Amid notable advancements in shareholder engagement, the proxy statement remains the primary tool for investor communication. Over the years, disclosure requirements and best practices have increased the size of proxy statements and complicated their format, making it difficult for the average shareholder to find key data. With increasing pressure from investors, the need for boards to cut through the clutter and communicate effectively has never been greater. This is why we’re seeing a heightened focus on the “art & science” of proxy statement design.
Ron Schneider, the Director of Corporate Governance Services at Donnelley Financial Solutions, returns to the show to share his insights on effective proxy statements. His company has just released its 4th Annual Guide to Effective Proxies, which outlines and catalogs the examples of best practices from the most recent proxy season. In this episode, Schneider discusses:
- What’s new in the realm of proxy statements? On topics from compensation disclosure to board diversity, companies continue to experiment with proxy design. Schneider discusses several trends.
- What are the three most important things boards can do to make their proxy more effective? Citing specific examples, Schneider outlines three areas or “buckets” where boards can make significant strides in the 2017 proxy season.