On the heels of BlackRock Chair & CEO Larry Fink's widely-publicized (and debated) 2018 annual letter to CEOs (reported on here), as well as a number of other noteworthy institutional developments over the past year, Wachtell Lipton's "Engagement - Succeeding in the New Paradigm for Corporate Governance" suggests what and how companies can communicate to investors so as to illustrate their focus on long-term growth and value creation in a manner responsive to and consistent with these influential investors' expectations.
The memo identifies practical steps companies can take to effectively communicate how their governance, strategic, capital allocation, sustainability, corporate culture, compensation, and other relevant practices are aligned with a long-term approach in a way that is actionable, yet sufficiently principles-based so as to be adaptable to any company-specific facts and circumstances.