It's OK to Give Shareholders Access to Outside Directors

Abstract:     

In recent years, institutional shareholders in US companies have started demanding direct access to non-management board members in order to assess the quality of board stewardship. Although some firms have relented, many continue to resist.

This commentary explains why it is important for shareholders to engage with a broad cross-section of non-executive directors, and seeks to allay concerns that outside directors may inadvertently divulge inside information and a diversity of opinions expressed would suggest a dysfunctional board.

Number of Pages in PDF File: 2

Keywords: corporate governance, company-shareholder engagement, board of directors

JEL Classification: G34