This memo from PwC’s Matt DiGuiseppe, Gregory Johnson and Ariel Smilowitz argues that the new shareholder engagement paradigm is more complex than before – and that directors and shareholders will be engaging more directly going forward. Here’s the related set of principles that they espouse:
1. Reframe shareholder engagement as a core board responsibility
2. Shift the objective from ‘managing the vote’ to ‘sensing risk and conviction’
3. Engage with the real decision-makers
4. Redesign engagement for a polarized environment
5. Institutionalize what the board learns
