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President’s Note


What a difference a week makes! In one week we’ve gone from a feeling that we were at the edge of an economic cliff to a week when a 10% rally in the markets have brought about a much better, although uneasy, feeling among us. Washington also appeared to have a better message as Treasury Secretary Geithner and Federal Reserve Chair Bernanke seemed to calm the markets, banks hinted at a return to solid footing and the credit markets even showed signs of improvement. For NIRI members there was even more positive news.

NIRI has been advocating for a return of some type of circuit breaker (like the former uptick rule) for short selling, as well as for regulatory vigilance to address manipulative short selling. The pressure for such actions increased last week following comments by Congressman Barney Frank and both NYSE and NASDAQ indicating support for revisiting short sale circuit breaker mechanisms. The SEC has announced a meeting of the Commissioners on April 8, and although few details are available, I am very pleased with this action by the SEC.

On the negative news side, the SEC continues to be selective in looking at changes to the proxy system – Chairman Schapiro has instructed staff to draft a proposal for proxy access as part of a move by the SEC to give shareholders a greater say on corporate boards. NIRI firmly believes a review of the entire proxy system is needed with a focus on increasing ownership transparency and improving the ability of issuers to communicate directly with shareholders. Piecemeal changes to the proxy system are dangerous and may have unintended consequences.

To this end, NIRI has filed a comment letter (pdf) with the SEC on a proposed amendment to NYSE Rule 452, which would eliminate broker discretionary voting in director elections. The amendment proposes to make the election of directors a "non-routine" matter, meaning that brokers could not vote on such matters absent specific instructions from their clients. NIRI doesn’t support this change and believes a broader analysis and refinement of the entire proxy system is needed. If your company feels strongly about this proposal, I urge you to comment to the SEC using the Commission's online comment form; or via e-mail to rule-comments@sec.gov. In an effort to make this as easy as possible, NIRI has provided a draft comment letter for your use. Based upon the SEC’s focus on empowering shareholders, I will not be surprised to see this amendment pass. However, your voice is critical in letting the SEC know that they need to focus on a broader based solution to fix the existing proxy system.

I want to update you on a matter of NIRI focus last fall. As a result of our joint Notice & Access (e-proxy) survey with the Society of Corporate Secretaries & Governance Professionals, and an industry effort on improvements to the proxy system, I expect the Commission to make some necessary changes in the coming months. One area that was clearly in need of change following lessons learned from year one Notice & Access adopters was format of the “notice.” I am pleased to report that Broadridge has shared with me a revised notice (pdf) that, according to Broadridge, has been approved by SEC staff. Additional broader Notice & Access changes must be approved via a vote of the full Commission.

Finally, in case you don’t follow “The Icahn Report” blog, you might want to read the March 13 post by guest columnist James McRitchie titled, "Voting by Brand: Next Stage in Shareowner Empowerment" which supports improved communications between issuers and owners, and mentions the efforts of the Shareholder Communications Coalition, of which NIRI is a member.


Until next week,

Jeff Morgan, President & CEO
jmorgan@niri.org
Sponsored By:
PR Newswire


Headlines


Annual Conference Update
Just Announced - IR Emerging Issues and NIRI Advocacy Panel

Professional Development
Regulations 101 Seminar in New York – March 26 – Register Today!
Member Benefit Webinar – Career Development for IROs –
March 25 at 4 p.m. ET
Accounting & Finance for IR – Self-Directed

Member Services
NIRI Career Center - Exclusive member-only benefits
NIRI Survey Reveals Current Member Posture Towards Sustainability

