Pacific Gold Corp fka PCFG

[WhiteSahara]

Getting social
While effective use of social media in the areas of investor relations and shareholder communications is still being explored, the SEC has stated that these tools can be used alongside other, more traditional methods of disclosing information. Companies like eBay use Twitter to disclose quarterly earnings; last year Johnson & Johnson tweeted minutes from its annual meeting.

Perhaps issuers adopting notice and access could use social media sites to announce their decision and alert shareholders to expect the notice. By using corporate website postings and social media, issuers can begin engaging shareholders way ahead of the annual meeting. Raising the shareholders’ awareness throughout the year may mean they will pay more attention when the proxy package or notice of annual meeting arrives.

And why do proxy mailings have to be so boring? It’s no wonder shareholders don’t pay much attention to the annual proxy package – it usually arrives looking like a piece of junk mail. Proxy mailings are expensive, so why not design them for maximum advantage by branding the cards and envelopes and inserting a letter from the chairman expressing the value of shareholder participation? Placing a message on the outer envelope emphasizing that the package is critical is another effective way to catch shareholders’ attention.

All issuers are required to make their documents available electronically. This can become a very valuable area for exposing the issuer’s message and branding to both registered and beneficial shareholders. Ensuring documents are more accessible and easier to search and navigate sends a message that you want the shareholder engaged. Some sites post video messages from the chairman and/or senior managers; others use video annual reports. It’s a proven fact that people remember what they see better than what they hear or read, so a video annual or other video message is a powerful forum for engaging shareholders.

Annual meetings are another way to keep investors engaged. Unfortunately, so much emphasis is placed on minimizing disruptions from activists that many meetings are not very welcoming to investors. Electronic shareholder meetings may be a good option – while there are concerns about whether this format is truly interactive and whether votes that are captured during the meeting can be validated, the technology will continue to evolve and many issuers will likely adopt at least a hybrid approach (a combination of some interactive components and a live meeting).

Shareholders can also be engaged via surveys, which can be completed online or on paper, with their results reported to the board. Last year one very innovative company enclosed a survey regarding say on pay in its proxy statement, providing a way for the shareholder to communicate directly with the company. If the shareholder wanted to have a dialogue with the company, he or she simply needed to check a box and provide the best way to contact him or her via telephone or email. Inviting shareholders into an open dialogue like this sends a strong message.

The bottom line is that issuers today have a wider range of tools for communicating with shareholders than they have ever had before. The more of these tools an issuer chooses to employ, the more engaged its shareholders will become.

http://www.corporatesecretary.com/articles/shareholder-communications/11216/engaging-shareholder-communications/