Note: This article first appeared in The Corporate Board in July/Aug 2016 – Corporate Board Magazine Article 2016
Engagement with shareholders has quickly become a vital part of corporate life, but how to handle this relationship within the company is still unsettled. The investor relations officer is a crucial liaison, and the board of directors plays an important role. However, more corporations find the corporate secretary brings both the skills and credibility needed to tell your company’s story.
Effective shareholder engagement has become one of the most important, and oft heard, mantras among corporate management and investors. Institutional investors are demanding (and expecting) regular, proactive communication with company management, and in many cases, the board of directors. Ongoing communication is now one of the fundamental hallmarks of good corporate governance. We have seen several examples of how high-quality engagement can circumvent shareholder activism, defeat shareholder proposals and, perhaps most importantly, create long-term shareholder value.
The past several years have seen a shift in the tone of conversation regarding governance. Many investors, particularly those with an active investment style, are looking at governance as an investment differentiator. Investors are looking at governance, and the way the board operates, as a measure of long-term stability and value…
To continue reading please click here – Corporate Board Magazine Article 2016