Case Study

Staying Ahead of Shareholder Feedback With Equilar’s AI Disclosure Analyst

Equilar Research Intelligence Copilot (ERIC)

The chief human resources officer (CHRO) and compensation committee at TechCo, a leading technology firm, known for its innovative products and global presence, was facing increasing pressure from its shareholders regarding its executive compensation practices. With a diverse shareholder base that included institutional investors, the Company requires a streamlined approach to gather, analyze and respond to shareholder feedback on its compensation policies in a timely manner.

Challenge

TechCo had long prided itself on its transparent compensation practices. However, as the Company’s executive compensation packages evolved and became more complex, involving various performance awards and other long-term incentive (LTI) vehicles, the Company found it increasingly difficult to effectively communicate the value and rationale behind these packages to its shareholders. Additionally, TechCo struggled to keep up with the volume of feedback from shareholders, many of whom expressed concerns over performance alignment. With this in mind, the CHRO turned to Equilar’s AI-powered disclosure analyst, ERIC (Equilar Research Intelligence Copilot), to address these concerns.

Solution

To begin the process, the CHRO would like to better understand the type of feedback TechCo’s peers are receiving from shareholders to get ahead of potential concerns from their own shareholders. The CHRO starts by entering “Summarize investor or shareholder feedback on each company's executive compensation programs,” into ERIC’s search bar. Within the tool, users can filter results by SEC filing type, desired peer group and other criteria. In this instance, the CHRO selects the proxy statements of TechCo’s disclosed peers. Within seconds, ERIC quickly processes and summarizes shareholder feedback for TechCo’s peers, identifying common themes and concerns related to executive compensation. This analysis helps the Company prioritize issues that may require immediate attention. ERIC also provides disclosure samples for each individual company in the peer group that address the CHRO’s prompt. ERIC cites its sources and references, ensuring TechCo has accurate and reliable information.

Results

Since implementing ERIC, TechCo has seen significant improvements in its ability to manage shareholder relations concerning executive compensation. The Company is now able to proactively address potential concerns before they escalate by incorporating feedback. By delivering timely, accurate and transparent responses to shareholder inquiries, TechCo has strengthened its relationship with its shareholders, leading to increased trust and confidence in its compensation practices. The CHRO and compensation committee have reduced the time and resources they previously spent on researching insights and analysis for their communication efforts by 50%. Following this experience, the CHRO at TechCo is positive ERIC will remain a critical component of his workflow.