Dean Little, CEO and proximity co -founder
In the recent Apple shareholders meeting, two proposals challenged the company’s position on diversity and its association with OpenAI. Neinder was expected to pass, but both were indicative of increasing tension; Shareholders’ communications are no longer just dividends and appointments of the Board, now forums for political, ethical and technological debates.
As companies face pressure from all areas of the investment landscape, including investors, regulators, activist groups, opaque and outdated communication practices will not meet their communication needs.
While the financial sector continues to modernize quickly, the way companies interact with shareholders remain trapped in the past. If the United Kingdom signs because to stay competitive in an increasingly politicized and digitized investment environment, the communications of the shareholders of modernization are no longer optional, it is essential. This is the reason why we have developed our set of products to help digitize investors’ communications, allowing emitters to commit directly to investors, reducing the dependence of intermediaries and optimizing the entire process.
Growing demand for communication of digital shareholders
Investor expectations have changed dramatically in recent years. Today’s investors, especially retail investors, expect perfect and real -time digital experiences. A recent study reveals that 75% of investors now prefer digital updates, while 60% expresses dissatisfaction with current communication methods that cite a lack of clarity and response capacity.
Despite the growing impulse for digitalization, 66% of FTSE 350 companies still have AGM in personnel, indicative or slow adoption.
Companies such as BP, Shell and National Grid have requested records of digital shareholders to ensure that the United Kingdom remains competitive in global markets. Meanwhile, throughout the Atlantic, the United States Securities and Securities Commission (SEC) previously introduced rules aimed at improving and standardizing the disseminations related to the climate under the Biden administration. However, these efforts have since fallen with the change in presidency, which reflects the broader reaction of ESG in the United States. Despite this, investors will continue to request transparent communications in real time on the climate risk of companies.
In the United States, financial institutions such as JP Morgan, Northern Trust and Banco Santander are adding pressure to modernize through the adoption of blockchain -based solutions to improve transparency and rationalize the vote by power. With the global regulatory panorama that moves rapidly, digitalization is becoming the new standard for shareholders’ participation, which drives markets to modernize.
Paper of digitalization in the modern participation of shareholders
Digital solutions offer significant advantages for the communication of shareholders, partly with the improvement of transparency and efficiency. Traditional communication methods create bottlenecks that not only increase inefficiencies but also increase costs, were the latest technologies, on the other hand, allow real -time updates, instant vote of representation and simplified governance processes. These tools foster transparency, reduce erroneous information and improve confidence between emitters and investors.
Digitization also empowers shareholders by offering a more inclusive and real -time approach to commitment. With investors who have several interests and priorities, it can often be difficult for companies to meet all their needs. However, digital solutions create average land where all investors, whether retail or institutional, can participate actively, efficiently and profitablely.
A fully digital shareholders frame allows the issuers to communicate directly with investors, reducing the dependence of intermediaries and cutting unnecessary delays.
Proximity, for example, leads the load in this space. Products such as Proxymity Connect vote allow investors to receive agm updates and cast votes instantly, increase participation by eliminating delays and helps issuers to meet evorative expectations while staying ahead of investors’ demands.
Preparing for the 2025 agm season with first digital governance
Shareholders’ activism continues to increase and companies need to adopt digital solutions as activist investors become more influential, demanding greater transparency and responsibility. In the United States, shareholders activism increased by 15% in early 2024 compared to the previous year. High profile activist campaigns have been addressed to the main corporations such as Disney, Apple and Blackrock, demanding actions on executive compensation, diversity of joints and environmental, social and government commitments (ESG).
Digital shareholders frames allow companies to address concerns proactively, providing a direct communication line to investors. This proactive approach helps companies avoid reactions in crisis mode and demonstrates their commitment to transparency and responsibility. Without digitalization, companies run the risk of being behind to attract and retain the investment of modern and digital investors. The increase in transfer vote in the United States, and increasingly in the United Kingdom and Europe, allows retail investors in mutual funds to vote directly on shareholders’ proposals, which further increases the demand for digital participation.
For companies that seek to attract and retain investment, the adoption of digital tools is no longer optional. Investors now expect a continuous commitment during the year, not only once a year annual general meetings. The Proxymity platform, which facilitates communication and vote in real time, ensures that products that are able to satisfy this access of demand round to governance updates and voting rights to maintain evolutionary markets. Financial institutions such as Citi, JP Morgan and State Street are investing in digital shareholders participation tools, such as the set of Proxymity products, which reinforce the urgency of global adoption.
The governance of the shareholders must follow their example in the digitalization of the markets. With the support of innovators who provide real -time communication, instant vote of representation and greater transparency for investors, the activities adopted by digital solutions today will boost the future of their shareholders’ participation, ensuring that they are competitive. The future of shareholders’ communication is digital, and the time for companies to act now.
