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Proxy Statement Design & Disclosure: Best Practices & Trends

By Randi Morrison posted 10-18-2018 10:49 PM

  

Further to our prior report: "Proxy Disclosure & Design Trends" Labrador's new report: "2018 Proxy statement benchmark analysis" expands on the results of its analysis of 238 of the Fortune 250 proxy statements (companies listed in Appendix A) filed between January 1 and August 15, 2018, with guidance on investor-friendly design, format, and disclosure enhancements, and an abundance of additional noteworthy trends, including these board composition & diversity-related findings: 

  • 71% included photos of the directors, up from 69% last year
  • 10 companies disclosed that they have a diversity policy
  • 29% include an individualized skills matrix
  • 26% include an aggregated skills matrix
  • 16% used icons to describe skills & qualifications, up from 11% last year
  • 41% included a graphic to highlight gender diversity
  • 49% used graphics to depict their board tenure, compared to 37% last year
  • 20% used graphics to depict directors' ages, up from 12% last year
  • 13% used graphics to illustrate the nomination process, compared to 9% last year
  • 16% used graphics to illustrate the evaluation process, up from 6% last year

Looking ahead, the report identifies human capital management (HCM) disclosure as top-of-mind for investors like BlackRock, which reportedly concurred with the proxy statement HCM disclosure "wish list" captured in Davis Polk Ning Chiu's post: "Top Ten Human Capital Topics of Interest to Investors."

          See also last year's "Proxy Disclosure Benchmarking" report, our recent report: "Director Skills & Qualifications Disclosures," and additional information & resources on our Annual Meeting and Proxy Season pages. This post first appeared in this week's Society Alert!

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