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A proxy statement is a document that public companies must provide their shareholders prior to a shareholder meeting. The Securities and Exchange Commission (SEC) requires companies to file their proxy statement in compliance with Schedule 14A. Companies file proxy statements on a Form DEF 14A.
Proxy statement examples may include the information about the directors' salaries, information about the bonus to the directors, additional the number of board of directors. The board forms the top layer of the hierarchy and focuses on ensuring that the company efficiently achieves its goals.
A proxy statement is a document filed by public-traded companies before annual or special shareholder meetings to give shareholders the necessary information to make informed votes on board business.
A proxy is an agent legally authorized to act on behalf of another party. The proxy may also allow an investor to vote without being physically present at the annual shareholder's meeting.
Proxy statements describe matters up for shareholder vote, and include management and executive compensation information if the shareholders are voting for the election of directors.
A proxy statement also details the compensation packages of a company's CEO, its chief financial officer and its three other highest paid executives. The compensation is broken down by salary, bonuses, stock options, pension benefits and more.
A market proxy is a broad representation of an overall market, such as the stock market. A market proxy can serve as the basis for an index fund or statistical studies. The S&P 500 index is the best-known market proxy for the U.S. stock market.