Research
NIRI Research Requests

Industry Events
Upcoming Events

Chapter News
Upcoming Chapter Events

The Buzz
"FASB Bows: Fair Value to Get Overhaul"
"U.S. to Toughen Finance Rules"
"Cuomo, Frank Seek to Link Executive Pay, Performance"
"EBay Uses Twitter to Live Blog From Its Analyst Day"
"Thomson to Track Stock Lending"
"Changing Del. Law Would Aid Investors"
"Update: Dodd: Wall Street's 'Don't Ask, Don't Tell' Era Over"
"The State of Restatements: Sharply Falling"
"RiskMetrics' Words Gain Currency"
"SEC May Reconsider 'Uptick Rule'"
"SEC Examiners Step Up E-Mail Requests"
"Open Communication Can Help Restore Trust"
"Green Is the New Black"

Sponsored By:
Marketwire


Annual Conference Update


Just Announced - IR Emerging Issues and NIRI Advocacy Panel

NIRI Annual Conference
Beth Saunders Monday Morning Discussion

NIRI Emerging Issues Committee Co-Chair Beth Saunders and FedEx VP of IR Mickey Foster join the Monday IR Emerging Issues and NIRI Advocacy panel, a critical update on trends and regulations impacting tomorrow's investor relations		 Mickey
Register Now   |   Speakers   |   Sessions

Professional Development


Regulations 101 Seminar in New York – March 26 – Register Today!

Space is still available! Don’t miss this comprehensive overview of regulations and court decisions that impact financial disclosure, governance issues, and your role in investor relations. Bring a colleague to save $100.
Member Benefit Webinar – Career Development for IROs –
March 25 at 4 p.m. ET

Join us on Wednesday March 25 as Smooch Reynolds and Carol DiRaimo talk about what you need to know to stay relevant in today’s job market. Join the live dialogue and ask your questions, or view the archive later at your convenience.
Accounting & Finance for IR – Self-Directed

If you missed the 3-part series, it’s not too late to register. The archives will be available for 6 months, so register today and view the webinars at your convenience.
Sponsored By:
IRMag

Member Services


NIRI Career Center - Exclusive member-only benefits

Visit the NIRI Career Center and you’ll soon see why this page is one of the most frequently visited on the NIRI web site.

  • Post a resume – members can post up to three resumes for free
  • Search jobs – search nationwide listings or link to chapter job banks
  • Sample job descriptions – for entry, midlevel, and senior positions
  • NIRI Bookstore – Career development resources are outlined for members
  • IRO Compensation Survey – find the latest IRO compensation trends
  • NIRI Career Transition Program – members between jobs can have their membership dues suspended for up to one year; for more details click here.

    NIRI Survey Reveals Current Member Posture Towards Sustainability

    Multiple social and economic factors are converging to draw attention to the challenge and potential opportunity of corporate sustainability. While aware of the issue, most IROs consider it less pressing than the other major concerns facing the profession.



    Research


    NIRI Research Requests

    What makes your IR Web site successful?

    Share your advice for making your IR Web site as successful as possible. Do you have a sample RFP for IR Web Site services? Do you have advice for other members who are looking to build or move an IR Web site? What best practices do you follow for managing your Web site? How do you prevent hiccups or solve problems that may arise? Please send your ideas, documents, or comments to research@niri.org. We will share the results over the coming weeks.

    Coming Soon: NIRI's 5th Annual Guidance Practices and Preferences survey

    Back by popular demand! NIRI is in the process of updating its annual guidance survey and as always is looking for ways to improve our research on this important topic. Please send any questions or suggestions to research@niri.org and be on the lookout for the survey invitation in IR Weekly soon.

    Industry Events


    Upcoming Events

    Marketplaces and Exchanges: An Inside View of Off-exchange Trading and Dark Pools

    March 19, 2009
    8:30 a.m. – 12:45 p.m., NYC

    You are invited to learn more about off-exchange trading and dark pools in a behind-the-scenes look at Liquidnet, a global institutional trading venue.

    LINK: http://www.niri.org/conferences/2009/319DarkPools.html

    Chapter News


    Upcoming Chapter Events

    NIRI Connecticut Westchester – March 17, 2009
    “Traders vs. Investors - How do we win investors?” – Please join us for a discussion with Alan Rifkin, Managing Director at Merrill Lynch, as we take this opportunity to benefit from the insights of a top-rated analyst with over 20 years of top research experience—someone who has survived it all! Select the following link for more information regarding this dinner meeting.

