BOARDS – NO MORE HIDING FROM INVESTORS
American investors, analysts, and the general public have little trust for corporations and their boards of directors at the moment. Boards, in turn tend to avoid dialogue with shareholders, and don’t handle it well when they do. But that is suddenly changing, writes Ralph Ward, publisher of the online newsletter Boardroom INSIDER.
In the new April BI, Ward notes the recent debut of two major initiatives to boost dialogue between boards and investors. Just since the start of 2014, The U.S. Conference Board has published a report from its Task Force on Investor Engagement, while the PwC Center for Board Governance and heavyweight law firm Weil Gotshall offered an in-depth study on “Director Dialogue With Shareholders.”
Such a sudden burst of interest suggests that “boards can no longer ignore the stickier aspects of how they talk with shareholders,” writes Ward, who also speaks and consults on boardroom issues. He offers a few thought starters for directors on the topic, including – how should you target specific investors for dialogue? – who on your board should take the lead? – are you schooled on the legal disclosure snares that may be waiting?
Also in the April Boardroom INSIDER:
How boards can aid a “lame duck” CEO’s transition.
“Scripting” as a board chair’s meeting tool.
Q&A: What you should you seek in your first outside board member?