In 2012, James D.C. Barrall, of counsel and retired partner at Latham & Watkins LLP, wrote a commentary on corporate governance entitled “Building Relationships with Your Shareholders Through Effective Communication.” In it, he discussed the paradigm shift of shareholders demanding engagement with management.
This trend continues today as do the benefits of communicating effectively to shareholders — an important part of a sound corporate governance policy.
What follows are two recommended tools for communicating effectively to shareholders.
A thing of the past? On the contrary. When executed and distributed correctly, press releases remain a highly effective form of communication. The most effective press releases not only tell a great story to prospective shareholders, but also keep current shareholders informed and engaged. Of course, they must be professionally done (to the point, well written, no typos) and can include photos and multimedia. Then there’s distribution and promotion. If a company works with a press release provider, an SEO-friendly URL, social media promotion and an interactive distribution report are recommended features that a company should consider.
A thing of the present and future? Without a doubt. Consider how much time you spend on social media and all the chatter that takes place on the many platforms. Chances are, your shareholders are talking or at least listening. A company can create dialogue with shareholders through social media, whether it’s through posting, responding to questions or a marketing campaign — they all keep shareholders engaged. Plus, a company’s accounts add to its online presence established with its website. But like with press releases, social media messaging must be professionally and thoughtfully executed.
These complementary tools can effectively keep the conversation between company and shareholders going.
If you have questions, and many IR professionals do, Issuer Direct can help.