March 26, 2015

Companies fail to explain board picks to investors

EY study calls on companies to better explain board composition and improve investor communications
By Adam Brown, IR Magazine

More than 75 percent of institutional investors say companies are not doing a good job of explaining why their directors are the right people for the job, according to a survey by the EY Center for Board Matters.

The lack of explanation comes at a time when investors are increasingly looking for confirmation that boards of directors have the skills and expertise needed to monitor key risks and provide strategic counsel to the company, the survey says. It also comes amid increasing pressure for proxy access by investors.