Listing on LTSE

LTSE is working to create its own modern, SEC-regulated stock exchange, designed to help build lasting businesses and empower long-term focused investors.

Frequently asked questions

All information and characterizations of LTSE are subject to SEC approval and effectiveness.
  • What's the problem we're solving for?
  • We believe that current public markets don't always serve the needs of today's modern companies. Despite a growing economy, and a growing number of total companies, U.S. public listings have fallen by roughly 50 percent between 1996 and 2016 (Credit Suisse). There are multiple reasons companies are choosing to stay private - such as access to an abundance of private capital and the rising cost of being a public company - but LTSE Listings believes one of the most significant is the overwhelming pressure many public companies feel to manage to the quarter, potentially at the expense of long-term growth.

    • In a 2013 study, 80% of CFOs acknowledged that they would decrease spending on R&D, advertising and maintenance to meet an earnings target. (Study by Duke, NBER, and Univ of Washington)
    • One study showed that, based on their particular experiment, going public was accompanied by a 40% decline in quality innovations (defined as patents heavily cited by future patents) for those firms in the five years immediately following listing. Meanwhile, the firms that considered an IPO but stayed private innovated at an accelerated rate. (Third Way)

    We believe that it's a detriment to our economy when companies can't focus on the long-term. The McKinsey Global Institute found that companies that operate with a long-term mindset have in the aggregate outperformed their industry peers across almost every financial measure that matters since 2001. Additionally, companies that managed for the long term added nearly 12,000 more jobs on average than their peers from 2001 to 2015.

    We are aiming to create a public company experience that makes it easier for companies to focus on their long-term vision.
  • How does LTSE seek to accomplish its goals?
  • LTSE aims to reinvent the public company experience through innovative listing standards that are focused on novel approaches to disclosure practices, shareholder voting, executive compensation, and board and stakeholder policies.

    How are LTSE listing standards different than those on the existing exchanges?

    LTSE's baseline listing are similar to those of IEX, NYSE and Nasdaq. We built in a set of innovative additions to those standards designed to empower and reward long-term focused companies and the investors who support them.

    LTSE listing standards are designed to promote the following goals:

    • Long-term voting — Give true long-term holders a greater say in corporate governance
    • Executive compensation — Reduce misaligned incentives around short-term goals
    • Long-term disclosure — Focus the narrative on the long-term potential of the business
    • Long-term focused board — Help prioritize long-term focused product and strategy discussions in the boardroom
    • Long-term stakeholder policies — Make it easier for investors to recognize companies for addressing environment, community and diversity
  • More information about LTSE listing standards
  • Which types of companies do you expect to list on LTSE?

    LTSE provides a new, innovative listings option for companies across industries and geographies and is designed for companies concerned with short-termism in the public markets. Any company that complies with the LTSE listing standards is eligible to list. The LTSE standards are designed to attract successful, visionary enterprises with strong values and a commitment to long-term success.

    What is the LTSE Long-Term Voting system?

    LTSE believes that long-term shareholders should have a greater role in a company's corporate governance than short-term shareholders. Companies listed on LTSE will provide all shareholders with the ability, at the shareholders' option, to accrue additional voting power over time up to 10x over 10 years, accruing on a monthly basis.

    What will LTSE-listed companies be required to disclose?

    LTSE strives to shift investors' focus from evaluating companies' progress from quarterly results to long-term growth strategy and progress, and to give investors additional relevant information for evaluating long-term success. In addition to standard disclosures already required by the SEC and other exchanges, new company disclosures will include:

    • Information about the company's annual Long-Term Growth Strategy and leading indicators of future growth, as well as progress in meeting key milestones (with certain competitive exceptions) designed to provide long-term focused metrics for evaluating success.
    • New disclosures about buybacks, investments in human capital, and R&D, designed to provide focused transparency for investors and enable them to better identify companies that are making long-term choices.
      Policies on the company's impact on the environment and community, and the company's approach to diversity, designed to give investors' insight into a company's approach to these critical long-term issues
    Will LTSE-listed companies operate under GAAP accounting?

    Yes, companies listed on LTSE are still required to comply with all GAAP requirements.

    Can companies dual list on another exchange along with listing on LTSE?

    Yes, companies have the option to list only on LTSE, or to dual list on LTSE and another U.S. exchange.

    Will LTSE-listed companies be allowed to make share repurchases - aka "buybacks"?

    Yes. LTSE-listed companies will be subject to enhanced disclosures regarding buybacks. We want to enable investors to have greater transparency around a company's buyback initiatives and earnings per share (EPS) net of buybacks.