We’re nearing the end of the season with respect to annual shareholders’ meetings, and taking a constructive look at what went right or wrong is always helpful in anticipation of next year.
Perhaps one of the most daunting aspects of annual shareholders’ meetings is when investors and management teams are mingling outside of the formal meeting session. How should management navigate small talk with investors?
Following are tips to keep in mind:
- Be mindful of selective disclosure. If you think you’ve disclosed previously undisclosed material information, consult your CEO, CFO, general counsel or IR representative.
- Proactively engaging in conversation with investors is OK, and actually encouraged.
- It’s fine to say, “I don’t know.”
- Talk in plain English. Keep it simple by avoiding company or industry jargon and acronyms.
- Respond to questions in a direct, concise manner. Try not to wander off on tangents.
- Do not make future projections.
- Remain courteous, even if an attendee isn’t. Of course, if a conversation escalates to an unreasonable level, engaging security or even law enforcement is always an option.
- Do not wander outside of your area of expertise. If you’re not sure about something, refer the question to the appropriate person.
- Collect business cards or contact information of every investor you spoke with, and pass along to your IR representative.
- Introduce investors to IR representatives if a follow-up is appropriate.
— Evan Pondel, firstname.lastname@example.org