It’s great to have a long-term story. It’s even better if your owners know about it, says Glenn Booraem, the head of investment stewardship and a principal at Vanguard.
He believes it’s crucial for listed companies to, firstly, understand who their significant owners are and where those owners stand on a range of issues, and then for them to communicate with these owners in a way that’s responsive to their views.
‘We believe that articulating our beliefs on governance to our investors and investee companies helps build the foundations for our ongoing engagement,’ he says.
‘In the same way, having companies tell their value story to us has tremendous value and ensures that when we do engage on an issue neither of us are starting from scratch.