The Narrowing Channels of Shareholder Communication

Corporate partner Doug Raymond authored an article for Directors & Boards titled “The Narrowing Channels of Shareholder Communication.”

In the article, Raymond explained how directors – who owe a fiduciary duty to stockholders – are increasingly confronted with narrowing ways to communicate to shareholders, resulting in a corporate governance system increasingly divorced from shareholder input.”

“As directors consult mostly with each other, management and their own advisors, they may find themselves increasingly in an echo chamber where their biases and decisions are applauded rather than challenged,” Raymond concluded. “If this begins to happen, the board should consider whether receiving this more limited feedback really benefits their ability to act in the best interest of their shareholders.”

The full article is available to Directors & Boards subscribers.