Concurrent Session: Communicating Capital Allocation: It's All About the Cash
Monday, June 5, 2017 | 3:15PM
- 4:15PM | Room: Palazzo Ballroom and Del Lago 1-2
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Track: Marketing and Communications
| Dan Boston | Dave Pahl | Brian Ruttenbur | Katie Royce, CFA |
U.S. companies have already amassed record cash and now Trump’s repatriation promise and lower corporate taxes will let loose a new ‘cash tsunami’. Rising interest rates, shareholder activism and exhortations from BlackRock and others have also ramped up the stakes around capital management. Yet research shows that most companies omit capital allocation from their investor deck and earnings call and investors are dissatisfied. In this session, we will examine how investors view the strategies behind buybacks, dividends, capex and debt, and how IR can best communicate capital discipline. We will also look at how IROs can contribute to capital allocation decisions by conveying investment community feedback.
Learning Objectives:
- Find out how investors judge capital allocation
- See examples of best and worst capital allocation communication.
- Explore how management links company strategy to capital management
- Learn about the macro forces and business trends that are shaping approaches to capital discipline
- Learn how to proactively announce a buyback as an opportunity, not a lack of one