10 questions you didn’t know you could ask at an AGM

As an investor, AGMs give the opportunity to engage with a company's leadership and gain insights into its operations, strategy, and future. Whether attending in-person or virtually, it is important to dig beyond the usual financial performance questions. Here are 10 questions you didn’t know you could ask at an AGM that can provide insight into a company’s direction, governance, and values.

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1. What measures are in place to address gender and ethnic diversity on the board?

Investors usually focus on financials, but diversity plays a crucial role in long-term success. Asking about board diversity shows you're thinking beyond profits - focusing on a well-rounded, inclusive leadership structure. A company’s approach to diversity is also a sign of their commitment to modern governance. You can even enquire about a timeline to track and measure their progress on inclusivity.

2. How is the company managing climate risk and regulations?

Even though ESG reports are commonplace, investors often overlook specific questions about how companies are preparing for environmental regulations. This question investigates the company’s sustainability strategy more closely, which can affect long-term profitability and risk. Your question can be as detailed as you like, even asking specifically about carbon reduction strategies, renewable energy usage or how they are preparing for future regulatory changes such as mandatory climate reporting.

3. What steps are being taken to improve workplace safety, and what has been learnt from past incidents?

Companies do provide reports on safety incidents however, investors don’t ask for details on the lessons learned. Asking about safety protocols, staff training, and cultural shifts showcase a company’s ethical responsibility and ability to prepare for future risks. It also reveals how the company manages its reputation, strengthens corporate culture, and mitigates regulatory risk, all of which are crucial for long-term business stability.

4. What is the long-term strategy for improving the share price?

If the company has struggled with chronic share price underperformance, leadership should have a clear strategy for improvement. Ask about their plans for growth, cost management, and how they aim to increase shareholder value over time. This is a great indicator of accountability from the board.

5. How does the board ensure that it is not over-boarding?

Director workload seems to be a taboo topic however, when not properly addressed, over-boarding can severely limit board effectiveness. Bringing this up ensures that directors are fully focused on their roles, leading to quality leadership and strong governance practices. It also highlights whether the board is taking steps to prevent burnout and ensuring that directors can dedicate sufficient time to the company at hand.

6. How is the company addressing cybersecurity and risk management?

With the increasing number of cyber threats, it is crucial to understand how the company is protecting its data and infrastructure. Make sure to ask about the company’s cybersecurity strategy, risk mitigation, future-proofing, and how they are currently responding to industry-wide threats.

7. What steps are being taken to improve corporate reputation and trust with stakeholders?

If the company has seen recent controversy such as scandals or ethical breaches, ask about the company’s approach to reputation management and regaining shareholder trust. Are there new governance structures, cultural changes, or public relations efforts to rebuild the company’s image?

8. How does the company balance executive compensation with overall performance and shareholder returns?

Executive pay is often a hot topic at AGMs. Surprisingly, investors rarely investigate the specific relationship between executive remuneration and company performance. Asking questions about bonuses, company milestones and balancing mechanisms shows that investors are interested in fairness and accountability, not just the financial figures.

9. What are the company's plans to innovate and stay competitive?

In fast-changing industries, it's essential to know how the company plans to adapt and innovate. Ask about their R&D investments, plans for new products or services, and strategies to stay ahead of competitors.

10. What is the strategy for addressing investor concerns and ensuring transparency?

Transparent communication with retail investors is notoriously poor from listed companies. It is easy to assume that companies listen to their investors, but asking directly about how they plan to improve communication with shareholders, address negative feedback and provide updates emphasises the importance of two-way communication.

AGMs are your opportunity to ask key questions that go beyond financials, providing deeper insights into a company's governance and strategy. But ever wondered about asking questions outside of the AGM? Diolog allows you to engage with companies in real-time, before, during, and after AGMs, ensuring continuous transparency and open communication. Download the Diolog app today to connect directly with the companies you invest in here.