The Challenge:
Alpha was engaged beyond an existing investor relations partnership to improve the board of directors’ visibility and credibility with institutional investors during a period of strategic transformation and shareholder scrutiny. Investor confidence had been shaken by a series of leadership changes, questionable M&A and inconsistent earnings results, leading to concerns of shareholder activism as well. The board of directors elected to lean into its corporate governance and stewardship practices to justify strategic decisions and demonstrate long-term leadership. Specifically, Alpha was engaged to help reposition the board as a strategic, accessible, and accountable body aligned with shareholder interests and corporate stewardship best practices.
Alpha’s Solution:
- Our approach focused on investor communications strategy, board messaging development, proxy season support, director training, and ESG positioning.
- The team also used its stakeholder Mapping and Perception Audit to conduct confidential interviews with top institutional shareholders, analysts, and proxy advisors to identify perception gaps regarding board oversight, strategy alignment, and ESG responsiveness.
- Collaborating with the investor relations team and corporate secretary, Alpha crafted clear, consistent board-level messaging around strategic oversight, succession planning, risk management, skills, diversity, etc. We then trained and prepared select directors for targeted engagement with proxy-voting parties and conducted one-on-one engagements.
- In terms of proxy preparation, we supported the board’s engagement with proxy advisors and investors by drafting compelling messaging around board refreshment, executive compensation, and shareholder value creation. Alpha also developed a new section on director-shareholder engagement for the proxy.
- Lastly, we aligned board communications with evolving ESG disclosure standards, showcasing board involvement in sustainability strategy and human capital oversight.
Results:
- Engaged with 50% of the shareholder base between the formal perception study and director-shareholder meetings.
- Enhanced director-shareholder reporting metrics and language in proxy.
- Created and posted a new presentation on corporate governance and stewardship on the investor website.
- Received very positive feedback from core investors (stewardship teams and portfolio managers) on the board’s willingness and proactivity in approach to engagement.
- Ultimately, completed a very successful proxy process with the company’s proposals receiving over 98% voter support.
