Covid Boosts “Virtual Inspections Of Elections” A Big Potential Money-Saver… Our Tips On Acting Smartly

In 2021 - thanks largely to sensible Covid-era precautions - U.S. companies overwhelmingly relied on “Virtual” attendance of Inspectors of Election - and auditor representatives too - at their shareholder meetings. Our sister-company, CT Hagberg LLC, logged fewer than two dozen in-person appearances out of the 560 meetings handled by Team members. In many cases this generated significant dollar-savings in IOE travel and lodging expense over the cost of in-person appearances. So far this year, the ratio of “virtual” vs. in-person appearances being scheduled seems to be running at the same high rate. 

Our Inspectors still love to attend shareholder meetings in person - but if the meeting is to be virtual only - or if few or no outside shareholders are expected - and nothing new or controversial is on the agenda - the savings in “virtual attendance” by the IOE can often be considerable. Here are a few tips on thinking this through:

• First, of course, is to estimate how many outside attendees are likely to show up, and likely to bring proxies or want to vote in person. If it’s more than a handful, you will likely want the IOE to be there in person too, to collect and take charge of the votes.
• Next, think about the meeting location - and the location of your Inspector: At many meetings, the IOE is only a short drive away - and sometimes, literally within walking distance to your meeting site. So no big deal for the IOE to come - and no big expenses at stake either way.
• Very important, we suggest, is to think for a second about your senior management team: At most meetings the Inspector of Election is the only outside person in the room that your management team actually knows by sight. And many meeting chairmen - and their senior staff too - really appreciate having that one ‘friendly face’ and ‘meeting-seasoned person’ in the room - and feel comforted to know, at an always tense time, that the IOE is a meeting-veteran who can smartly step up to the plate if something unexpected arises “from the floor.”
• As we have been noting, the advent of virtual and hybrid meetings has made the know-how - and the involvement of Inspectors in the planning and delivery phases more important than ever. So if you are new to the Shareholder Meeting game - and/or new to the VSM and Hybrid-Meeting game - be sure that your Inspector thoroughly knows the ropes and will be appropriately proactive - both in sharing info gleaned from other meetings AND in rising to the occasion quickly and expertly if unexpected circumstances should arise.
• If you decide to have the IOE attend virtually, as so many companies are planning to do this year, be sure to have a brief written script you can read in the event proxies or ballots ARE handed in at the meeting…to assure voters that you will transmit the forms to the IOE for validation and tabulation right away, for inclusion in the Final Report on the Voting.

Readers: Please take a few seconds to review the truly outstanding group of IOEs on our Team - at Inspectors-of-Election.com. Please note too that we are ready, willing and able to work with any reputable tabulator you may use.