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Main » 2018 » February » 4 » Institutional Investors Want More Information about Companies’ Board Composition, Business Strategy and ESG Practices, According to a New Mo
11:19 AM Institutional Investors Want More Information about Companies’ Board Composition, Business Strategy and ESG Practices, According to a New Mo |
LONDON-Saturday, February 3rd 2018 [ AETOS Wire ]
(BUSINESS WIRE) -- Institutional Investors with assets under management of USD 31 trillion want more detailed disclosure from portfolio companies about their boards of directors, business strategy and ESG, according to Morrow Sodali’s annual Institutional Investor Survey, released today. The survey highlights three areas of concern for investors looking ahead to the 2018 annual meeting season:
Clear articulation of a company’s business strategy and goals;
Directors’ skills, qualifications, experience and individual contribution to the effectiveness of the board;
Detailed business rationale for board decisions and their alignment with strategy and financial performance.
The Morrow Sodali survey, the third of its kind, was conducted between November and December 2017. Forty-nine global Institutional Investors, with USD 31 trillion of assets under management, responded to the survey.
Survey respondents also indicated that:
Investors will prioritize directors’ skills ahead of gender or ethnic diversity.
Unjustified pay will come under intense scrutiny.
Investor collaboration around broader Annual Shareholder Meeting topics will increase exponentially.
Institutional Investors will be increasingly likely to support a credible activist story.
ESG issues are either fully integrated or progressing towards full integration with investment decision-making.
Investors will seek enhanced disclosure around materiality and sustainable metrics linked to long-term business strategy.
Kiran Vasantham, Director of Investor Engagement, said, “Now in its third year, this survey provides issuers with valuable insights on investor expectations. It is a bellwether for all companies as we enter the 2018 Annual Shareholder Meeting season. I am delighted so many investors took part in the survey, as it provides an important overview of asset managers’ priorities on a broad spectrum of ESG issues.”
To access the full report of Morrow Sodali’s Institutional Investor Survey 2018, click here. To access our previous surveys (2016 and 2017), click here.
About Morrow Sodali
Morrow Sodali is the leading global consultancy providing comprehensive governance and shareholder services to corporate clients around the world. We provide companies and their board of directors with strategic advice and services in corporate governance, capital markets intelligence, shareholder communication and engagement, proxy solicitation, activism and related ownership issues.
With headquarters in New York and London and local offices and partners in ten countries, Morrow Sodali serves more than 700 corporate clients in 40 countries, including many of the world’s largest multinational corporations. In addition to listed and private companies, its clients include mutual funds, stock exchanges, membership associations and activist investors.
For further information about Morrow Sodali, please visit www.morrowsodali.com.
Contacts
Morrow Sodali
Velia Senatore
E‐mail: v.senatore@morrowsodali.com
Phone: +39 344 3464 051
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