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Posts tagged “investor relations”

How MiFID II challenges the sell-side status quo

There is a lot of discussion on Wall Street regarding the new European rules regarding payment to securities firms for stock research (sell-side research). The research, often industry specific, provides company reviews and earnings forecasts, usually with a buy/sell recommendation.

In the EU in early January 2018, payment for sell-side research was put under strict rules called MiFID II (Markets in Financial Instruments Directive II). The aim of the new rules was to curb supposed excesses because they were sometimes used to cover high trading costs, expensive subscriptions and non-research items.

In the past, trading was part of the money management business and the commissions were to be used at the discretion of the manager. The client had little or no…

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Talking about tax reform during earnings season

Most public companies remained circumspect at best in their comments about the federal tax reform legislation as it took shape last summer and fall and even as the Tax Cuts and Jobs Act was signed into law.

Now, though, with the quarterly earnings season underway, virtually every company is saying something about tax reform – the impact on its corporate tax rate, earnings, cash flow, customers and markets, and more. And it probably won’t be the last time they address the subject. What lessons can companies take away from how early reporters have addressed federal tax reform?

While a handful of companies have limited their discussion to the bare bones, the majority appear to be taking a deeper dive. As the Wall Street Journal wrote, “Some of the biggest U.S.…

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The uphill battle to take down the ‘merger tax’

Merger objection class-action lawsuits have been the bane of public companies for going on a decade. Each year from 2009 through 2015, somewhere between 84 percent and 94 percent of all merger transactions over $100 million were challenged by at least one shareholder class-action lawsuit. In the January/February 2018 issue of the National Investor Relations Institute (NIRI) magazine IR Update, I write about the efforts of jurists and activists to clamp down on meritless merger suits and the maneuvers of opportunistic plaintiffs’ law firms to keep the six-figure fees flowing.

Read the full IR Update article here.

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5 ways to get SEO value from the investor relations website

In the Search world, creating relevant content about your company and products/services is at the core of a strong ongoing strategy. Investor Relations reporting is a guaranteed stream of content being generated at a publicly traded company. Because creating content can be the bane of an SEO program, investor relations can be a gold mine for easy SEO opportunity.

With the demands of Investor Relations reporting, having a strong online platform to manage investor relations needs takes on a great deal of importance. To be time- and cost-effective, many Marketing Communications teams turn to externally hosted platforms for these services. 

Although building an investor relations site as part of your corporate website allows for ultimate flexibility, costs and project…

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Improving your proxy statement’s reader experience

Proxy statements have emerged as a key channel for telling a company’s story to shareholders and are a valuable tool for management and Boards. And proxies continue to become more robust – getting longer with more detailed disclosure; and the inclusion of infographics, charts and checklists are making key information more scannable and prominent. 

Content and design improvements are also being made to the shareholder letter, table of contents, company overview, and the proxy summary. Seventy-nine percent of companies included a proxy summary in 2016 (up from 39% in 2012) and 77% used color in their CD&As (up from 48% in 2012) based on Equilar’s 2017 Innovations in Proxy Design study, which examined proxies from the S&P 100. Companies are also increasing their use…

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