Activism accelerating convergence

The convergence of the IR and corporate secretary functions has been taking place over the last few years now; in 2013 it may be more important than ever to consider implementing policies that facilitate interaction between the two functions. In 2012, it was clear there was a need for an increased emphasis on shareholder engagement, and the corporate secretary and investor relations officers at most companies will need to work much more closely together in order to stay on top of shareholder activism in the future.
 
This week, a number of companies issued poor earnings reports, triggering stock market sell-offs, which may motivate institutional investors to take a greater interest in how the companies they invest in are run. Corporate secretaries must collaborate with the investor relations team and the board of directors to reduce or eliminate the fears and concerns of significant shareholders and instead inspire confidence about the long-term growth of the company.
 
How can the corporate secretary and IR functions work better together?

With all of the special considerations that are now needed to get investors on board with say-on-pay votes, the approval of directors and other governance issues, IR and the corporate secretary must combine elements of best practices in governance, corporate strategy, communications savvy and salesmanship to keep investors properly engaged. Shareholder lawsuits over compensation, campaign contribution disclosures and other governance matters are becoming more common, and IR may need to communicate the concerns of investors more forcefully to the corporate secretary and the board, so that policies can be adjusted before they turn into a major proxy fight or embarrassing negative vote during proxy season.
 
Co-operation between IR, the corporate secretary and the board requires planning on a level some companies may not be used to. To help you consider what might be needed to deal with the ongoing convergence of investor relations and the corporate secretary functions, Corporate Secretary and IR Magazine are producing our first ever joint event – The IR Magazine Corporate Secretary Think Tank 2012, scheduled for November 29 in Chicago.
 
For the first time, investor relations officers and corporate secretaries will come together in an off-the-record, peer-to-peer setting to discuss the challenges they face in the age of shareholder activism and how they can work together for the long-term benefit of their companies. We invite you to attend, and to bring your counterpart from the investor relations department, so you can work as a team to come up with strategies that will benefit your company. The event is free of charge and includes panel discussions, networking, breakfast and lunch.
 
Don’t delay: register today!