The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2020”.
Shareholder engagement continues to be an important consideration for companies in communicating their long-term strategy and deepening relationships with their investors, and boards are becoming ever more involved in the process.
In PwC’s 2019 “Annual Corporate Directors Survey,” 51% of the directors reported that a member of their board, apart from the CEO, engaged directly with a shareholder in the past year. One third of more than 300 directors, senior executives and legal advisors surveyed by KPMG in June 2019 reported more significant board engagement with shareholders over the last two to three years than in the past. Not only has director engagement increased, but directors have also reported “a positive impact on shareholders’ voting and investing decisions” as a result.
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For a PDF of the full memorandum, please click here.