On today’s episode, we’re joined by Tom McNeill and Donald Kalfen, both Partners at Meridian Compensation Partners, LLC. They explore the strategic importance of engaging with shareholders on executive pay, highlighting best practices for proactive and reactive engagement.
Key Takeaways:
(03:46) Most large public companies engage with shareholders regularly, often well before proxy season.
(06:06) Engagements often occur in late summer and fall when proxy advisors and shareholders are most receptive.
(06:53) Ongoing dialogue with shareholders is crucial for building trust and addressing concerns proactively.
(08:10) The compensation committee chair or a non-executive chair typically participates in engagements.
(09:17) Proxy solicitors and investor relations teams play key roles in arranging discussions.
(11:25) Robust proxy disclosure improves transparency, including details on the nature and outcomes of shareholder engagements.
(13:00) Companies receiving less than 70% approval on say on pay votes should engage with shareholders to address concerns.
(13:31) Companies must avoid disclosing material non-public information to individual shareholders during engagements.
(15:22) Consult counsel and take their advice on proper methods to reveal material non-public information.
Recources Mentioned:
https://www.linkedin.com/in/tom-mcneill-87722312/
https://www.linkedin.com/in/donald-kalfen-baa44b30/
Meridian Compensation Partners, LLC
https://www.linkedin.com/company/meridian-compensation-partners-llc/
This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.
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