Aligning Corporate Culture with Long-Term Strategy

  • Before the 2019 proxy season, Cyrus Taraporevala urged board chairs and lead directors at publicly traded companies to help investors better understand how their company culture aligns with their long-term strategy
  • Cyrus examined the impact of “intangible assets,” such as corporate culture, on company performance

Cyrus Taraporevala
President & CEO

On the eve of the 2019 proxy season, State Street Global Advisors President & CEO Cyrus Taraporevala is calling on board chairs and lead directors at companies around the globe to help investors better understand how their company culture aligns with their long-term strategy.

As part of our continued focus on good governance and other practices that affect long-term investor returns — from gender diversity to environmental sustainability — Cyrus examines the impact of “intangible assets” such as corporate culture on company performance. On average, such assets account for 52% of an organization’s market value (and in some sectors as much as 90%)1.

However, State Street’s past engagements with companies have revealed that few directors can adequately articulate their company culture or demonstrate how they assess, monitor and influence change.

Cyrus therefore sets out a framework designed to help companies better align their corporate culture with their strategic direction, through conducting analysis, monitoring progress and improving reporting of this material issue over time.

Read the letter Cyrus sent to board directors here, along with our stewardship guidance.


1Jonathan Haskel and Stian Westlake, Capitalism Without Capital : The Risk of the Intangible Economy, (Princeton University Press, 2017).


The views expressed in this material are the views of Cyrus Taraporevala through the period ended 01/28/2019 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

Investing involves risk including the risk of loss of principal.

All information has been obtained from sources believed to be reliable, but its
accuracy is not guaranteed.

There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

The information provided does not constitute investment advice and it should not be relied on as such. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.  You should consult your tax and financial advisor.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

United States: State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641


State Street Global Advisors Global Entities

© 2019 State Street Corporation - All Rights Reserved

Tracking #: 2398474.2.1.GBL.RTL

Expiration Date: 08/31/2020