Staff writer Russell Grantham contributed to this story.
At NCR’s annual meeting on Wednesday, the disembodied voice of CEO Bill Nuti welcomed shareholders to the virtual gathering. The Duluth technology company decided to hold its meeting online, he said, in part to encourage greater stockholder participation.
Though no stockholders asked questions about the company or its business at the virtual event, spokesman Kevin Ruane said attendance “exceeded turnout for the last several in-person meetings.” He would not say how many people logged in to the audio-only meeting, or why there was no video.
Previously, Ruane had said the virtual meeting “provides for greater connection to a larger group of shareholders, is a two-way communication forum, and eliminates travel barriers and costs for those who would like to attend.”
Virtual shareholder meetings are a trend, with 53 companies holding them only online last year, said Broc Romanek, who edits the blog TheCorporateCounsel.net.
Jim King, senior vice president of corporate affairs for The Scotts Miracle-Gro, said his company decided to do its meeting online this year. Stock is overwhelmingly held by institutional shareholders, he said, adding, “We were creating a lot of ceremony around a meeting no one other than the management team attended.”
Live video of the virtual meeting, King said, would have been people sitting around a conference table.
While some experts are in favor of online components that allow greater shareholder access, many also oppose online-only meetings. They say it can be easier to avoid controversies and harder for shareholders to interact with company leaders.
“In a public meeting, the dynamic is very different, ” said Timothy Smith, senior vice president of Walden Asset Management. “It should not be difficult for them one time a year to stand before their shareholders.”