    NIRI Houston – March 17, 2009
    "From Transparency to Execution: Converting a Positive Mindset into Effective Communications" - Please join the NIRI Houston chapter as we welcome John Lyon, Vice President and Director of Corporate Finance, of Perot Systems. This session will look at what the commitment to transparency means and how Investor Relations teams can convert this into processes that facilitates effective preparation for investor events. To register, select the following link (pdf).

    NIRI Boston – March 18, 2009
    Be sure not to miss the NIRI Boston Knowledge Development Series on March 18, 2009. With strategic targeting, the IRO can maximize management's time and the investment community's interest. In the first installment of the KDS, you will learn strategies for targeting both the buy- and sell-side including resources available to support targeting efforts. Our featured Speaker will be Patrick Flanigan, Director, Investor Relations, Genzyme Corporation. Participation is limited to IR practitioners. When: 4:15 p.m. – 5:15 p.m. Where: Genzyme corporate headquarters, 500 Kendall Street, Cambridge, MA.

    Immediately following, there will be a reception & networking event from 5:30-6:30 p.m. Then, starting at 6:30 there will be “Financial Industry Roundtable: Building Investor Relationships in Today's Changing Environment”. The current turmoil in the investment community is having a significant impact on public companies' communication efforts. We will hold a timely discussion among corporate and investment community veterans regarding the impact of today's evolving market on the buy-side, sell-side and trading dynamics, and how IROs and management can best sustain credibility and build investor relationships. Both events are at the Genzyme headquarters. Contact Beth Kurth at niriboston@comcast.net for more information and registration forms.

    NIRI New York – March 19, 2009
    Deutsche Bank in partnership with NIRI-NY would like to invite you to participate in a conference call/webcast. Unsponsored ADRs: How the changes to the SEC Rule 12g3-2(b) Exemption affect the American Depositary Receipts (ADR) market. For more information regarding registration, click here (pdf).

    NIRI Richmond – March 19, 2009
    Please join the NIRI Richmond Chapter for our March luncheon. Our luncheon will be held at Media General on Thursday, March 19th. Conor Larkin and Pat Doyle from Thomson Reuters will discuss "Investor Relations Best Practices." Please see the attached invitation (pdf) for more details and RSVP information. Please note: for security purposes, you must pre-register for this event!

    NIRI Atlanta – March 20, 2009
    Please join NIRI Atlanta at Maggiano's in Buckhead. Time: 7:30 am on March 20th. Topic: Dealing with the issues IROs face every day - An Interactive Discussion/Q&A with your Atlanta investor relations peers. To register select the following link

    NIRI Austin-San Antonio – March 26, 2009
    “Learning High Impact Communications Skills from Jim Peal, PhD” - Gain practical tips from a master communicator who has trained thousands of executives & corporate teams worldwide. Jim Peal has trained thousands of executives and empowered hundreds of corporate teams worldwide. A dynamic, world-renowned speaker with a stellar international reputation, Jim leads executives and their teams to greater performance in a fun, inspiring way. For further information on this program, select the following link.

    NIRI Arizona – March 27, 2009
    “Social Media & IR: What to Look Out For” - Social media, new media, emerging media… whatever you want to call it, the times are changing. NIRI Arizona’s March lunch program with emphasize best practices for integrating social media into your communications. We will use case studies and an open discussion to discover how you feel social media can help, or already has helped, your organization. Our featured speaker is Malcolm Atherton is based in Business Wire’s full-service Scottsdale newsroom and works with clients throughout the Southwest. For more information and to register select the following link (pdf).

