E-proxy failing? Intel may offer the solution
Our friends at CorporateCounsel.net have highlighted recent data on e-proxy usage, indicating that the current system is failing to increase participation by retail shareholders. In fact, e-proxy is causing a decrease in participation.
“Retail vote goes down dramatically using e-proxy (based on 80 meeting results); number of retail accounts voting drops from 19.2% to 4.6% (over a 75% drop) and number of retail shares voting drops from 30.1% to 23.3% (a 23% drop)”
Why has e-proxy hurt participation?
Perhaps it’s just the packaging. According to Dominic Jones at IR Web Report…
“Every other company that has taken advantage of notice-and-access so far this year has failed to provide their online proxy materials in a format that is convenient for online reading, one of the requirements under the SEC’s e-proxy rules. In easily 80% of cases, companies are posting their information in template-based documents from big vendors where the text is in images or Flash and so cannot be used in several fundamental ways. Navigation in these cheap, mass-produced documents is also woefully inadequate, particularly for older users.”
In a great post worth reading, Dominic praises Intel’s recent e-proxy format and design.
