Three Things - My report for three things I wish to share today!

?Three Things

Welcome to 2022!

Since I am now officially in the job market as a “free agent” – I will be perusing LinkedIn a bit more these days, as it will give me a platform to stay connected with my friends and prospects this year.

It is important to stay connected with your friends and colleagues, and in these times of remote working, its increasingly so. There is no ‘water cooler’ to congregate at and hear about what’s going on in the business world of your company.

Going back about 15 years or so ago, our team had a weekly meeting – where each person was invited to mention ‘three things’ that they did, experienced or heard about during the week. It was intended to build team rapport, celebrate small victories, and challenged the participant to have something to talk about at the week’s end. I found it valuable as I learned a lot of what was going on both within the company and outside during these sessions.

So, to stay connected, I will present my ‘three things’ which I will gear more towards providing some insight I have gained over the years of being in business and share them. Most of the topics will be governance, investor relations, shareholder services and the like. I figure that since people will not be lying awake at night thinking about me, I can take this opportunity to share thoughts which might prove helpful, and good things can happen from there!

Item 1 – Issuers should tap into the expertise resident both within their own shops and those of their service providers:

As we are in the first business day of the calendar year, corporations should be thinking about the governance and IR events that lie ahead and use all the tools in the shed to achieve success. Using shareholder meeting prep as an example, eliminating unforced errors, and managing known challenges is one key. The other is to anticipate unknown challenges and have a plan to respond. Your service providers can help you to make certain that all routine compliance matters get planned and executed. You can exert control over the proxy execution. For unknown challenges (i.e., unanticipated negative proxy advisory firm vote recommendation, activism, etc.) you must have a plan to respond. Involve your service provider ecosystem to help here. They have worked on similar situations to yours and can provide valuable insight. Also, your own team knows your company better than anyone else. NOW is a good time to fill out the forms provided by your transfer agent/proxy tabulator, and if appropriate – work with a solicitation firm to do a vote projection and see if that uncovers any surprises.

Encourage your service providers to share their experiences with you and help you uncover matters not readily apparent to you.

Item 2 – Topic Du Jour:??ESG and Activism

It seems like every fourth news story has some ESG or Shareholder Activism connotation associated with it. It would prove difficult to share a thought which would apply to every company the same way regarding these topics. But that said – for everyone – it would be important to see why these topics are trending and how it might impact your situation. ESG is here to stay. As I have written about before – institutional investors are increasingly factoring in ESG into their voting decisions and are more willing to vote against management if these firms feel the ESG program at the issuer is not adequate. Learn more about this and see how it impacts you going forward. It’s not going away.

As far as activism goes, this is something to keep an eye on for 2022. NIRI Twin Cities (of which I co-chair the Programs committee) is doing an event which can explain this in detail – link is below. Feel free to register! The new “Universal Proxy Ballot” is one of the new driving forces you need to learn more about!

https://www.niri-twincities.org/events/event-details/2022/How-the-SECs-New-Universal-Proxy-Rules-Will-Make-Companies-More-Vulnerable-to-Activist-Investors/default.aspx

3: Relationships Matter!

I have been so appreciative of my friends who have reached out to me in the past month to offer support and help. It has helped to boost my confidence and outlook towards a successful 2022!

But I was wondering how people felt about this going forward. The world has sure changed a lot, much of it for the better! But I would urge my younger friends to place a great deal of value in building up your professional and personal relationships. People want to collaborate with people who have a cheerful outlook and enthusiasm – and for those who want to do things the right way. I don’t believe that will change in the future either.

I have seen a lot of change in the way business development has been done over my career. When I was a kid, I just missed the “3 Martini Lunch” era. I was the kid who stayed in and answered the phone while the boss was out at Harrys at Hanover Square or Delmonico’s. Friday Night was the big night out with the office crew. Customers wanted to get to know you before they wanted to get down to business (Golf outings, dinners, etc.)??

Nowadays, it just seems so different. Technology has made an impact, and I have noticed with my son and his generation a substantial change. Kevin once told me “If I can’t view it on my phone, I ain’t looking at it!” (Isn't that an adorable picture of me and Kevin, who is now working in the Corporate Governance business?)

While I spent one year working at a FinTech company, I could see how that generation worked so efficiently, but differently than I did many years ago. I learned so much from that generation and have imported some of their outlook into my day-to-day work. Technology + Old School Relationships might prove to be a powerful combination! ??Lesson we can all use I suppose!

Have a great 2022 everyone! I hope to write again soon!

Pat