Intelligence Report 2012 - The AGM and shareholder engagement

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Intelligence Report from 2012 on the AGM and shareholder engagement

Intelligence Report from 2012 on the AGM and shareholder engagement

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  • 1. Intelligence Report > The AGM and shareholder engagement November 2012certainty ingenuity advantage COMMERCIAL IN CONFIDENCE
  • 2. Introduction In December 2011 the Government requested that the Corporations and Markets Advisory Committee (CAMAC) undertake a review into the future of the Annual General Meeting (AGM). CAMAC subsequently released a discussion paper on 14 September 2012, outlining the four broad areas under consideration: 1. Shareholder engagement 2. Annual reports 3. Conducting the AGM 4. The future and format of the AGM Throughout September and October 2012 Computershare surveyed over 2,300 shareholders via its online portal, Investor Centre. This survey set out to understand the opinions of retail shareholders in relation to the AGM and also understand more about their communication preferences. About the survey respondents • 71% of respondents said that they were over the age of 51, 20% between 36 and 50, and 9% said that they were 35 or younger. • 93.5% of respondents said that they were a personal investor. 6.5% of respondents told us that they were not a personal investor, however of this group three quarters said that their shareholding formed part of their Self Managed Superannuation Fund (SMSF), followed by 7% who identified themselves as employee shareholders. • Aside from being referred to as ‘respondents’ in this report, survey participants are also titled ‘retail shareholders’ or ‘shareholders’.Computershare Investor Services Intelligence Report 1
  • 3. Being “a small shareholder with little influence” and “distance” are Shareholders who turn up to meetings indicate that the most common reasons for 78% of shareholders saying that they they do so to engage with never attend AGMs. the board: 57% say that the AGM Do you attend Annual General Meetings for the companies in which you own shares? allows them to assess a board’s capability in 2% governing a company. 20% 23% say that they attend to ask questions of directors I always attend the meetings in a public forum. I occasionally attend meetings “I like to hear what the 78% directors say about the Company’s plans going I never attend meetings forward.” “After the meeting I get most value if the senior officers of the company Despite 22% of shareholders in this survey saying that they always or occasionally attend make themselves available meetings, Computershare data shows that very few actually turn up. Average shareholder for one-to-one discussion.” attendance at meetings for 2012 to date is less than 0.2%*. * Based on Computershare clientsComputershare Investor Services Intelligence Report 2
  • 4. Shareholders are evenly divided about how much time they need to review AGM documentation. How much time do you need to review AGM documentation before voting? 22% 20% 78% of respondents want to receive their AGM < 5 days documentation via a digital channel, however 5-10 days Computershare data shows that less than a 21% 11-20 days quarter of shareholders 21% actually receive this information online. 21-28 days I don’t review these materials or vote 16%Computershare Investor Services Intelligence Report 3
  • 5. Nearly half the respondents who say they won’t vote this year cite their small holding not making a difference as the reason. 68% of shareholders say that they will vote this year. Historically these good What is your reason for not voting? intentions haven’t always 5% translated to an actual 11% I’m not interested vote, with under 7%* of 5% shareholders voting in 2011. No time or other more important commitments 25% My small holding would not make any difference “[My vote] would make no difference and generally I’m unsure of the voting process, it’s all too complex happy with Board of Management.” 5% I’m generally happy with the direction of the company, and have confidence in the decisions made by the board and management “I am generally happy with the direction of the 49% Other company and if I become unhappy I will sell out.”Computershare Investor Services Intelligence Report 4
  • 6. 38% of shareholders who are not planning to vote this year said that they would be more likely to vote if they could do so until sometime after the AGM, thereby allowing them more time to consider the meeting’s proceedings before casting their vote. In this situation would you be more likely to vote? Of the shareholders 38% planning to vote this year, 63% thought that allowing shareholders more time to 37% Yes vote after the AGM would be a positive change. No, I would still not vote Undecided 25%Computershare Investor Services Intelligence Report 5
  • 7. Retail shareholders are adept with technology and open to being engaged via digital channels. 66% of respondents say that they would participate in an online AGM if it was offered. 73% of shareholders said that they would prefer to ‘go paperless’ and vote A virtual Annual General Meeting allows you to attend, ask questions and vote at the meeting online. completely online. If companies held online Annual General Meetings, would you: 4% 10% 75% of respondents indicated that they Always attend and participate in online were interested in being meetings if they were available provided with voting 24% results following an AGM. Occasionally attend and participate in online meetings Continue to only attend meetings in person Nearly three quarters of 6% respondents said that they Continue to never attend meetings would like the results to be communicated to them Other (please specify) via a digital channel (email, digital mailbox or SMS). 56%Computershare Investor Services Intelligence Report 6
  • 8. Retail shareholders use a variety of online sources to keep up to date with news about companies in which they own shares. Where do retail shareholders most Aside from the annual report, how do you mostly source information about the company? frequently go to source information about the The companys website 11% 69% 20% company? 1% The companys Facebook page 95% 4% 1% 89% visit the company’s The companys Twitter feed 97% 2% website. 1% The companys blog/RSS feed 93% 6% 1% 82% visit free to access The companys Youtube channel 95% 4% news or industry Other news or industry commentator commentator sites. 18% 45% 37% websites, blogs (free to access content) Other news or industry commentator 50% 28% 22% websites, blogs (pay to access content) 50% pay to access content 0 20 40 60 80 100 from news or industry Not at all Occasionally Frequently commentator sites. While only a small proportion of respondents indicated that they check out a company’s Facebook, Twitter, YouTube channel or blog to find information, retail shareholders have strong connections with social media – 78% use webinars and internet audio/video (for example, Skype), 35% use Facebook and 20% use YouTube.Computershare Investor Services Intelligence Report 7
  • 9. ! For more information about the information contained in this Intelligence Report, please speak with your relationship manager or contact us here About Computershare Limited Computershare (ASX:CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialise in corporate trust, mortgage, bankruptcy, class action, utility and tax voucher administration, and a range of other diversified financial and governance services. Founded in 1978, Computershare is renowned for its expertise in high integrity data management, high volume transaction processing and reconciliations, payments and stakeholder engagement. Many of the world’s leading organisations use us to streamline and maximise the value of relationships with their investors, employees, creditors and customers. Computershare is represented in all major financial markets and has over 12,000 employees worldwide. ©2012 Computershare Investor Services Pty Limited. Computershare and the Computershare logo are registered trademarks of Computershare Limited. All other products and services named are trademarks of their respective owners.Computershare Investor Services Intelligence Report 8