Preparing for an Unprecedented Proxy Season
The investor relations profession has come a long way since the movie character Laura Partridge stood up and challenged a public company chairman about his seemingly exorbitant salary nearly 70 years ago. But today the issues are even bigger and more controversial. Learn what’s ahead for the 2025 proxy season and some advice for handling it.
BY KIMBERLY ESTERKIN L
et’s set the stage. Picture this: almost 70 years ago, the shareholders of General Products Corporation (GPC) congregate at GPC head- quarters for the company’s 59th annual meeting.
The CEO, Treasurer, Secretary, and Chairman of the Board are there. Te meeting takes a surprising turn when Laura
Partridge, owner of stock certificate No. 18973635, takes the floor. Partridge inherited 10 shares of GPC from a neighbor who passed away many years ago, but this is her first annual meeting. She asks, “I don’t mean to be nosy, but is it true that the Chairman will get $175,000 next year? It seems like a lot of money.” Te Treasurer assures her that for a company of
this size this salary isn’t unreasonable, even though he only made $75,000 last year. Partridge continues, “Would I be awful if I asked another question? What does the Chairman of the Board actually do?” Te four management members exchange in-
credulous looks, taken aback by her bold inquiry. Together, they explain that the Chairman presides over the board at four meetings and the Annual General Meeting (AGM) each year, each lasting ap- proximately two hours. Partridge then astutely responds, “Well, five meet-
ings a year, that’s 10 hours in all. You mean he gets $175,000 for working just 10 hours?” Te Chairman, visibly irritated, replies by asking her if she thinks he is worth the money!
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