Director-shareholder engagement may not advisable for every board for a number of legitimate reasons. But there is no question it is an emerging practice. Those who have engaged say it is worthwhile and can be a powerful strategy to strengthen shareholder relationships in an age of increasing investor activism.
The annual report is a once-a-year opportunity for public companies to engage, educate and attract investors, prospective employees, and potential partners. Today's annual report should be an eagerly clicked-upon link that provides a personal (yes, personal!) experience to the person looking to know what a public company has been up to over its past fiscal year, and what its people have to say about it.