Meeting Notes

Summary of the Program at the Cincinnati NIRI Chapter Meeting on June 14, 2012

NIRI NATIONAL CONFERENCE RECAP

The Cincinnati Tri-State Chapter of NIRI held its sixth and final meeting of the season on June 14, 2012. Chapter members shared highlights from NIRI’s national conference held earlier in June. Below are some of the highlights pertaining to selected general sessions of the conference. Contact Dennis McDaniel or Diane Weidner for more information.

  • CFO Panel (Microsoft, Costco, Starbucks)
    • Average CFO time spent on Investor Relations matters: responses ranged from 10% to 15%
    • CFO goals for Investor Relations Officer (IRO): crisp story/message, outreach to investors, help business leaders understand how they affect investors
    • Road show or conference participation per year: about 10, 4 to 5, 4 to 5
    • Key topics of recent investor interest: how to deploy abundant cash on balance sheet, capital management options, interest in dividend even if a growth company
    • Board of directors interest: company message, how shareholder base is changing, analyst commentary
    • What these CFO’s want from IRO: distill what investors care about, what peers are disclosing, sounding board for business issues
  • Global Investor Panel
    • Do investor conferences matter? They are useful, but face-to-face meetings are best
    • Do talk to hedge funds; what they are worried about could provide helpful insights
    • Worth marketing in Europe with current Euro problems? Yes, many Euro funds want to further diversify and they are engaged
    • For investor meetings, a key focus should be potential catalysts that could change performance patterns
    • Value of IRO: trusted representative of management, consistent & honest communication, highlight key areas for investors
    • Don’t shun a sell-side analyst with a negative view of the company – word gets around the street
  • Regulatory view from the SEC (recorded interview with SEC’s Meredith Cross with post-interview panel comments)
    • SEC is okay with message supplementing required data on pay comparison to Total Shareholder Return
    • Panel (including former SEC senior counsel) expects permission for sampling for median employee compensation); also expect new requirements not to be effective until 2014 reporting
    • Proxy Advisory firm criticism by companies: expect SEC interpretive release, but overall support of PA firms
    • Current 13F process gives SEC what they need for their oversight responseibilities, expect little change except short sale reporting