October 01, 2014

Investor perspectives: How investors are shaping boards today… and into the future

Successful investors continually look around the corner to anticipate the next challenge and the next opportunity. Standing still can result in loss of competitive edge, alpha, and ultimately investment returns. And investors expect the companies in which they invest to be similarly forward thinking.
By Kayla J. Gillan and Joanne O’Rourke

Excerpt from survey:

How are boards doing?

Investors are generally satisfied with how boards are doing their jobs, particularly with respect to overseeing regulatory compliance and assessing the company’s strategy. More than 80% of investors say they’re satisfied with how boards are overseeing risk and maintaining their own expertise. And about two-thirds of investors are satisfied with boards’ assessment of management performance. But investors also think there is room for improvement. For example, more than 60% of investors are dissatisfied with how boards assess director performance, and nearly half want to see improvement in how boards engage with shareholders. Over 40% of investors want boards to improve how they incentivize management through performance metrics.