Activism

The Corporate Secretary’s Role in Telling Your Company Story?

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

Buy-Side Receptivity to Activism

In a recent Rivel Intelligence Council Quarterly Perception Study we asked 353 global investment professionals their updated views on shareholder activism.

The global buy-side remains highly amenable to shareholder activism. The large majority believes this is a positive development for the equity markets.  The investment community believes that activism (or the threat of it) is credited with keeping management focused, accountable and committed to making sound capital deployment decisions.

IC29 CGIC Graphic 1
Receptivity is somewhat lower but still widespread (61%) when it comes to stocks investors already hold – especially when they think a company they own has too much cash on its balance sheet.

IC29 CGIC Graphic 2

This kind of receptiveness extends from a high of 71% in the US to a low of 40% in the Asia-Pacific region.

IC29 CGIC Graphic 3

Big Legal Minds

Thrilled to be included in this original series from our good friend, Broc.

“Big Legal Minds” is a podcast series about the most interesting issues and people in the corporate & securities law – and corporate governance – community. Broc Romanek of TheCorporateCounsel.net serves as host.

Check it out at http://www.biglegalminds.com/

Most Important Engagement Role of the Corporate Secretary?

In your experience, what is the most important role/responsibility of the corporate secretary in investor engagement?

In our recent survey, conducted with 278 corporate secretaries in collaboration with The Society of Corporate Secretaries & Governance Professionals, there was a significantly higher premium placed on engaging directly with investors at large-cap than with mid- or small-cap companies. The importance of dialogue with board members was high across the spectrum.
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