The Stewardship Working Party has asked the Institute of Chartered Secretaries and Administrators (ICSA) to take forward two of the recommendations in its report:
The Institute has established a Steering Group to help carry out this work, chaired by Sir John Egan, former chair of Severn Trent plc and has issued a consultation document Improving Engagement Practices by Companies and Institutional Investors to which it is seeking responses by 30 November 2012.
We know from evidence that the engagement relationship between institutional investors and companies is not working at its best.
The consultation document has been prepared by both sides for their mutual benefit. Both stand to gain from the potential increase in long term value from successful engagement.
The objective of the consultation process is to facilitate an environment where companies and their investors can work together to achieve common aims over a longer time frame so companies are relieved of pressure to take short term measures at the expense of longer term benefits for the business.
Respondents are asked for their views on whether guidance will help improve engagement practices and to comment on a list of practical measures and ideas designed to make meetings more productive.
You can either attend a consultation meeting or send your response to ICSA. The consultation closes on the 30th November 2012.
Subject to the outcome of the consultation, the Steering Group intends to issue guidance in March 2013.
Read the full consultation