With respect to shareholder engagement programs, beyond the traditional engagement with portfolio managers and buy-side analysts, it is critical to understand an institution’s corporate governance policies and to recognize the existence of internal corporate governance / proxy voting teams that historically choose not meet with Issuers. We assist clients in understanding how voting decisions are made at each of their large institutional investors as we possess in-depth knowledge of the institutions governance guidelines or polices. While you may not be able to engage with the institution’s voting team, it is nevertheless important to understand how they will review your governance and compensation models. Furthermore, we also track which institutions subscribe to ISS and Glass Lewis and thus we can assess with a high probability of success how any particular shareholder vote will go. While company performance will always be a driver on investment decisions, increasingly governance matters are playing a key role on the Issuer/shareholder relationship. Issuers should not be satisfied with just having a good relationship with their portfolio manager. To do so is to run the risk of a very public failure on a vote at your AGM.
We work closely with our clients in building out the right engagement program for their situation. Whether a solicitation for a shareholder meeting or a broader-focused shareholder engagement effort. Gryphon and Frontline Advisors Inc. are ideally positioned to prepare clients through our knowledge of the key issues that particular institutions and hedge funds focus on, as well as their voting practices and actions in other situations.
For further details, please contact us with any questions.