Activist stampede pushes board directors into shareholders’ arms | Reuters

The rising power of activist shareholders has added a new responsibility to the role of board director at a publicly traded company: investor relations.

From JPMorgan Chase & Co to Microsoft, and Johnson & Johnson to Apache Corp., board directors across North America have increasingly begun serving as a bridge between institutional investors and corporate management teams.

In the role, which barely existed at most companies five years ago, board members must be careful to avoid sharing inside information or to interfere with a CEO’s own communication with investors.

Director engagement with investors is an evolving trend, though it’s developed to the point where board members are now embarking on “corporate governance road shows” in the autumn, to gauge investors’ views and to ensure their support at the annual meeting in the spring.

via Activist stampede pushes board directors into shareholders' arms | Reuters.

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