Oct 31, 2016
Board-shareholder communication has been gaining momentum over the past few years, yet many directors continue to be averse to shareholder engagement due to concerns about Regulation FD or inadvertently saying something out of step with management. Many institutional investors increasingly view the willingness of boards to communicate with investors as a gauge of board effectiveness and culture.
A group of best practice boards is now publicly praising the benefits of engaging with shareholders and is announcing plans to do more. Some company boards are also showcasing governance changes they are implementing as a result of feedback they received from the engagement process. This article reviews current
