Advice on retail shareholders and allocating management's time.
Q. We’re concerned about the growing cost of servicing our thousands of retail shareholders, given their negligible holdings (below 5 percent). It makes better business sense in the long term for us to buy back as many shares as we can at a premium, but what factors should we consider before moving ahead with such an offering?A. The cost of servicing retail shareholders has now been estimated at $20 per shareholder annually – but there are several ways to reduce costs, such as the ‘sell
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Hulus Alpay
Hulus Alpay is senior vice president of New York-based IR and PR firm Makovsky & Company.
