2018 Proxy Push
Many of you are in the “proxy push” to get the proxy statement filed in the coming months.
The amount of detail required, and requested, can make the exercise a challenge for all involved. The question is: Are you spending your time effectively on the right parts?
A recent survey found the following sections of a proxy statement as the most commonly read sections:
• 45% A summary at the beginning of the proxy (if included)
• 43% The summary compensation table
• 38% The CD&A discussion of long-term incentives or equity awards
• 26% The description of directors’/nominees’ skills and qualifications
• 24% A summary at the beginning of the CD&A (if included)
• 24% Any description of shareholder engagement efforts
• 24% The director/nominee biographies
Additionally, the survey found the following sections as the most important to inform investors as to how to vote:
• 64% Pay for performance alignment
• 62% Director independence
• 62% Performance metrics
• 59% Director nominee descriptions, their quality, qualifications and skills
• 59% Corporate governance profile (including shareholder rights and anti-takeover measures)