Annual guide showcases key topics investors expect from company proxies, including Board Diversity, Executive Compensation, Environmental, Social, Governance (ESG), Sustainability and Human Capital Management (HCM)
Donnelley Financial Solutions (DFIN), a leading risk and compliance company, released their 2019 Guide to Effective Proxies, created to help companies design proxy statements that comply with SEC regulatory requirements, meet business objectives and elevate investor communications.
Each year, DFIN releases a comprehensive review of innovative and shareholder-friendly best practice disclosures drawn from the public filings of their client base. This year’s guide highlights trends from 2019 corporate proxies and outlines what companies should include as they prepare for the 2020 proxy season. Major trends include:
- Continued focus on Corporate Social Responsibility and Environmental, Social and Governance reporting trends.
- Outlining the direct link between business strategy and the executive compensation program.
- Increased use of timelines to remind investors of the journey the company has taken, including incremental changes to their corporate governance and compensation practices.
- Infusion of company branding, making the proxy more aligned with the Annual Report, Sustainability Reports and other key documents.
- Focus on digital proxies, which are accessed by many major institutional investors.
“In recent years, ESG has become the most dynamic disclosure topic and area of investor and stakeholder interest, and that section of our annual, comprehensive Guide to Effective Proxies has rapidly evolved,” said John Truzzolino, director of Business Solutions at DFIN. “Leading companies are now using proxies to tell their strategic ESG story, which helps investors get a clearer picture of long-term value.”
The trends in proxy disclosure mirror larger macro-economic factors facing all companies today. Institutional investors and corporate boards are increasingly applying the measurement of these broad issues to evaluate the health of a company, forcing businesses to transform the way they develop and shape their proxy stories.
“No longer simply a compliance document, leading proxies today are viewed as strategic communications vehicles that provide institutional investors and stakeholders with the essential information they need to make critical business decisions,” said Craig Clay, president of Global Capital Markets at DFIN. “Our annual guide has become a trusted resource for companies looking to take their proxy to the next level and showcase topics that are front of mind for investors.”
DFIN remains the number one provider of proxy filings, assisting more than one-third of U.S. companies with their proxy statements, including printing SEC filing, distribution, web-hosting and providing counsel on strategy, content and design.
To learn about key hot topics in this year’s guide, click here to register for the Guide to Effective Proxies Webcast on October 17, 2019.
About Donnelley Financial Solutions (DFIN)
DFIN is a leading global risk and compliance solutions company. We provide domain expertise, enterprise software and data analytics for every stage of our clients’ business and investment lifecycles. Markets fluctuate, regulations evolve, technology advances, and through it all, DFIN delivers confidence with the right solutions in moments that matter. Learn about DFIN’s end-to-end risk and compliance solutions online at DFINsolutions.com or you can also follow us on Twitter @DFINSolutions or on LinkedIn.
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