CdM || Almost three out of four companies in Spain (74%) explain that the participation of retail investors in General Shareholder Meetings does not exceed 10%. Only 3% of companies state that the percentage of retail participation is above 50% of total investors. In most cases, companies do not offer incentives such as attendance bonuses to encourage participation from retail shareholders.
29% of companies indicate that participation in General Meetings has slightly increased thanks to online formats, while 31% believe it has remained stable and only 3% think it has worsened.
These are some of the main conclusions from the second edition of the study conducted by Evercom among directors and heads of Investor Relations at companies in the Ibex 35, Continuous Market, and BME Growth, aimed at analysing the present and future of relationships between listed companies and retail investors.
Furthermore, almost half of the listed companies (45%) believe that retail investors should have access to key events such as conference calls for results or Investors Day via streaming, even if these do not include an open question section for them. This access, although limited, is seen as a tool to encourage their informed participation.
Long-term orientation or towards dividends
66% of listed Spanish companies believe that retail investors have a long-term orientation or are focused on dividends. Specifically, four out of ten listed companies believe that investors primarily seek long-term profitability, compared to 26% who consider that retail investors focus on dividends, five points more than in the first edition of the study. Two out of ten companies see their retail investors as speculators and another 6% perceive them as irrational, guided by biases and emotions according to market behaviour, ten points less than in the previous study.
18% of listed companies in Spain have more than 25% of capital in the hands of retail investors, while in 40% of companies, this percentage does not exceed 10%. Additionally, seven out of ten listed companies believe that this shareholding structure will remain stable in the coming years, compared to 23% who expect an increase in the weight of minority investors within the companies. For six out of ten companies, including the presence of retail investors in the placement structure in corporate operations is a key factor for the market and the listed companies, ten points more than in the previous survey. On the other hand, listed companies believe that stock performance, dividend policy, and social criteria are, in this order, the issues that concern retail investors the most.
Communication with retail investors slightly improves
The Evercom study reveals that 43% of companies have a proactive communication strategy for retail investors, a percentage that has increased by 11 points compared to the previous study. Only 38% of companies adapt the messages and tone of their communications, considering the retail investor. In this regard, 26% of listed companies in Spain communicate with retail investors at least monthly. In contrast, 40% do not maintain periodic communication, except in exceptional situations or at the request of the investors themselves.
What information do listed companies share with their retail investors? 100% of companies share financial information, more than seven out of ten also include non-financial data, such as sustainability or governance strategies, and 20% of companies offer loyalty programmes and special promotions for their shareholders, four points more than in the previous study.
In terms of the type of information shared, more than 70% of companies communicate financial aspects. However, more and more companies are including ESG information in their communications, an area that is gaining relevance among retail investors. In contrast, almost seven out of ten companies (69%) have not detected an increase in retail investors' interest in non-financial issues, such as ESG (environmental, social, and governance) factors, as a result of the pandemic. Despite the growing relevance of these topics in the institutional realm, retail investors seem to maintain their focus on more traditional aspects, such as financial profitability and stock performance.
In terms of channels and formats, email remains the preferred method for 80% of companies to contact their retail investors. However, more than two-thirds also use specific presentations aimed at this group, and more than 30% employ visual resources such as videos and infographics to encourage greater interaction.