There are several benefits for a founder or CEO to report to shareholders, including:
Transparency: Regular reporting helps build trust and transparency with shareholders by informing them about the company's performance and plans.
Accountability: Regular reporting holds the management team accountable for the company's performance and allows shareholders to hold management responsible for any underperformance.
Communication: Regular reporting allows the management team to communicate with shareholders and address concerns.
Attracting and retaining shareholders: Regular reporting helps to attract and maintain shareholders by providing them with the information they need to make informed decisions about their investments.
Improving decision-making: Regular reporting helps management identify issues and opportunities early on, allowing them to make more informed decisions about the company's future.
Compliance: Regular reporting helps companies to comply with regulatory and legal requirements for publicly traded companies, such as filing financial statements and other disclosures with the proper authorities.
Enhancing the company's reputation: Regular reporting helps to improve the company's reputation by demonstrating that the management team is committed to transparency and accountability.
Share price: Regular reporting helps to keep shareholders informed about the company's performance and plans, which can help to maintain or improve the share price.
Raising capital: Regular reporting helps to demonstrate to potential investors that the management team is committed to transparency and accountability, which can make it easier to raise capital in the future.
About the Author
Adam Ryan is a Professor of Practice (Adjunct Professor) at Monash University and is a principal at Watkins Bay. Adam has over twenty years of start-up experience in Australia and the USA. An expert in Company Structuring for Innovation, Strategy, Mergers & Acquisitions, and Capital for early and growth-stage businesses.
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