Risk
01/12/2023

When Directors Should Talk to Investors

Company boards have long spoken to investors in indirect ways, through their votes and organizational performance. But as powers shift to large investors and governance norms have changed, investor groups have demanded more one-on-one conversations with bank directors. Allowing directors to speak to investors comes with risk, and not just due to the potential for legal missteps. The director becomes a public representative of the bank and anything he or she says will be scrutinized, resulting in possible backfire. “You can’t really say you’re not speaking for the company,” says Peter Weinstock, a partner at the global law firm Hunton…

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WRITTEN BY

Ryan Derousseau