Proxy Statement: What is It and Why Is It Significant?

Have you ever encountered a document published by a publicly-held firm before its annual shareholders meeting and thought you did not know what it was all about? Well, a proxy statement provides information for the shareholders to understand the things they need to vote for without being present during the meeting. It could be used in filling up the gaps in the board, executive compensation, among others that require shareholders' approval. Proxy statements can aid investors in comprehending the issues that affect the firm before voting.