    NIRI Dallas*Ft. Worth – March 27, 2009
    The D*FW Chapter invites you to attend our monthly luncheon, featuring Nicholas Even and Bruce Newsome with Haynes & Boone, who will address selective disclosure and the current issues impacting Investor Relations today. Nicholas and Bruce will share their expertise and insights on how to best be prepared for the various obstacles and opportunities that may come your way. Staying apprised of the current issues facing Investor Relations is a constant challenge as we navigate through this volatile time.
    Please join us Friday, March 27 at the Park City Club, 5956 Sherry Lane, 17th Floor. Networking begins at 11:30, with program starting at Noon. To register, click here.

    NIRI Silicon Valley – Spring Seminar – March 27, 2009 (pdf)
    NIRI Silicon Valley invites you to attend its award-winning Annual Spring Seminar on Friday, March 27, 2009. Guest speaker is on-air editor and author Charles Gasparino of CNBC. Seminar topics presented by top professionals in their field include the popular CFO Panel, The Economy and Impact to IR, Hot Topics in Corporate Governance and the SEC, Corporate Social Responsibility, Investor Targeting and Surveillance, Best Practices & Lessons Learned in Investor Relations. Plus, networking luncheon, cocktail reception and sponsor exhibit and showcase. Register at http://www.nirisv.org/events/moreinfo.asp?event=101. Early bird registration: $150 members/$175 non-members; Door price: $200 members/$225 non-members. For more information, select the following link (pdf).

    NIRI Triangle – March 27, 2009
    “Company Valuations – Where Do You Stand Today” - What is Your Company Really Worth? Guest Speaker - Michael Jacobs, CEO Jacobs Capital, LLC & Professor, Kenan-Flagler Graduate School of Business, UNC. Today, Corporate Valuation seems to be a moving target. Some of the questions you can expect Mr. Jacobs to address for IROs are: The importance of technical valuation metrics during downturns. How the relative weighting of various valuation techniques has changed. The current importance of macro economic trends vs. company specific trends. How important is the relative performance of a company vs. the "nominal" performance. What do we expect going forward? For further information and to register, select the following link.

    NIRI Charlotte – March 30, 2009
    Join fellow Investor Relations professionals for a networking event while we watch the Charlotte Checkers take on the Mississippi Sea Wolves on March 30th. Get re-acquainted with your peers while enjoying the game from the Lowe's Luxury Box with complimentary drinks and food. RSVP to Roy Granato at rgranato@curran-connors.com ASAP.

    NIRI Cleveland/Northern Ohio – April 1, 2009
    “The Ascendency of independent research” - NIRI Cleveland/Northern Ohio is hosting this luncheon in conjunction with the CFA Society of Cleveland. The presentation lead by, Harold S. Bradley, CIO at Ewing Marion Kauffman Foundation, will touch on the dramatically altered landscape of public company research coverage and implications for public company IRO’s and investors. Location: Sammy’s Metropolitan Ballroom: 21st Floor of the Huntington Building E. 9th & Euclid. Time: 11:45 am.

    NIRI New York – April 1, 2009 (pdf)
    The Board of NIRI’s New York Chapter invites you to attend and network with your peers. When times get tough – we all need to stick together! This is an informal and fun event, and we are hopeful you will register and join us for a fun night out. Register Now and “Bend an Elbow” with NIRI NY at our First New York City Social and Networking Event at Stout NYC on April 1, 2009. Location – Stout NYC – 133 West 33rd between 6th and 7th Aves. Phone: (212) 629-6191. Time – 5:30 PM till 8:30 PM.

