Supervisory board chairs have a whole range of internal and external communication measures at their fingertips

Communication measures of supervisory board chairs

We identified a whole range of internal and external communication measures from supervisory board chairs.

Internal communication

The communication within a supervisory board body primarily takes place at meetings, but also in numerous personal discussions in preparation for these meetings.

When exchanging information with the executive board, the focus is on providing the supervisory board with information – as the foundation for its work. In addition, the two chairs discuss various topics, with the supervisory board chair acting as a sounding board for strategic considerations.

The conduct of communications by the supervisory board chair with internal stakeholders is based primarily on dialogic communication measures such as personal formal or informal discussions as well as telephone calls.

The manner, frequency, and intensity of internal communication are determined by the personal communication style of the supervisory board chair. However, the relationship with the executive board and its assessment of the relevance of communication also have an influence.

External communication with stakeholders

The supervisory board’s disclosure obligations are fully embedded in the company’s regular communications. These include primarily the Supervisory Board Report within the Annual Report, the explanation of the report at the Annual General Meeting, corporate governance information on the IR website, and press releases on topics relevant to the supervisory board.

Supervisory board chairs regard the dialogue with investors as legitimate but reserve the right to decide with whom and in what constellation these discussions are held. Investor dialogue is a personal or dialogue-based instrument of external communication. The investor relations department is an important personnel resource for the chairs concerning investor dialogue as well as discussions with proxy advisors.

The communication of supervisory board chairs with the media and other stakeholders is not defined by law and is therefore purely voluntary. While voluntary communication with journalists is based on background discussions as well as interviews, other dialogic communication measures, such as the use of social media channels or personal discussions with politicians and even customers, were identified – the latter, however, represent a special format.

Method

The study is based on expert interviews with supervisory board chairs and investor relations and public relations officers from 10 DAX and MDAX companies.

Communication with internal stakeholders

Supervisory Board

In addition to the regular meetings of the supervisory board and its committees, personal discussions take place to prepare for and follow up on meetings

Executives

There are numerous dialogue formats between supervisory board chairs and executives, e.g., during presentations at meetings, dinners, etc.

Executive Board

Supervisory board and executive board chairs exchange views in regular meetings, while discussions with other executive board members tend to take place less frequently

Employees

In special situations, supervisory board chairs may also act as internal spokespersons to explain the board’s view

Communication with external stakeholders

Investors

Investor dialogue is in a dynamic development process, but so far only affects some of the companies - although all the companies surveyed are considering a modus operandi. A few companies hold annual or regular corporate governance roadshows

Journalists

Voluntary communication with the media is dominated by background discussions, but on-the-record interviews are also becoming more frequent

Politicians

In special situations or as inaugural visits, there are personal non-public discussions between supervisory board chairs and politicians - whereby the CEO is always involved

Proxy advisors

There is an occasional dialogue in the run-up to the Annual General Meeting or at corporate governance roadshows

Public

Personal social media channels of supervisory board chairs will be a relevant challenge in the future

Customers

Personal discussions with customers in the event of complaints represent a special form of communication by supervisory board chairs

``For me, communicating internally, i.e., within the supervisory board as a body, and in the direction of the executive board, is particularly important. It is probably the most important task that a supervisory board chair has.``

(Supervisory Board Chair)

``The most important topics in investor meetings are two big blocks: Strategy and HR topics. Appointment, dismissal of board members or even changes in the supervisory board - I already see that as a core topic. And then there's the strategy, which is discussed and adopted at some point because this is often linked to subsequent investments. Why are we investing in this? Quite simply because the supervisory board has also adopted the strategy that implies this.``

(Supervisory Board Chair)

``I told the head of the communications department that I will not evade certain substantial inquiries if they come in. But I have no personal interest at all in getting into the public domain in any way.``

(Supervisory Board Chair)

``I mean, if you have to communicate something to the media as a supervisory board, then I would say quite clearly that you should do it on the record. What’s the alternative? You have a responsibility and then say, I'll tell you, but you can't quote me? I disagree with that in principle. If you have something to say as a supervisory board chair, then you should do it on the record. Or you have nothing to say. Then you should keep your mouth shut.``

(Supervisory Board Chair)

``We know the set of topics with which `{`supervisory board chair`}` wants to position himself and which he stands for. And then we look at the topics from `{`the company`}`. And then, of course, he gets suggestions, but he also follows it all very, very actively.”

(Public Relations)

``I was tasked by the chair of the supervisory board to coordinate talks with relevant investors that we agreed on together in advance and then also to accompany them.``

(Investor Relations)