US firms love e-proxy savings, but at what cost?
DESPITE the risk that they might be reaping short-term gains while laying the foundation for long-term pain, 566 US companies used notice-only e-proxy mailings for their shareholder meetings by the end of April. According to figures compiled by Broadridge Financial Solutions Inc., companies have saved about $132 million through lower print and mailing costs. Unfortunately, [...]
If retail investors don’t matter, IR is in trouble
RETAIL investors’ direct ownership of U.S. stocks has dwindled to new lows. According to a survey released by the Conference Board, institutional investors owned 68% of the top 1,000 companies in 2005. To put that in perspective, consider that in 1950 individual investors directly held 92% of stocks. Today they own just 32%. Indirect ownership [...]
Dear Directors: You’re Screwed.
IT LOOKS like the coming proxy season in the United States is going to be the most controversial one that anyone can remember. According to the experts quoted in an excellent article on Forbes.com by Directorship‘s managing editor Joan Warner, the “central issues in the coming proxy season all point to large-scale and lasting ‘democratization’ [...]
Don’t Be a Sitting Duck for Activist Investors
Note: Updated Sept. 8, 2006 to add preliminary voting results from Heinz. By Dominic Jones SHAREHOLDER activism is on the rise. Hedge funds are wielding more clout. Proxy battles could be made easier and cheaper. New exchange rules will make it harder for directors to get votes. Majority voting for director elections is set to [...]
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