FYI: Corporate proxy statements can be very rich sources of information, the kind of information that could benefit investors — if they know what to look for.
Since 2002 — the era of Enron — the Sarbanes-Oxley laws have required much more disclosure in U.S. proxies, which are provided to shareholders so they can make informed decisions about matters that will be brought up at the annual meeting. While often regarded by casual observers as monotonous compilations of facts and figures, those willing to dig deeper can instead find excellent sources of information, including executive compensation and perks.
There are four areas where proxy statements can at least suggest, if not fully reveal, actions by management and boards of directors that may not be in the best interests of shareholders. These red flags can be found in companies of all sizes, from small-caps up to the largest of the large-caps.
Regards,
Ted
https://www.marketwatch.com/story/4-red-flags-to-watch-for-in-company-proxy-statements-2019-07-03/print
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