Proxy Season Preparation: Navigating The Perfect Storm
Companies will be able to weather this proxy season’s “perfect storm” by putting in place appropriate policies and procedures that will develop the necessary disclosures. In addition to providing the newly-required disclosures, it is important to adequately address ongoing shareholder concerns through clear and concise proxy statement disclosures as well as through other means of communication. In this regard, engagement with shareholders, including engagement with retail shareholders given the loss of broker discretionary votes in director elections, is critical. The preparations undertaken this year will help ensure a successful proxy solicitation this proxy season, while at the same time laying the groundwork for the potentially more challenging proxy seasons that lie ahead.