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Effective Proxy Disclosure: Here's How!

By Randi Morrison posted 10-22-2020 09:58 PM

  

"Key Proxy Statement Disclosure Trends - Beyond Compliance" from Argyle and King & Spalding highlights good proxy disclosure across a broad range of topic areas. Each disclosure topic is presented with a number of 2020 proxy statement excerpts that illustrate current trends and investor expectations (accompanied by a link to the full proxy), and King & Spalding's associated disclosure tips for the 2021 proxy season.

Coverage areas include:

  • Business Highlights
  • Corporate Culture
  • Corporate Purpose and Values
  • COVID-19
  • DE&I
  • Human Capital Management
  • Proxy Voting Summaries
  • Sustainability & Corporate Responsibility

The firms' "Key Proxy Statement Disclosure Trends - Executive Compensation" similarly provides examples of effective executive compensation disclosure based on 2020 proxy statements that can inform companies' disclosure for the upcoming proxy season. Coverage areas include:

  • CD&A Executive Summary
  • Compensation Philosophy & Program Objectives
  • Pay-for-Performance Alignment
  • Strategic Objectives
  • Commitment to Long-Term Value
  • Individual Performance Scorecards (CEO/NEO)
  • Peer Groups
  • Retirements & Benefits Disclosure
  • Director Compensation

Although not addressed on a stand-alone basis, trends in the use of graphics, colors, and other visual design elements to convey information in a way that promotes readability are apparent throughout both publications.

          See also Argyle's "Key Trends in Annual Reports" showcasing annual report disclosure trends (e.g., corporate purpose, ESG, COVID-19) based on the 2020 reporting season; these recent reports: "Proxy Disclosure Benchmarking: Board Race/Ethnicity & More" and "Proxy Disclosure: Samples Galore!"; "Audit Committees: Proxy Disclosure Benchmarking"; "ESG Proxy Disclosure Examples"; and numerous additional resources on our  Proxy Statement page. This post first appeared in the weekly Society Alert!

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