The Top Proxy Issues of 2013, and Likely 2014
IR Magazine, which covers investor relations from a global perspective, compiled a list of the top trends from 2013’s proxy season and predicted what shareholders and corporations could see in 2014. First, the top trends for 2013.
Shareholder Engagement: Not only are corporations more willing to engage with shareholders, IR Magazine says institutional investors are becoming overwhelmed with requests for meetings from the companies they invest in. Much of the desired communications surround the topic of executive compensation.
Voting Against Directors: Activist investors became more aggressive last year in forcing changes on corporate boards. A total of 19 proxy contests occurred in 2013, more than double the number in 2010. Accompanying these challenges was an increase in proposals for alternative slates of directors proposed by activist investors.
Executive Pay: The number of executive pay proposals declined to 83 last year from 116 in 2010. The majority of pay proposals made in 2013 focused on seeking to eliminate accelerated vesting of options in change-of-control (e.g., a merger) agreements and equity retention requirements for top executives.
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