Everyone these days is expounding on the benefits that flow from investor-corporate dialogue, including us. Even law firm Wachtell Lipton, famous for its opposition to shareowner intrusion in board affairs, recently urged directors to speak to investors as a tactic to prevent defeat during “say-on-pay” votes.
Dialogue has certainly proven a cure in that area; nearly all companies that saw say-on-pay votes fail in 2011 talked with investors, took their concerns into account, amended their compensation plans, and earned overwhelming support in 2012. So opening channels for communication is not just the flavor of the month, but it’s been touted as something of an elixir for governance ills.
