DEF 14A

Definition

DEF 14A is a document filed with the U.S. Securities and Exchange Commission (SEC) that provides information about a company's annual meeting of shareholders. It is a proxy statement that includes details on the matters to be voted on, the candidates for the board of directors, and other important information for shareholders to make informed decisions.

5 Must Know Facts For Your Next Test

1. The DEF 14A filing is required by the SEC for all publicly traded companies in the United States.
2. The DEF 14A must be filed at least 40 calendar days before the date of the shareholder meeting.
3. The DEF 14A provides shareholders with information about the candidates for the board of directors, including their backgrounds, qualifications, and any potential conflicts of interest.
4. Shareholders use the information in the DEF 14A to make informed decisions about how to vote on the matters presented at the shareholder meeting.
5. The DEF 14A also includes information about the company's executive compensation, including the salaries, bonuses, and other forms of compensation paid to the company's top executives.

Review Questions

• Explain the purpose of the DEF 14A filing and how it relates to companies in domestic and global markets.
  • The DEF 14A filing serves as a proxy statement that provides shareholders with important information about a public company's annual meeting, including the matters to be voted on and the candidates for the board of directors. This information is crucial for shareholders to make informed decisions about the company's leadership and direction, which is particularly relevant for companies operating in both domestic and global markets. The DEF 14A helps ensure transparency and accountability in the governance of these companies, which can impact their performance and competitiveness in both local and international markets.
• Describe the role of the DEF 14A in the context of shareholder rights and corporate governance.
  • The DEF 14A filing plays a critical role in upholding shareholder rights and promoting effective corporate governance. By providing shareholders with detailed information about the matters to be voted on at the annual meeting, the DEF 14A empowers them to exercise their right to vote and have a voice in the company's decision-making process. This is especially important for companies operating in domestic and global markets, where shareholders may have diverse interests and concerns. The DEF 14A also enhances transparency around the company's leadership, executive compensation, and other key governance issues, which can help strengthen investor confidence and the overall health of the company's operations in both local and international contexts.
• Analyze how the information disclosed in the DEF 14A can influence a company's competitiveness and performance in domestic and global markets.
  • The information disclosed in the DEF 14A can have a significant impact on a company's competitiveness and performance, both in domestic and global markets. The details about the board of directors, executive compensation, and other governance matters can shape investor perceptions and influence their decisions to invest in or divest from the company. This, in turn, can affect the company's access to capital, its ability to attract and retain top talent, and its overall reputation and standing in the industry. Furthermore, the transparency and accountability fostered by the DEF 14A filing can be particularly important for companies operating in international markets, where regulatory environments and shareholder expectations may vary. By demonstrating strong corporate governance practices through the DEF 14A, companies can enhance their credibility and appeal to a wider pool of investors and stakeholders, ultimately strengthening their competitive position in domestic and global arenas.

Related terms

Proxy Statement: A proxy statement is a document that a public company must provide to its shareholders before an annual or special meeting. It includes information about the matters to be voted on, the candidates for the board of directors, and other important details.

Proxy Voting:

Proxy voting is the process by which shareholders who are unable to attend a company's shareholder meeting can authorize someone else (a proxy) to vote on their behalf.

Shareholder Meeting: A shareholder meeting is an annual or special meeting of a public company's shareholders, where they vote on important matters such as the election of directors, approval of financial statements, and other corporate actions.