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Companies Push Back on Executive Compensation Perceptions

Louis M. Thompson | December 4, 2012

As companies prepare their communication strategies for the 2013 proxy season, new concerns are cropping up that will have a significant influence on what companies communicate to shareholders.

Among those issues is a trend that is affecting nearly all public companies: Equities are falling out of favor with institutional investors, who are instead gravitating to bonds and passive funds, including the rapidly growing category of exchange traded funds.

According to a recent report by the Financial Times, pension fund allocation to equities fell from 61 percent to 41 percent from 1999 to 2011. Meanwhile, bond allocations rose from 30 percent to 37 percent over the same period.

This trend towards bonds and passively managed funds is perhaps the most significant factor in developing a communications strategy for the spring proxy season....

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