Our Secretary General, Béatrice Richez-Baum, speaking at IFA in Paris on the relationship between boards and investors


On 23 September 2016, our Secretary General, Béatrice Richez-Baum sopke at IFA in Paris on the relationship between boards and investors. 

The discussion can be summarized as follows :


  • Investors should not blindly follow the advises of the proxy advisors,
  • Issuers should request more access to the reports of the proxy advisors. Proxy advisors should let issuers more than 24 hours to react.
  • Proxy advisors play an increasing part in the voting (40%)
  • If investors have to trust boards, the opposite is true,
  • Mutual trust between boards and investors is key if companies want to avoid more regulations.
  • Dialogue with boards helps investors to have a qualitative approach of their work. This is a way to avoid box-sticking exercise when assessing their performance
  • Investors would like to know how much time boards dedicate to strategy in comparison to compliance
  • Public documents on remuneration are not always clear.
  • The comply or explain principle should enhance dialogue between boards and investors
  • Boards often let lawyers drafting the explanations when the company deviates from the code recommendations.
  • Dialogue between boards and investors focuses more and more on remuneration questions. There is a risk to disclose more information to certain shareholders and to neglect the equality of treatment among shareholders.
  • Boards should disclose more information on their evaluation. They should explain not only the process and the outcome but also the consequences.

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