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Morgan Stanley Sheds Light on Engagement Approach & Priorities

By Randi Morrison posted 06-20-2018 09:26 AM

  

If Morgan Stanley is in your stock, you'll want to read CamberView's latest Insights: "Engaging with Drew Hambly of Morgan Stanley Investment Management." The informative Q&A with Corporate Governance Executive Director Drew Hambly offers insights into the investor's perspective on a range of relevant topics including the do's and don'ts of engagement, its governance hot topics, board-related expectations, and executive compensation "red flags." Notably, the investor prioritizes executive compensation and board & management succession in lieu of particular E&S topics, which it views as more company-specific.

 

In terms of the do's and don'ts, this exchange is share-worthy: 

Q: What is one thing you never want to hear in engagement and one thing you always want to hear about?



A:
My big no-no is don’t ask if I’m familiar with what ISS or Glass Lewis has done. As we’ve said time and time again, we have our own policies and procedures. While we are, of course, aware of their research, we want to spend as little time as possible on the proxy advisors and as much time as possible on what the board and company are doing and what we believe they are doing well or not well.



We like to hear from companies how the board is getting information and is being active in that process. It’s a simple premise – board directors are our representatives as shareholders. Whether it’s directly from them or from management, we want to hear and understand how they’re involved in decision-making, how they ask for new information and what the key topics on their agendas are.

Access numerous additional resources on our Institutional Investors page.

 

 

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