New Imperatives – Board engagement with Investors

By Sheila Ennis

More and more investors are seeking access to Board members to gain an information advantage and assess whether there is any daylight between management and the board regarding potential shifts in strategy, capital allocation or execution. There need not be a catalyst for doing so.

While this type of information is always in high demand, we have tracked rising demand for 1:1 investor:director meetings – especially from larger institutions. Some investors are looking to spur change while others seek access to gain confidence that company leaders are capitalizing on every possible opportunity for growth and value creation.

As the traditional proxy season wraps up, it is paramount for companies to assess whether it makes sense for them to provide access to their directors and enable that conversation and, if yes, to determine which directors make sense and then ensure rigorous prep and alignment among Board members and management.

It was precisely this topic that anchored a recent conversation I joined alongside Cooley’s corporate governance and securities regulation practice lead, Beth Sasfai, and Financial Times’s Agenda reporter Emma Sandler. This hourlong conversation focused on strategies to use post proxy season including:

  1. Assessing whether providing access to the Board solves a business problem. For instance, is a board member in a position to correct a misperception about market dynamics?
  2. Considering alternatives to 1:1 engagement – like posting a recording of one or two board members discussing key strategic initiatives and rationale
  3. Using the off-season to deepen or refresh investor understanding of your governance and growth strategies – with or without Board member involvement
  4. Briefing Board members on the point of view of vocal or influential investors and the company’s rationale for any discrepancies regarding the company governance or growth strategies against those views
  5. Presentation training Board members to ensure year-round readiness to engage publicly with investors

 

You can watch the on-demand webcast in full using this link:  https://bit.ly/Prxy2025_HAA-AgendaFT