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How technology plays a role in transforming corporate proxy season
Proxy season is a crucial time for public companies, especially for shareholder involvement and decision-making. With digital platforms acting as transformative facilitators that have reshaped creation, publication and distribution of proxy statements, paper-based documents have quickly evolved into dynamic digital statements.
As organizations continue to navigate regulatory demands and shareholder requirements during proxy season, technology, like board portal software, can help firms streamline proxy material production, as well as help improve efficiency, transparency and engagement at every stage of the process.
Essential proxy season best practicesWhen preparing for the release of a proxy statement, there are two important elements boards should pay close attention to. First, it is critical to establish and maintain relationships with top shareholders to carve a path toward clear communication channels, supporting proactive engagement with them.
Another best practice is to regularly review corporate governance policies to help ensure alignment with evolving regulatory standards. As said standards are constantly evolving, it is important to stay in the know to provide accurate information to pertinent parties.
More than just financial disclosure Proxy statements detail important company operations, executive compensation and corporate governance processes. They help empower shareholders to make informed decisions. Overall, publishing a proxy statement is an opportunity to reveal more than just company financials. There are different factors that can be derived from transparency and reporting.
Proxy statements can be viewed as the window into the rationale behind strategic decision-making and help stakeholders understand the strategic direction the company is heading in. Proxy statements can also be helpful in providing a comprehensive view into corporate governance structures and practices the company abides by.
Leveraging technology during proxy season There are several ways in which technology, like board portals, artificial intelligence (AI) and other formats can aggregate and help improve the proxy development process, from creation to publication and distribution.
Board portal software: This can help facilitate collaboration by offering a centralized platform for documentation sharing and version controlling, as well as real-time discussions.
Board portal software designed with added security, like Nasdaq Boardvantage®, may help protect data in documents that are referenced or used in the proxy development process. Corporate governance teams can also leverage features like end-to-end encryption, control and access rights, and even multi-factor authentication access, especially when security is top of mind.
AI: With AI, corporate governance teams and boards can streamline the aggregation and analysis of large volumes of data, helping reduce the amount of time spent on manual research and other critical responsibilities. Other potential benefits of AI include providing deeper governance insights, identifying key trends, executing timely data collection and advancing decision-making processes to allow for more accurate information included in proxy statements.
Hybrid and remote communications: Interactions and engagement with and among shareholders may also become more efficient with the help of technology.
As the virtual boardroom has become more of a norm in recent years, it is important that conversations, planning and preparation surrounding the production of proxy statements remains confidential. Adopting secure virtual communication platforms, as well as encouraging participation in online polls, Q&A sessions, discussion forums and AGMs can foster real-time engagement, effectively enabling boards to address concerns and gather feedback promptly.
The evolving digital landscape and the availability of innovative technology such as board portal software can help facilitate major board decisions, advance strategic vision, distribute important proxy materials and drive governance excellence.
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