    The Buzz


    FASB Bows: Fair Value to Get Overhaul
    American Banker (03/17/09) Sloan, Steven; Hopkins, Cheyenne

    On March 16, the Financial Accounting Standards Board moved to relax rules that have caused massive writedowns. The changes are intended to reduce the scale of other-than-temporary impairment charges and allow institutions to comply with mark-to-market accounting rules for illiquid assets. Under the new proposals, if a company wanted to hold assets until maturation or the prices recovered, a charge would only be recognized if an expected credit loss occurred, and the charge would amount only to the credit loss. The proposal should allow investors to decide themselves if the market declines are related to credit, or only temporary. The change would only require banks to record a loss on the credit impairment, but some worry that the remaining charge would deplete capital by still counting against other comprehensive income. In response to this concern, industry representatives said only the credit loss should count.
    Web Link - May Require Paid Subscription | Return to Headlines


    U.S. to Toughen Finance Rules
    Wall Street Journal (03/16/09) Paletta, Damian

    The Obama administration's plan to overhaul financial-market oversight includes more stringent capital standards for large banks and the authority for regulators to assume control of major failing institutions. Issues needing clarification include whether the administration will empower state attorneys general to prosecute national banks, and whether restrictions on compensation of bank executives will be called for. It is probable that the Federal Reserve's new authority will include some kind of oversight on very big hedge funds, while another element of the plan would retool how government monitors the payment and settlement system. The Fed could be requested to seek more transparency of the system, while proposed revisions could establish a central entity to process and monitor trades in derivatives. The Obama administration's plan will probably feature ways to reduce the likelihood that capital requirements will drift lower during strong years for banks. Banks might be required to reserve more capital in strong years so that those reserves can be safely tapped if the economy slumps. The plan is expected to ask Congress to authorize regulators to take over a financial firm whose failure could endanger capital markets.
    Web Link - May Require Paid Subscription | Return to Headlines


    Cuomo, Frank Seek to Link Executive Pay, Performance
    Wall Street Journal (03/13/09) Craig, Susanne

    New York Attorney General Andrew Cuomo and House Financial Services Committee Chairman Barney Frank (D-Mass.) are seeking to enact tougher executive pay regulations in light of the recent federal bailouts on Wall Street. Cuomo is examining the more than $3.6 billion in bonuses that Merrill Lynch paid out to top executives shortly before the firm was acquired by Bank of America Corp. at the end of 2008. Cuomo is also looking into ways of tying executive pay to long-term growth.
    Web Link - May Require Paid Subscription | Return to Headlines


    EBay Uses Twitter to Live Blog From Its Analyst Day
    PRWeek (03/12/09) Garcia, Tonya

    EBay says its use of Twitter to live blog its March 11 analyst day was a success. Chief eBay blogger Richard Brewer-Hay posted more than 140 Tweets throughout the day for an audience that included analyst firms, PR agencies, IR bloggers, and other members of the media. EBay started using its blog, eBay Ink, to cover quarterly earnings results four quarters ago, and Twitter for earnings three quarters ago. On March 6, eBay announced its new social media guidelines for reporting material information. Brewer-Hay says EBay had 700 followers heading into the weekend, but the number rose to more than 960 by the morning of March 12. "We ... have media, analysts, [etc] that cover us, [and] we had to start engaging in ... dialogue that's been happening without us," says Jose Mallabo, director of corporate communications for eBay. The National Investor Relations Institute (NIRI) has been an advocate of integrating new media into the IR process, but NIRI President and CEO Jeff Morgan says Twitter raises new issues due to its 140-word count. "Trying to get your message out and not creating confusion is really a challenge," says Morgan.
    Web Link - May Require Paid Subscription | Return to Headlines


    Thomson to Track Stock Lending
    IR Magazine (03/09) Human, Tim

    Thomson Reuters is offering a new service for tracking stock lending. Using data provided by Data Explorers, Thomson Reuters will email IR departments when lending in their shares reaches a level set by the client. Companies can also use the information in the alerts to compare themselves with their peers, and to determine which institutions are involved in the lending. "It helps you understand the forces battering your share price," says Linda Jackson, managing director of corporate services at Thomson Reuters.


