Listing standards

Long-term principles and policy requirements

The five policy requirements are interdependent and each must be consistent with its underlying principle.

Principle 1: Stakeholders

Long-term focused companies should consider a broader group of stakeholders and the critical role they play in one another’s success.
Long-Term Stakeholder Policy Requirements
A policy explaining how the company operates its business to consider all of the stakeholders critical to its long-term success, including:
Which stakeholder groups the company considers critical to 
long-term success
The company’s impact on the environment and its community
The company’s approach to diversity and inclusion
The company’s approach to investing in its employees
The company’s approach to rewarding its employees and other stakeholders for contributing to the company’s long-term success

Principle 2: Strategy

Long-term focused companies should measure success in years and decades and prioritize long-term decision making.
Long-Term StRATEGY Policy Requirements
A policy explaining how the company prioritizes long-term strategic decision-making and long-term success, including discussion of:
What time horizon the company considers long-term
How the company aligns success metrics with its long-term time horizon
How this time horizon relates to the company’s strategic plans
How the company implements long-term prioritization throughout the organization

Principle 3: Compensation

Long-term focused companies should align executive compensation and board compensation with long-term performance.
Long-Term Compensation Policy Requirements
A policy explaining the company’s alignment of executive compensation and board compensation with the company’s long-term success and long-term success metrics.

Principle 4: Governance

Boards of directors of long-term focused companies should be engaged in and have explicit oversight of long-term strategy.
Long-Term Board Policy Requirements
A policy explaining the engagement of the company’s board of directors in the company'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.

Principle 5: Investors

Long-term focused companies should engage with their long-term shareholders.
Long-Term Investors Policy Requirement
A policy explaining how the company engages with long-term investors.