Chances are that you own stock in a corporation directly or through a retirement plan, but how much do you really know about what a corporation is, what it does, how it raises money and how it decides to pay dividends or buy back its own stock? Who really owns corporations, who has the power, and what kind of communication needs to take place to increase transparency?
Joining us are key experts on this issue:
- Brent Anderson – Vice President: Investor Relations Meritage Homes Corp, Former President: NIRI DFW Chapter 2011-12
- Francis Byrd – Senior Vice president of Corporate Governance and Risk Practice Leader, Laurel Hill Advisory Group, LLC
- Baruch Lev, PhD – Author: Winning Investors Over
- Philip Bardes – Professor of Accounting and Finance, New York University Stern School of Business
- And, host, Dennis McCuistion.
Numerous corporate scandals in the last several years have led to more lawsuits as companies fail to communicate as they should with their shareholders, deliberately withhold data or inflate returns. Companies have a public duty to disclose to their shareholders if they are going to miss their investment forecast, yet many corporate managers do not want to expose themselves by “predicting” what could happen in terms of investments- and be judged for what may not prove accurate. Too often this leads to soft information that means little to the company’s shareholders. Yet guidance is critically important as investors need information about the future.
Investor relations are a combination of information that includes finance, securities law, marketing and communications that tell the company story. Qualitative (the future is bright) information is wishful thinking. Yet for many reasons it’s challenging for a company to provide guidance- even though that is part of their duty.
Our panelists agree that today building trust is an absolute. Companies need to: be honest with investors; and provide them with accurate and needed information from accounting to the business model and strategy. Making sure compensation that is linked to performance is a critical factor in fostering transparency and has been a major factor in lost trust in the last several years.
Join us for more information on how to keep your shares safe and growing.
As always, we’re talking about things that matter… with people who care.
Niki Nicastro McCuistion, CSP
Executive Producer/ Producer
Management Analyst, Speaker, Consultant
02.03.2013 – 2015