Have we lost interest in the annual shareholders meeting?

The look, feel and substance of the annual shareholders meeting has changed significantly over time.  Once extravagant affairs with hundreds in attendance, lured by the prospect of hearing management deliver a major announcement or discuss a new course of direction, they are now, with the odd exception, far more perfunctory events borne of legal necessity.

However, the annual meeting remains one of the single most important opportunities for public companies to address their shareholders. While the anticipation of a major announcement has waned in our world of continuous disclosure, today’s investors look to management to provide their strategic insight into the company’s long-term vision and growth plans at the annual meeting – more so than to discuss the previous year’s challenges and successes.  

Competition for investment dollars remains very competitive.  Companies need to communicate what sets them apart from their comparables and effectively articulate how key achievements, the company’s investment proposition and growth strategy combine to build shareholder value.  The management presentation given at a company’s annual meeting is a key opportunity for communicating this message to the most engaged shareholders.

The annual meeting may never return to its glory days of yesteryear.  But perhaps the ability to have live online voting and being able to pose questions online during live meetings will give annual meetings a much needed shot in the arm and bring back the retail investor.  For more on this subject, I encourage you to read “More U.S. companies choosing virtual annual meetings” posted by Dominic Jones.