How Institutional Investors Read Proxies

A recent survey by R.R. Donnelley contains some important insights for anyone involved in drawing up proxy statements, says Winston & Strawn partner Michael S. Melbinger. In this post from the firm’s executive compensation blog, he provides some highlights. Among them: Be aware of just how institutional investors typically read proxy statements, and construct yours with that in mind. Summaries and on-line readability and navigability are key. Note that pay-for-performance standards get a lot of attention, but complicated detail isn’t necessarily what’s required. Many investors said these disclosures are often hard to understand and sometimes seemed designed to obfuscate.