Effective shareholder engagement
An analysis of the factors that contribute to shareholder salience
Institutional investors are increasingly becoming active owners through voting their shares and engaging in dialogue with investee companies. This thesis applies a model of stakeholder salience – focusing on the attributes of power, legitimacy and urgency – to shareholder engagement with portfolio companies within a number of case studies of UK and US fund managers to determine which the factors that are likely to enhance shareholder salience. It is found that a strong business case and the values of the managers of investee companies are likely to be the most important contributors to shareholder salience.