With the recent increase in shareholder activism, companies are increasingly considering roles for lead directors in communicating with shareholders. Although management remains principally responsible for investor relations, having a lead director who can assist in certain types of commu- nications may add a useful voice. Since independent directors often are viewed as carrying the flag for shareholders, in some instances it may be natural for lead directors to communicate directly with shareholders, particularly activist hedge fund or institutional shareholders who are voicing concern about company strategy or management perfor- mance. Lead directors can also play a key role in communicating with shareholders.
