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 […]
The National Investor Relations Institute released its study on e-proxy use, detailing the reasons that 44% of polled companies planned NOT to use the e-proxy process in 2008.
Among the reasons given include:
Awaiting lessons learned from 2008 adopters… 65%
Not required to in 2008 under SEC rules… 36%
Printed materials have value as marketing tools… 32%
Concerned about logistics/coordination… […]
Dominic Jones at the IR Web Report hits another homerun with his great piece detailing the problems with the e-proxy system.
Despite its popularity with IR departments and efficiency in delivery, e-proxy systems are surprisingly not that popular with investors.
For more, click here.
Jeffrey N. Gordon has released a draft of his forthcoming paper titled Proxy Access in an Era of Increasing Shareholder Power: Forget Issuer Proxy Access and Focus on E-Proxy.
A bit dry reading for one sitting, but his abstract, as published at The Harvard Law School Corporate Governance Blog, provides salient points:
The current debate over shareholder […]
