In recent times it has been becoming increasingly clear that bank stakeholders with shareholders in particular becoming more active then they have been in the past. The recent case of Barclays Bank shareholders standing against what many of the viewed as unjustifiably excessive executive pay is a case in point (Guardian article). This is an issue that is no longer just constrained to banking with recent developments (Daily Mail article) indicating that shareholders will take a stand if they feel they need to in other sectors.
A renewed effort in investor relations and issues management is required. It is in the interest of these businesses to protect their reputations and the best way to do this is do what is required to satisfy shareholders, after all once a business becomes a public limited company (PLC) they have a duty to their shareholders.
Shareholders invested their money within that particular business for a reason, they wish to make a gain and therefore care about what happens to the business. These businesses must work together with shareholders and their business communities by listening to their shareholders and stakeholders. Appropriate action may then be taken, which should have mutual benefit as a core guiding principle.
- DS -