Shannon Rochford is a Director in NYSE Euronext’s Global Corporate Client Group. In this role, she is responsible for managing the...
Since SEC rules now let shareholders vote on issues such as compensation, it is a matter of time before investors will soon be able to weigh in on an abundance of topics. A recent article in NYSE Magazine offers a few best practice ideas to consider in your communications based on the opinions of a panel of experts including ASCS, ISS and Society of Corporate Secretaries & Governance Professionals, Inc. Did you happen to notice that NYSE magazine is now available online and is capable of being downloaded?
The idea is relatively simple, when you want someone to embrace your point of view and side with you in a decision, what do you do? No, you don’t bribe them with chocolate! You communicate your goals, mission and educate them on why you feel that way, right? Same general idea for shareholder communication. To ensure that you will receive the support that you desire on key issues, it’s important to ramp up outreach to educate and engage investors. In the new disclosure environment, the most successful boards will be those that get in front of shareholders with credible messaging and encourage feedback through new lines of communication in advance of the proxy vote.
To close the communication gap between boards and investors there are 3 things that you can do:
Preparation, open communication and execution is the name of the game.