From shareholders to CEOs: finding stories in annual meetings

By Flickr user Kevin King

It’s not often that a corporate chief is so reviled his detractors start a Facebook page calling for his arrest on homicide charges. 

  But that’s the case this year for Don Blankenship, CEO of Massey Energy, owner of the West Virginia mine where 29 workers died underground in April.   The company’s annual shareholders meeting is slated for May 18 and institutional investors are raising questions about the company’s leadership as well; with one board member already resigning.  The Richmond, Va.-based company is firing back through press releases and letters to investors. It ought to be an interesting get-together. 

 Few companies are embroiled in that sort of drama.  But as this recent article from Time points out, shareholder proposals are on the rise.   Here’s a RiskMetrics Group round-up that shows the type and variety of proposals on the slate this year.  Not surprising in the wake of corporate meltdowns, bailouts and alleged behind-the-scenes shenanigans at big banks, quite a few involve executive compensation, the ability of shareholders to call special meetings and other governance matters. 

 If you haven’t already reviewed the proxies of key companies you cover, now would be the time to double check them.  And it’s also a quick way to catch up with the publicly traded firms in your area that tend to fall under the radar screen.  Even if they don’t make much news the rest of the year, their relationship with investors may provide some interesting fodder. 

 It’s always a good idea to attend annual meetings if you can.  Dates and locations are listed right on the proxy statements, which are online at the Securities and Exchange Commission’s EDGAR database.  The meetings are a good place to mingle with corporate executives and to beef up your contacts list with the names of active shareholders, directors, analysts, bloggers, community leaders with corporate ties and other stakeholders. 

Be aware that you have no automatic right to attend annual meetings, unless you own shares of that company.  As this Reuters story points out, companies can indeed bar the press from their private meetings, which Boston Scientific plans to do on May 11. 

Most don’t, but you should check in advance and have a Plan B – notes from an analyst, embargoed copies of executive speeches, etc. – in case you are denied admittance. 

Some companies spice up their meetings with a little pizzazz, including entertainers, goody bags for attendees and other festive touches.  Others go as no-frills as possible, treating the event – which is mandated by securities law for publicly traded firms – as a necessary evil.  Some large, household name firms get surprisingly little turnout. 

One interesting story would be the effect of technology on participation by shareholders.  This company, BroadRidge, offers live streaming services; — no doubt they’re not alone.  Talk with the investor relations pros in your area about new trends in meetings, including Web casts, online proxy voting, podcasts and other offerings that make it easier for far-flung investors to attend.