    Changing Del. Law Would Aid Investors
    Delaware Online (03/11/09) Milford, Maureen

    Investors in Delaware corporations may get additional power in the corporate governance realm if the Delaware State Bar Association’s proposed amendments to the state’s corporate law are approved. The amendments, which will soon be introduced to the General Assembly, could change the perception of the state as being pro-management. They include proposals to allow a company to adopt bylaws to include shareholder-nominated director candidates in proxy materials, to reimburse proxy solicitation expenses incurred by shareholders, and to give Chancery Court the power to remove a director who has been convicted of a felony or been found by a court to have breached the fiduciary duty of loyalty. Recommendations from the bar have been heeded by lawmakers for close to 100 years, experts say, so the proposals have a good chance of passing. “I think it shows that Delaware is responding to the new environment that we all find ourselves in over the last year or two,” said William Clark Jr., a lawyer with Philadelphia’s Drinker Biddle & Reath who wrote North Dakota’s shareholder-friendly corporations act.


    Update: Dodd: Wall Street's 'Don't Ask, Don't Tell' Era Over
    Dow Jones Newswires (03/10/09) Holzer, Jessica

    Senate Banking Committee Chairman Christopher Dodd (D-Conn.) vowed March 10 to create a new way of regulating Wall Street, installing a set of tough investor protections and dramatically boosting regulators' scrutiny of securities markets and firms. "We are going to send a clear message with these modernization efforts: the era of 'Don't Ask, Don't Tell' on Wall Street is over," Dodd said at a hearing to gather ideas on improving oversight of the financial system. Congress is poised to tackle an overhaul of financial regulation this year in the wake of the massive government rescue of the financial industry and revelations of alleged huge investment frauds that went undetected by the Securities and Exchange Commission.


    The State of Restatements: Sharply Falling
    CFO (03/09) Taub, Stephen

    While the Sarbanes-Oxley Act led to an increase in corporate restatements for six years after it was passed, a new study from Audit Analytics finds that restatements declined this year for the second year in a row. There were 869 restatements last year, down from 1,235 in 2007, a drop of 29.6 percent and the lowest level since 2003, just before Sarbanes-Oxley went into effect. There was very little change in the severity of revisions, with about one third of restatements having no effect on income statements and the average negative adjustment down from $22.5 million in 2006 to $6.1 million in 2008. The issues that cause restatements persist, however, and last year the top issues were the same as in the seven previous years—debt, quasi-debt, warrants and equity issues, expense recording issues, cash flow statement, deferred and executive compensation issues, acquisitions or reorganization accounting issues, revenue recognition, tax expense and benefits issues, and liabilities, payables, and accrual estimate failures. Cash flow classification has increased in importance over the years, ranking third in 2008. There is also concern about stealth restatements, because they increased to about 51 percent last year after declining in 2006 and 2007.


    RiskMetrics' Words Gain Currency
    Wall Street Journal (03/10/09) Dvorak, Phred

    Shareholders in the proxy advisor RiskMetrics Group should expect the firm's stock to rise as institutional investors seek out advice in the face of new proposals to limit executive compensation. Because Congress is already requiring the 400 or so public- and private-sector recipients of federal bailout money to fully disclose executive pay practices to shareholders, experts believe the requirements will soon extend to all public firms. The majority of investors who have no experience analyzing executive compensation will likely enlist RiskMetrics' counsel about how to vote at annual shareholders meetings. The firm also operates a consultancy for companies looking to improve their risk management and governance practices. Some have criticized RiskMetrics' business model because of the possible conflict of interest that comes from advising individual firms and their investors.
    Web Link - May Require Paid Subscription | Return to Headlines


    SEC May Reconsider 'Uptick Rule'
    Wall Street Journal (03/10/09) Scannell, Kara

