14 Apr. 2011 | Comments (0)
“We would like to introduce a forum where investors can pose thoughtful questions and challenges, and hear directors’ views that are not filtered by management or by proxy advisory firms. The ‘Fifth Analyst Call’ would also serve as an efficient mechanism for issuers to reach beyond the handful of their largest investors to their broader investor base. A recorded call is easily posted on the company’s website for wider market access.”Another group of global institutional investors that include T. Rowe Price and Walden Asset Management also called for a similar forum back in February, according to a client memo from Foley & Lardner. That memo explains how the call got its moniker: the call would be similar to the four quarterly earnings calls, except that it would be held just before the annual meeting. “The call would follow the public filing of the company’s proxy statement for the annual shareholders meeting, but would precede the meeting by 10 to 15 business days,” the Foley & Lardner memo states. According to Foley & Lardner, the call would be limited to:
- Utilization of rights and responsibilities embedded in the Dodd-Frank Act to encourage good governance by issuers and responsible ownership by investors.
- Enhancement of investor understanding of the company’s governance strategies.
- Facilitation of dialogue on governance matters and, to enable more informed shareholder voting, concerning the contents of the proxy statement.