Different approaches; positive results
Governance and IR professionals report finding many benefits from working together on the proxy statement, engagement and ESG reporting. These can include a more collegiate environment and new insights into how to communicate and engage with investors. ‘We each bring a different lens’ that helps the company develop a more comprehensive response to shareholder feedback, Simanek says. He notes that each team has areas where it is stronger than other teams, adding: ‘We couldn’t do this without them, and vice versa.’
A key theme, however, is the value of collaboration in improving the company’s relationship with investors by telling its story effectively. ‘Companies today face varied, complex issues that require diverse subject matter expertise and insights to effectively communicate to shareholders and other stakeholders on these topics. The bottom line is working to have coherent communications and a consistent narrative,’ Orowitz says.
She welcomes the use of shared editing tools for preparing the proxy statement, noting that different people can be given different levels of access and editing authority for different parts of the document. In terms of co-operation between IR and governance teams overall, Orowitz notes that some companies take an ad hoc approach while others adopt a more structured plan with assigned roles.
Ultimately, it is important for IR and governance teams to keep an open mind, she advises: ‘Don’t feel limited in how you approach these tasks. It’s a fast-evolving area and companies have different levels of resources. Companies should do what works for them and not necessarily be confined by traditional roles.’