structures? Does the default rule matter? Do IPO rules matter? Do loyalty shares really promote long-term ownership or do they serve as a “stealth” entrenchment device for controlling shareholders or boards? Are loyalty shares less transparent than other control-enhancing mechanisms, for example dual-class shares?
Background Reading
1. Bolton, P., & Samama, F. (2013). Loyalty‐Shares: Rewarding Long‐term Investors. Journal of Applied Corporate Finance, 25(3), 86-97. (Access here)
2. Cremers, Martijn and Pareek, Ankur and Sautner, Zacharias. Short-Term Investors, Long-Term Investments, and Firm Value (March 14, 2017). (Access here)
3. Becht, Marco and Kamisarenka, Yuliya and Pajuste, Anete. Loyalty Shares with Tenure Voting - a Coasian Bargain? Evidence from the Loi Florange Experiment (April 2018). (Access here)
4. Bebchuk, L. A., & Kastiel, K. (2017). The Untenable Case for Perpetual Dual-Class Stock. Va. L. Rev., 103, 585 (Access here)
5. Bebchuk, Lucian A. and Kastiel, Kobi. The Perils of Small-Minority Controllers (February 1, 2018). Forthcoming, Georgetown Law Journal. (Access here)
6. Croci, Ettore. Controlling-Enhancing Mechanisms: Loyalty Shares and Multiple-Voting Shares in Italy (June 2018). (Access here)
Organisers
Marco Becht, Solvay Brussels School, ECGI and CEPR
Luca Enriques at the University of Oxford and ECGI
10:30: Registration
10:45: Welcome & introduction
11:00 - 12:15: Session 1
12:15 - 13:15: Lunch
13:15 – 14:30: Session 2
14:30 - 14:45: Coffee Break
14:45 – 16:00: Session 3
16:00 - 16:15: Coffee Break
16:15 - 17:30: Session 4
17:30 – 17:45: Coffee Break
17:45 – 18:45: Session 5
18:45 - 19:00: Conclusion and Summing Up
19:00 - 19:30: Drinks reception
[Dinner: 19:45 for 20:00]
Contact
Programme queries should be directed to Marco Becht (Marco.Becht@ecgi.org)
or Luca Enriques (luca.enriques@law.ox.ac.uk)
Practical queries should be directed to Elaine McPartlan (roundtables@ecgi.org)
Financial Support from:
Information

Loyalty Shares
Welcome & Introduction
Loyalty Shares: Rationale
Is “Short-Termism” Real?
Speakers:
Is “Short-Termism” Real?
Zacharias Sautner, Frankfurt School of Finance
Background reading:
Cremers, Martijn and Pareek, Ankur and
Sautner, Zacharias, Short
-
Term Investors, Long
-
Term
Investments, and Firm Value (March 14, 2017). Available at SSRN:
Speakers
Loyalty Shares –An Overview
Speakers:
Loyalty Shares –An Overview
Fred Samama, Amundi
Background reading:
Bolton, P., & Samama, F
. (2013). Loyalty-Shares: Rewarding Long-term Investors. Journal of
Applied Corporate Finance, 25(3), 86
-
97.
Speakers
Lunch
Loyalty Shares in France
Loyalty Shares in France –Overview
Speakers:
Loyalty Shares in France –Overview
Geneviève Helleringer, ESSEC and Oxford
Speakers
The Loi Florange –A Coasian Bargain?
Speakers:
The Loi Florange –A Coasian Bargain?
Anete Pajuste, Stockholm School of Economics Riga
Background reading:
Becht, Marco, Anete Pajust
e and Yuliya Kamisarenka
(2018),
Loyalty
Shares with Tenure
Voting
–
a Coasian Bargain?
Evidence from the Loi Florange Experiment. Mimeo
Speakers
Coffee Break
Loyalty Shares in Italy
Loyalty Shares in Italy –Overview
Speakers:
Loyalty Shares in Italy –Overview
Ettore Croci, Università Cattolica del Sacro Cuore
Speakers
Italian Loyalty Shares in Practice
Speakers:
Italian Loyalty Shares in Practice
Luca Garavoglia, Chairman, Davide Campari-Milano S.p.A.
Speakers
Coffee break
Loyalty Shares in Belgium and the Netherlands
Loyalty Shares and the Belgian Company Law Reform
Speakers:
Loyalty Shares and the Belgian Company Law Reform
Philippe Lambrecht, Secretary General,
FEB
-
VBO
and Université catholique
de Louvain
Speakers
Loyalty Shares in the Netherlands
Speakers:
Loyalty Shares in the Netherlands
Alessio Pacces, University of Rotterdam
Speakers
Coffee Break
Loyalty Shares in the United States
Are Loyalty Shares a viable alternative to the “The Untenable Case for Perpetual Dual-Class Stock”?
Speakers:
Conclusion and Summing Up
Speakers
Presentations
Is “Short-Termism” Real?
Is “Short-Termism” Real?
Zacharias Sautner, Frankfurt School of Finance
Background reading:
Cremers, Martijn and Pareek, Ankur and
Sautner, Zacharias, Short
-
Term Investors, Long
-
Term
Investments, and Firm Value (March 14, 2017). Available at SSRN:
Speakers
Loyalty Shares –An Overview
Loyalty Shares –An Overview
Fred Samama, Amundi
Background reading:
Bolton, P., & Samama, F
. (2013). Loyalty-Shares: Rewarding Long-term Investors. Journal of
Applied Corporate Finance, 25(3), 86
-
97.
Speakers
Loyalty Shares in France –Overview
Loyalty Shares in France –Overview
Geneviève Helleringer, ESSEC and Oxford
Speakers
The Loi Florange –A Coasian Bargain?
The Loi Florange –A Coasian Bargain?
Anete Pajuste, Stockholm School of Economics Riga
Background reading:
Becht, Marco, Anete Pajust
e and Yuliya Kamisarenka
(2018),
Loyalty
Shares with Tenure
Voting
–
a Coasian Bargain?
Evidence from the Loi Florange Experiment. Mimeo
Speakers
Loyalty Shares in Italy –Overview
Loyalty Shares in Italy –Overview
Ettore Croci, Università Cattolica del Sacro Cuore
Speakers
Italian Loyalty Shares in Practice
Italian Loyalty Shares in Practice
Luca Garavoglia, Chairman, Davide Campari-Milano S.p.A.
Speakers
Loyalty Shares and the Belgian Company Law Reform
Loyalty Shares and the Belgian Company Law Reform
Philippe Lambrecht, Secretary General,
FEB
-
VBO
and Université catholique
de Louvain
Speakers
Loyalty Shares in the Netherlands
Loyalty Shares in the Netherlands
Alessio Pacces, University of Rotterdam
Speakers
Are Loyalty Shares a viable alternative to the “The Untenable Case for Perpetual Dual-Class Stock”?
Are Loyalty Shares a viable alternative to the “The Untenable Case for Perpetual Dual-Class Stock”?
Kobi Kastiel, Harvard Law School
Background reading:
Bebchuk, L. A., & Kastiel, K. (2017). The Untenable Case for Perpetual Dual
-
Class Stock. Va. L. Rev.,