It's OK to Give Shareholders Access to Outside Directors
Harvard Business Review Online, July 2013
2 Pages Posted: 6 Jul 2013
Date Written: 2013
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.
Keywords: corporate governance, company-shareholder engagement, board of directors
JEL Classification: G34
Suggested Citation: Suggested Citation