July 14, 2008

Broadridge’s “Near-Final” E-Proxy Stats for the Proxy Season

In our “E-Proxy” Practice Area, we have posted the latest e-proxy statistics from Broadridge. As of May 31st:

– 634 companies have used voluntary e-proxy so far (this pretty much is the head count for this proxy season)

– Size range of companies using e-proxy varies considerably; all shapes and sizes (eg. 32% had less than 10,000 shareholders)

– Bifurcation is being used more as the proxy season progresses (but still not all that much); of all shareholders for the companies using e-proxy, now over 10% received paper initially instead of the “notice only” (up from 5% a few months ago)

– 1.0% of shareholders requested paper after receiving a notice; this average is about double what the trend was a few months ago

– 57% of companies using e-proxy had routine matters on their meeting agenda; another 30% had non-routine matters proposed by management; and 12% had non-routine matters proposed by shareholders. None were contested elections.

– Retail vote goes down dramatically using e-proxy (based on 468 meeting results); number of retail accounts voting drops from 21.2% to 5.7% (over a 70% drop) and number of retail shares voting drops from 31.3% to 16.4% (a 48% drop)

By the way, the SEC Staff has posted this “E-Proxy Compliance Guide for Smaller Companies.” No new guidance is provided by the Staff – but it’s a clearly written starter piece if you are a blank slate on this topic.

E-Proxy’s First Season: Lessons Learned

We have posted the transcript for the popular webcast: “E-Proxy’s First Season: Lessons Learned.”

And Just to Prove Paper Isn’t Dead…

How to Handle Hedge Fund Activism

Catch this webcast tomorrow – “How to Handle Hedge Fund Activism” – featuring:

– Joele Frank, Founding Partner, Joele Frank Wilkinson Brimmer Katcher
– David Katz, Partner, Wachtell Lipton Rosen & Katz
– Christopher Young, Director of M&A Research, RiskMetrics Group
– Veronica Rendon, Partner, Arnold & Porter LLP

– Broc Romanek