NETHERLANDS - Roderick Munsters, chief investment officer at Stichting Pensioenfonds ABP, has urged companies to pay higher dividends to stable investors.
Such a financial incentive would entice investors to become more directly involved with the company and make better use of their rights as shareholders.
Munsters made the comments in a Dutch newspaper article, alongside some of the fund’s lawyers.
According to Munsters, paying higher dividends to investors who are willing to retain their shares for a longer period, would restore the balance between short- and long-term interests on the financial markets.
ABP added it could prove positive for the companies themselves.
The comments, in Het Financieele Dagblad, follows similar ideas last week from the Foundation of Share Issuing Corporations, which urged shareholders to commit to listed firms for longer.
Last month the civil service fund named Edwina Neal as chief investment officer of equities and board member – she took up her position today.