Shareholder engagement - stewardship consultation launched

Shareholder engagement - stewardship consultation launched

A Steering Group of industry experts (comprising companies, investors and other key stakeholders) has launched a consultation on improving engagement practices between companies and institutional investors.  This consultation follows a report published in March by the Investor Stewardship Working Party which contained recommendations for improving engagement practices.  The Working Party asked the Institute of Chartered Secretaries and Administrators (ICSA) to take forward two of the report’s recommendations, by developing a good practice guide to improve the quality of engagement activity, and identifying more ways for companies and institutional investors to seek and provide feedback on the quality of meetings.  The Steering Group, chaired by Sir John Egan, has been established by ICSA to help carry out this work.

Areas covered by the consultation include:

  •     whether the nature of the discussion between a company and its investors needs to change, with more emphasis on a dialogue which builds and encourages a long term relationship with, and commitment to, the company;
  •     what improvements can be made to the process of holding engagement meetings;
  •     whether companies and institutional investors should seek feedback on the quality of meetings, and how that might be most effectively done.

The consultation closes on 30 November 2012.  Subject to feedback received, the Steering Group intends to issue guidance in March 2013.

A copy of the consultation can be found here.

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