From: Pension and state funds dominating biomedical R&D investment: fiduciary duty and public health
Distance from principals | Agents | Financial flows order of magnitudea | Authority by | Incentive | Compensation | Geography |
---|---|---|---|---|---|---|
Principals | Savers | Thousands | Asset ownership | Welfare | May be based on financial performanceb. Linear scaling | Dispersed |
1 | Pension fund board | Billions | Election or political appointment | Political | Fixed retainer fee | Concentrated: regional or national |
2 | Pension fund executives | Appointment by pension fund board | Financial return | Based on financial performance. Superlinear scaling | ||
3 | Investment managers | Trillions | Appointment by pension fund executives | Financial return | Based on financial performance. Superlinear scaling | Concentrated: global financial centres |
4 | Corporate directors | Millions | Appointment by investment managers’ vote on shares | Financial return | Based on financial performance. Superlinear scaling | Concentrated: global economic hubs |