Gilbert: political consensus needed to support long-termism

Aberdeen Asset Management chief Martin Gilbert says the strategy for supporting long termism must be better thought through, with politicians striking a consensus on the best way to make improvements.

Gilbert (pictured) made the comments in reaction to the independent review carried out by Sir George Cox, who looked at the benefits of long termism in business and how this could be encouraged.

But while Gilbert said he was 'pleased' with the findings, he stressed political consensus was needed to secure further improvements.

He said: 'As a buy and hold investment house, we’re obviously pleased with Sir George’s conclusion on the benefits of long termism. Business expansion, for example the building of a new factory, cannot be achieved over a couple of quarters. The returns generated from that investment flow through over years, not months.

'That's why we’re keen to see stronger incentives to encourage both investors and management to take a longer term view.  Changes to corporate governance, the tax system and infrastructure spending may all help to achieve this but they need to be carefully thought through.

'Arguably the problem has been made worse by policy tinkering from successive governments, which has done little to promote a long term approach.'