Public companies are required to file proxies with the Securities and Exchange Commission.
Application for proxy is submitted when the company is seeking shareholder votes and is submitted before the annual meeting.
The proxy statement, called form DEF 14A, highlights new board members, proposed executive salaries and compensation, and any other information a shareholder may need to vote on an issue.
Proxy reports provide shareholders with important information needed to assess the qualifications and remuneration of key members of the company’s management and board of directors.
A proxy statement is different from a proxy vote, where a shareholder agrees that another person can vote on behalf of the shareholder.