Most effective/innovative use of technology
Intel
Leading the way for other companies is a challenge Intel gladly takes on. ‘We are a technology company and we strive to be cutting edge,’ says Irving Gomez, assistant secretary and senior attorney in the corporate legal group.
Intel was a standout winner in the most innovative/effective use of technology in a governance program category, mostly because of its groundbreaking virtual stockholder meeting and use of live online voting. The judging panel felt the ‘virtual annual meeting set a new standard by which all annual meetings will soon be measured.’
‘Attendance at our annual meeting had been declining for years and, considering the cost and time involved in putting it together, we determined that moving toward an online meeting would be an effective way to boost attendance and participation – especially among retail investors,’ Gomez explains.
While the meeting was successful, the decision was not taken lightly, and did not happen overnight. The company has broadcast its annual meeting on the web for many years, but adopted a new platform in 2009 that increased the opportunity for web voting and Q&A. ‘We did the virtual meeting in May and a modest physical meeting,’ Gomez says. ‘We wanted to test the new technology so we held the hybrid meeting and it worked very well. It was a wonderful experience for both the company and the stockholders, so for 2010 the plan is to go 100 percent virtual.’
For others contemplating a virtual meeting, a few things need to be considered, the most important of which is attendee validation. ‘We wanted to be able to verify that those asking questions were really stockholders, just like you would do at an in-person event, and they needed to be able to vote live,’ says Gomez.
He also highlights the importance of the ‘look and feel’ factor. ‘We are experienced in webcasting our meetings and have a professional production company that helps put it all together,’ he says. ‘Additional features such as professional-quality video, audio and interactive access are what make it work. This can be a big hurdle: if you do not have this structure in place, it can be very expensive. We already have the technology and the staff with the expertise. For a small company, it might turn out to cost the same as holding an in-person meeting.’
Intel also makes intelligent use of technology across many other aspects of the governance program, including its constantly updated directors’ and officers’ questionnaire database.
