Why do some listed company Managing Directors dislike shareholders so much (and get away with it)?

The job of listed company MDs is often binary - share price goes up, you're doing a good job, Share price goes south, you're doing a terrible job.

Maybe this explains the lengths that some listed company MDs go to in order to avoid interacting with shareholders.

Thankfully its only a small minority, however it still astounds me that some MDs feel that shareholders are somehow beneath them, rather than (rightfully) viewing them as the owner and effectively their employer.

Here's a few examples:

• Management contact details withheld - While some MDs are happy to list their email and mobile details on announcements and presentations, making themselves available to media and broker queries, some still try to get away with admin@... email addresses and reception numbers only.
• Screening phone calls - I had a client a while back that used an answering service to filter ALL calls into the company. You literally couldn't get through unless the MD had specifically given you their mobile number. All other calls were filtered, with only a few being replied to.
• Sporadic newsflow - Shareholders and investors need to be kept up to date with the latest activities and newsflow. It's how investors get an understanding of when the best time to buy or sell. I recall one successful company that listed just over a year ago and, apart from statutory filings, has only put out a handful of announcements in that time.
• Abusing shareholders and investors - Probably more at the extreme end, I've sat in rooms where MDs have walked out of broker meetings rather than answer probing questions. Similarly, I recall an instance in Hong Kong where an MD cut short the meeting and literally threw the investor out because they queried the grade of the project.

You could add to this list writing announcements designed to only be understood by geology graduates, presentations that send you to sleep or a complete failure to embrace (or even acknowledge) social media channels.

It is no wonder that some shareholders feel the need to vent their frustrations on trading platforms such as Hot Copper.

Shareholder engagement doesn't mean that you have to spend half the day on the phone to shareholders with $50 worth of shares.

A good shareholder engagement strategy includes having regular and well drafted announcements that provide context for the newsflow. If you provide a realistic timeframe for events and avoid surprises (if possible), shareholders should be able to understand what your strategy is, how you plan to achieve it and what success looks like.

Being available for media outlets, analysts and brokers allows the MD to refine the messaging, hit the key points and allow these voices to amplify your story. This of course only works if the MD actually understands the value proposition and can communicate it.

If they can't, there are plenty of other places to put your money.....