The Institute of Chartered Secretaries and Administrators (ICSA) has published some new guidance, 'Enhancing stewardship dialogue', designed to encourage good engagement practices between companies and their investors. The idea behind this is that good engagement is important in supporting long–term investment in companies because there will be increased levels of trust between a company and its owners.
The guidance has four key messages for how to improve engagement practices. These are:
the need to develop an engagement strategy
the importance of getting housekeeping issues right
strengthening the conversation on strategy and long-term performance
providing feedback in a way that adds value for all participants.
The guidance is intended to be practical and includes an example of a possible engagement strategy, a checklist to help set up and structure meetings and a possible framework for discussion on long-term strategy and performance. The full guidance can be found here.