Responding to Shareholder Dissent: Tales from the Trenches

In this article from Agenda, a Financial Times publication for U.S. corporate boardrooms, representatives, governance experts and investors detailed best practices in responding to a display of shareholder dissent ahead of this year’s proxy season. Kirkland partner Bob Hayward described a consistent, year-round and meaningful stockholder engagement plan as the best way to overcome negative votes. 

"... By planning ahead and tailoring the response to the particular facts and circumstances of each situation, companies can overcome negative votes and earn the support of stockholders going forward. Indeed, whether the company implements changes to address any underlying concerns or simply improves upon its communications strategy (sometimes additional disclosure and clarification is enough), most companies do want to overcome a negative vote the following year. Whatever the company decides to do, a consistent, year-round and meaningful stockholder engagement plan is the best way to overcome another negative vote,' Hayward said.