Proxy Season & US Bancorp CEO

Recently through an article written by Brad Allen, editor and publisher for RiskRewardNews, Mr. Allen goes into detail about the change of Investor Relations as the twenty first century continues, as well as upcoming complaints when proxy statement season begins and see what Richard Davis has to say about banking as an industry.

"Or fencing on a tightrope in the eye of the storm" is what Allen likes to call the pace of Investor Relations. He speaks of how as time progresses, traders are outnumbering investors, markets are unclear, and technology is on the rise, while regulation still has some catching up to do.

On a different note, Richard Davis speaks of the upcoming proxy season, where many shareholders will most likely be inquiring about executive compensations, who the executive officers are, what the board compensation is, and so on.

Davis, chairman of the Washington DC based Financial Services Roundtable as well as president and CEO of US Bancorp out of Minneapolis feels a sign of "activism" approaching from shareholders. Davis feels that the banking industry has failed the American people in many ways and knows that it is not only him who feels this way. Therefore, he knows that shareholders will be sure to fill out proxy statements come time.

It is clear to see that if good IR practices had been utilized, that maybe so many financial institutions as well as corporations wouldn't have failed, and we may have been able to avoid such a downfall in the economy, or at least taken a smaller hit. However, now company's must deal with the outside voice, the voice of the public, their consumers and clientele, which will have much to say in the upcoming month.

Investor Relations Makes a Difference

It is said, that some CEO's and CFO's do not believe in the true practice of investor relations, however they believe in that numbers speak for themselves. Some believe that if you only comply with the minimum requirements of disclosure, there is no point for Investor Relations, however I find that hard to believe. Within this article, Buy Side: "IR makes a difference", one can interpret that Investor Relations is a strong asset to any company and for future progress. Bradley Smith, under his IR/PR Product Blog, shows a video excerpt of Brian Rivel, the preseident of Rivel Research Group as he discusses the matter of how the "buy side" typically meets with management about three times before closing a deal. Rivel mentions that management must stay active and meet with individuals serval times a year, especially your top holders. I agree completely with Mr. Rivel, Investor Relations is a priceless asset and if utilized correctly, can only increase revenues, sales, and your public image as a company. The tactics used within IR, allow good marketing, communication, as well as a a great understanding for the securities laws one must comply with, while allowing for a good channel of two-way communication between the corporation and financial community.