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Large Company Disclosures Reveal Evolving Practices

By Randi Morrison posted 06-30-2019 09:06 PM

  

Nasdaq's newly released report based on its review of S&P 100 companies' most recent proxy statement disclosures revealed these and other noteworthy takeaways:

- Board composition & evaluation

  • 53% of proxies disclosed a “combined” diversity figure representing both gender diversity and additional attributes such as race, ethnicity, nationality or place of birth.
  • 59% included high-level disclosure of their board evaluation topics; 22% shared examples of how the results led to changes.

- Information technology/cyber

  • 85% included IT in a skills matrix or in their director qualifications narrative.
  • 52% say their boards have cybersecurity expertise.
  • 82% formally charge a board committee with oversight of cybersecurity - most commonly, the audit committee.

- Human capital management

  • 56% emphasized the importance of diversity & inclusiveness.
  • 51% disclosed HCM as a priority.
  • 48% noted board-level experience on talent matters or - more broadly - HCM.

- Environmental matters and business sustainability

  • 80% of companies - nearly all of which have a dedicated sustainability-focused website - highlight environmental or sustainability efforts as a priority.
  • 91% have a posted sustainability report.
  • 71% have at least one board committee charged with oversight of sustainability-related matters.

The report includes sample disclosures throughout, and a tabular summary of disclosure practices on page 12.

          See also "Evolving proxy statements reflect board’s changing role, Nasdaq study says" from Corporate Secretary, and additional resources on our Annual Meeting/Proxy Statement and Proxy Season pages. This post first appeared in the weekly Society Alert!

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