    A Securities and Exchange Commission (SEC) spokesperson confirmed that the commission will consider reinstating the uptick rule at a public hearing in April. The rule was suspended in 2007 after many economic studies indicated that it did not affect market volatility, but many critics say the rule’s absence has caused many of the spectacular stock declines seen since the financial crisis began. Many analysts say that reinstating the rule would boost investor confidence, and both SEC Chairman Mary Schapiro and Fed Chairman Ben Bernanke have said they would support it. The rule would likely be modernized, and the SEC is expected to ask for public comment on methods to make it more effective, such as adding a “circuit breaker” that would be triggered if a stock fell by a certain amount.
    Web Link - May Require Paid Subscription | Return to Headlines


    SEC Examiners Step Up E-Mail Requests
    Ignites (03/03/09) Ortiz, Peter

    Examiners for the Securities and Exchange Commission (SEC) may be making broader requests for documents and focusing on employee email, sources say. The SEC's Office of Compliance Inspections and Examinations (OCIE) will not tolerate late responses to information requests, says Lori Richards, the office's director. Experts say that a wider range of requests may hinder internal compliance review processes and make it a greater challenge for firms to comply with requests. Shannon Behara, senior principal consultant with ACA Compliance Group, says that companies can maintain an ongoing privilege log in anticipation of broader SEC requests, allowing them to provide email sooner. The SEC may have a broader focus on liquidity issues and shareholder purchase and redemption transactions, says Gene Gohlke, OCIE associate director.


    Open Communication Can Help Restore Trust
    Bank Director (Quarter 1, 2009) Vol. 19, No. 1, P. 12

    Corporate directors who open the lines of communication between themselves and investors are better at maintaining shareholder confidence, especially in times of financial crisis, finds a new report by senior fellow Stephen Davis of the Yale School of Management's Millstein Center for Corporate Governance and Performance and Deloitte & Touche LLP senior manager Stephen Alogna. According to the report, titled "Talking Governance: Board Shareowner Communications on Executive Compensation," two-way dialogue between boards and investors--rare in the United States--can strengthen the board's authority and assuage anxious investors. The report also reveals that the Securities and Exchange Commission's (SEC's) Regulation Fair Disclosure (Reg FD) rule does not hinder a board's ability to be transparent about executive pay policies; the SEC can help businesses save on legal fees and reduce the risk of litigation under Reg FD by creating an enterprise-wide, safe platform for shareholder/investor dialogue; and corporate executives and investors should determine the actual advantages of board/shareowner transparency and how these benefits outweigh any risks and costs.


    Green Is the New Black
    IndustryWeek (03/09) Blanchard, David

    Environmentally aware manufacturers may be the best risk for investors, according to a recent report from RiskMetrics Group sponsored by the Ceres investor coalition. A trend toward environmentally friendly production processes leads to such risks as higher energy costs due to stricter greenhouse gas (GHG) emissions standards, according to the study. Opportunities related to this trend include rising global demand for more energy efficient products, the report said. However, just 17 percent of the companies surveyed said their boards get climate-specific updates from management, the report revealed. Only 11 percent of the CEOs have taken leadership roles on climate change initiatives, and none have linked C-suite executive compensation to climate-related performance. "With or without a recession, climate change is a core business issue that all consumer and tech companies should be focused on," said Ceres President Mindy Lubber. The report examined large manufacturers and other firms' ability to reduce GHG emissions, launch energy efficiency projects, expand renewable energy purchases, and integrate climate factors into product designs. The highest ranking manufacturers were mostly in the high-tech sector, and included IBM, Dell, Intel, Johnson & Johnson, and Nike. High-tech companies were noted for their product and service innovation in the areas of operations, data centers, and product lines. For instance, IBM's energy conservation programs enabled it to save nearly $20 million in 2007.


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    • March 17, 2009


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    IR Weekly is an executive summary of upcoming NIRI professional development programs, timely member services information and noteworthy articles pertaining to investor relations and public company disclosure current issues and best practices distributed every Tuesday. Our editorial staff monitors nearly 11,000 newspapers, business publications, Web sites, national and international wire services, and other periodicals and summarizes significant articles into an easy-to-read executive summary.
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