A Board Primer for Listed Companies

Boards of quoted companies are held to account by regulators and shareholders. As economic pressure intensifies, so does Board scrutiny.

Hence, at Fidelio’s recent “A Seat at the Table” Board development programme, we focused on:

  1. The statutory and regulatory framework for those sitting on the Boards of public companies, ensuring a firm grasp of regulations, governance codes and legal obligations
  2. What drives shareholders in their investment and stewardship decisions – including activism

To build an understanding of institutional investors and their expectations of the companies they invest in, Fidelio’s Steve Cheetham explored ‘Boards, Shareholders & Activism’. This included an activist case study and resulted in a critical check list for (i) responding to an activist investor and (ii) pre-empting activism through strong valuation and effective communication.

THE EQUITY MARKETS: A BACKDROP

Key themes included in the “A Seat at the Table” module included:

  • Long term trends in longevity and demographics
  • Major structural change in pension provision: in the UK and internationally
  • Investment management: an industry facing disruption
  • Board implications:
    • The rise of ESG
    • The sharp focus on pay
    • The need for effective engagement

AN ACTIVIST ON THE REGISTER

The activist case study provided:

  • Insight into the modus operandi of a leading international activist
  • Triggers for an activist investment and how to pre-empt
  • An appropriate Board response to an activist on the register and a Fidelio Board checklist
  • The importance of effective investor engagement and critically owning the narrative – a Board and company that loses the narrative dramatically increases vulnerability.

For the full module, please click here.

To learn more about how Fidelio can support with Board composition or Board effectiveness please contact Gillian at gkarrancumberlege@fideliopartners.com.

For further details regarding Board learning and development, please contact Amy at awright@fideliopartners.com. The next iteration of “A Seat at the Table” will take place on 16th – 17th March 2021 at Hever Castle, Kent, UK.

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