In today’s uncertain market, the expectation from your investors for success can be overwhelming. When you’re being pulled in multiple business directions at once, you might not have time to handle corporate governance red flags. Companies that recognize corporate governance as a priority include a corporate governance consultant to provide valuable information and advice on this critical need.
A thorough corporate governance consultant will do this through a review of your company’s corporate governance framework, including taking a close look at the board of directors and governance provisions outlined in the proxy statement. You will gain information on how voting has turned out at annual shareholder meetings, examining proposals such as the election of directors, “Say-on-Pay” proposals and shareholder proposals.
Get ahead of potential problems
If there were concerns around the vote outcome, the consultant will analyze why this occurred and will provide suggestions to improve voting at the next annual meeting. In addition, the consultant will analyze your company’s shareholder profile and will provide information as to how investors voted at the last annual meeting, how they are likely to vote at the next annual meeting based on your governance profile and indicate whether they subscribe to a proxy advisory firm such as Institutional Shareholder Services (ISS) or Glass Lewis.
D.F. King can provide contact information for the governance teams at institutional investors that direct votes for your company, as well as proper planning and guidance for shareholder outreach and engagement - these are key to successful meeting outcomes.
Communicate more effectively, both internally and externally
One of the keys to long-term success for any organization is robust communication. This means maintaining open channels among the board of directors, management, employees and shareholders. The board and management, corporate secretary/general counsel, investor relations, and human capital management areas need to remain aligned on corporate governance issues to effectively head off crises and keep the company focused on sustainable success.
A corporate governance consultant can help with communication. For example, the company’s Investor Relations officer will know the buy/sell side managers at the institutions, but probably does not know the proxy decision-maker within the governance team at an institutional investor. The corporate governance consultant can assist by working to ensure that both the internal and external sides are aligned, and this helps the company in its aim toward a successful proxy campaign.
Avoid surprises
Nobody wants to be blindsided by unexpected developments at shareholder meetings. It’s unacceptable to walk into the room not knowing as much about your company and its investors as you possibly can – especially when things don’t go according to plan. Corporate governance consultants can level the playing field and make sure you are not taken by surprise when it matters the most.
An effective corporate governance consultant helps to eliminate any uncertainty in advance of these critical shareholder voting situations. Having a complete picture of who your shareholders are, and how they are likely to act, gives corporate officers the power to mitigate problems and take action before it’s too late.
About D.F. King
D.F. King leads the industry in strategic corporate governance advisory and proxy solicitation services with more than 80 years of experience. Our highly tenured team works closely with clients to deliver high-level custom advisory reports, shareholder outreach, and education strategies that help achieve favorable outcomes and gain greater knowledge per share.
About EQ
EQ are specialists in helping you better understand and manage the ownership of your company through critical events across the corporate lifecycle. As trusted advisors, we provide strategic insight and operations expertise through our core business units in Private Company Services, Transfer Agent Services, Employee Plan Solutions, Proxy Services, and Bankruptcy. Globally we serve 6,700 clients (49% of the FTSE 100 UK and 35% of the S&P 500), with over 40 million shareholders, through 6,000 employees in 5 markets around the world.
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