Shareholder Engagement – Alliance Advisors https://allianceadvisors.com/ko/ A full service proxy solicitation and corporate advisory firm Mon, 17 Mar 2025 22:24:54 +0000 ko-KR hourly 1 https://wordpress.org/?v=6.8.3 https://e4h8grreyn6.exactdn.com/wp-content/uploads/2023/01/cropped-favicon.png?lossy=1&resize=32%2C32&ssl=1 Shareholder Engagement – Alliance Advisors https://allianceadvisors.com/ko/ 32 32 Case study: Say on Pay – Stock Option Plan https://allianceadvisors.com/ko/post-shareholder-meeting-engagement/ Tue, 29 Aug 2023 09:21:56 +0000 https://allianceadvisors.com/post-shareholder-meeting-shareholder-engagement-proxy-logistics-shareholder-meeting-advisory-retail-outreach/

Assignment and Challenges

In 2022, in its first year as a public company SPCE struggled to get enough votes for its shareholder meeting and the vote came in only two days before the meeting date.

SPCE in 2023 was facing a difficult vote on proposals for Say on Pay and a vote to approve the company’s stock option plan. To add another layer of difficulty the shareholder base is skewed towards retail holders who are notoriously apathetic voters.

Solution

Alliance Advisors designed a 4-phase, year-round program designed to take the guess work out of the shareholder meeting process.

Phase 1: Post-Shareholder Meeting Engagement. This phase starts as a postmortem on the 2022 meeting. We analyze who the largest institution and retail shareholders are and compile stats on how they voted. This is followed by an outreach campaign to position the company in front of and communicating with its largest shareholders. The data collected from Phase 1 allows Alliance Advisors to project how compensation proposals will be received for the next shareholder meeting, before they are put before shareholders.

Phase 2: Proxy Logistics. This is a single source solution that allowed the company to rid themselves of details such as regulatory filings, printing meeting documents, arranging for distribution of materials and set up for a Virtual Meeting.

Phase 3: Shareholder Meeting Advisory. In this phase we coordinate outreach to institutions including setting up calls, preparing management to dialogue with institutions. We provide investor dossiers, identify proxy advisory firms (ISS/Glass Lewis) influence on voting decisions, and coordinate investor follow up.

Phase 4: Retail Outreach. Since SPCE has a significant percentage of its shares held in retail hands we use proprietary technology to reach registered and NOBO investors. We gather votes on digital voting platforms via phone campaigns, emails and text messages.

Results

Despite some institutions choosing to not support the Say on Pay proposal, Alliance Advisors strategy of coordinated solicitation across the entire shareholder base worked. All proposals passed by a majority vote.

]]> Case Study: Previously, Failed Say on Pay Proposal Compensation Advisory, Shareholder Meeting Advisory https://allianceadvisors.com/ko/compensation-advisory-case-study/ Thu, 29 Jun 2023 09:39:37 +0000 https://allianceadvisors.com/case-study-compensation-advisory-shareholder-engagement-proxy-solicitation/

Assignment and Challenges

Compensation advisory case study
Our client is a NYSE $2 billion market cap company that provides engineered products, industrial technologies, and solutions in the United States and internationally. Institutions owned over 90% of the outstanding shares. Prior to becoming an Alliance Advisors client, this issuer failed Say on Pay in 2022. Alliance Advisors was retained to advise the client on matters related to the failed vote and how to respond successfully for their 2023 annual meeting.

Solution

  • Alliance Advisors provided commentary and guidance on the proxy statement, with a particular focus on disclosure regarding the response to the failed Say on Pay vote in 2022.
  • We prepared vote projections under various scenarios including voting on directors on the Compensation & Management Development Committee and on the Say on Pay proposal.
  • Our Corporate Governance team provided background information and outreach efforts on the top 50 institutions. This included setting up calls with the appropriate contacts at each institution.
  • We provided advice and guidance after ISS recommended voting against Compensation & Management Development Committee members and voting against the Say on Pay proposal. We worked with our client to draft a response to the ISS recommendations and submitted the response to ISS on our client’s behalf.

Results

After filing the company’s response. ISS reversed its against recommendations and recommended that shareholders support all directors and Say on Pay.

In addition, all directors were elected with over 95% of the shares voted, and over 75% of the shares voted in favor of the Say on Pay proposal.

Alliance Advisors is now working with the client in preparation for the 2024 annual meeting including arranging off-season institutional outreach and assisting in drafting of ESG disclosure.

]]> Case Study: Activism https://allianceadvisors.com/ko/south-korean-consumer-products-company/ Fri, 16 Jun 2023 07:07:23 +0000 https://allianceadvisors.com/south-korean-consumer-products-company/

Assignment and Challenges

South Korean consumer products company
This $7 billion market cap South Korean traded consumer products company was under attack from an activist. The activist had acquired a substantial stake in the company and was demanding the company triple the dividend payout and elect 2 new directors. To complicate matters, more than 45 % of the company’s outstanding shares was in the hands of foreign shareholders. It was projected that the activist could win because these shares were likely to vote against management and with the activist.

Solution

Alliance Advisors mobilized a shareholder engagement strategy that was designed to maximize the “friendly” votes or South Korean based shareholders to side with management. In addition, proxy advisors and foreign based shareholders were part of the shareholder engagement process.

Results

All of managements proposals were approved by shareholders and all the activist proposals were defeated.

]]> Best Practices: Retail Investor Voter Engagement https://allianceadvisors.com/ko/best-practices-retail-investor-voter-engagement/ Mon, 28 Nov 2022 19:03:42 +0000 https://allianceadvisors.com/best-practices-retail-investor-voter-engagement/ As the number of retail investors is growing at record-breaking levels, growing numbers of issuers are needing retail shareholder votes to secure positive proxy outcomes. Historically, retail shareholders have not been active drivers behind the vote but as the percentage of shares they own grows, it could make the difference in management winning support for proposals or reaching a quorum.  To effectively reach these shareholders, it is important for a company to have a retail investor engagement strategy that spans the entire year, not just around the time of the proxy vote.

Retail investors are also playing a key role in the ESG conversation, as well as becoming a pawn in the activist game. A company should own its narrative and proactively share it with the retail community.

There are some simple ways companies can enhance the voting experience for retail investors, including making the voting materials more retail-friendly, embracing social media and engaging year-round. 

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