By Kerry Leighton-Bailey
For a long time, the AGM has always been the most important stakeholder event of the year. But to meet the new demands of investors and the questions they have all year round, companies are thinking beyond the AGM, and looking at how the IR function can deliver greater, year-round engagement.
In the past, company events such as AGMs, earnings calls and IR activities would have operated completely separately but businesses are recognizing how AGM technology can be used to make IR events accessible to a wider audience.
IR professionals are already holding innovative investor days as virtual, hybrid or in-person events – but in 2023, how does the industry take engagement to the next level?
Understanding your investors Step one to ensuring a successful, engaging IR meeting is to understand the issues that matter most to your investors. Shareholder voice is louder than ever and it’s crucial that IROs identify ahead of time any questions investors might have. Looking back to the company’s last AGM can provide a strong indication of what to prioritize at future IR events.
For example, last AGM season, more than 31 percent of board-proposed solutions were voted against, particularly in relation to director pay and remuneration. With this knowledge in mind, businesses can prepare for similar topics to surface at IR meetings and confront them, demonstrating any progress or response.
At the same time, IR meetings should be scheduled ahead of AGMs to discuss and test the water on important issues or resolutions. This ensures investor relationships aren’t left to fester, only to overspill at the AGM. Inviting directors to make regular contact with investor strongholds can also enhance future voting outcomes, thanks to a better perception of transparency and a sense of personal connection with board members.
Why hybrid and virtual are here to stay One thing is clear: virtual and hybrid meetings are no longer viewed as a knee-jerk reaction to extraordinary circumstances during the pandemic. In fact, the reality is that hybrid and virtual meetings are essential, not only for good governance but also to ensure greater accessibility for investors.
As well as opening meetings to a wider demographic of people, hybrid and virtual meetings increase engagement. At Lumi, we’ve seen twice as many participants attend and ask questions at virtual or hybrid AGMs and IR events as they do at solely in-person events.
This shows there was never an engagement issue – it was an accessibility one. There’s no doubt that the hybrid meeting format will prevail as the standard for the industry in 2023.
Technology needed to thrive in digital environment With hybrid becoming the norm, the priority needs to be implementing technology that creates accessibility and parity. That means making sure virtual or hybrid meetings are as inclusive as possible and that remote shareholders have parity with any in-room participants. We have already seen a huge increase in adoption across our client base, and it has been pleasing to see the conversations have moved on from why we should do this to how – and in some cases to ‘how can we do this better?’
Embracing digital solutions that allow debate to thrive virtually is key. Q&As are the cornerstone of any successful investor meeting and innovative solutions like virtual microphones and built-in messaging tools also enable virtual participants to ask questions within the natural flow of a meeting. Questions can either be prerecorded or presented live during the meeting. Built-in messaging functionality also allows board members and appointed moderators to send direct replies to shareholders throughout the meeting, improving live communication and engagement.
In addition to this, organizations are giving due consideration to the steps they can take to make the online experience feel multi-dimensional. This includes adding a more cinematic feel to any prerecorded elements or having your board positioned more informally.
While inclusivity is a priority, so is simplicity. There is no point in hosting a hybrid or virtual meeting to broaden representation if it only speaks to the digitally literate. The process should be simple to attend, the Q&A session must be easily accessed and all stakeholders need to feel comfortable with the technology.
IR meetings in 2023 At a recent IR forum I attended, only 6 percent of IR professionals said getting management back out on the road for in-person events was a priority. Flying CEOs and executives around the world for meetings when there are digital solutions available drains resources and energy.
Of course, there will always be a place for physical events but embracing innovative technology that replicates and enhances the in-room experience is the future of IR meetings. If IROs don’t embrace new solutions in 2023, they’ll miss out on fantastic opportunities to strengthen their business and connect with engaged shareholders all year round.
Lumi is the leading digital platform facilitating in-room, hybrid and virtual AGMs and stakeholder engagement events for the world’s largest corporations, membership organisations, associations, legislative bodies, faith-based organizations and partnerships.
It is the only platform that digitizes the entire life cycle of a meeting in a single solution that enables sophisticated meeting facilitation before, during and after a live meeting, including authenticated registration, live secure polling, market-leading Q&A management and relevant reporting.
lumiglobal.com
