SEC-encouraged Key Performance Indicators

We have long been proponents of the benefits corporations can derive from thorough, detailed, transparent communications. Our knowledge of finance, and our years of obtaining input from the nation's most sophisticated investment professionals about the information they want, give us unique insights in developing detailed, forward-looking communications for our clients. We have seen the positive results this type of outreach generates for publicly held companies, from increased shareholder loyalty and satisfaction to improved ability to attract long-term qualitative investors.

The importance of this level of communication was underscored in 2008 when the blue-ribbon SEC Advisory Committee on Improved Financial Reporting delivered its recommendations and conclusions to the U.S. Securities and Exchange Commission. During its one-year tenure, the committee received comments from a wide range of investment professionals, accountants and accounting firms, financial industry leaders and corporate executives.

Among the recommendations was an extensive discussion of how corporations can improve their disclosure on company websites and in news releases and other public communications tools. The committee also discussed the importance of companies increasing their discussion of financial and non-financial factors that drive a company's performance and give investors greater insight. We have referred to these as “soft” metrics or key financial drivers. The committee coined the term “Key Performance Indicators.”

We're very excited about these developments, and are taking an active role in the committee's recommendation that the private sector contribute to heightened awareness of KPI's importance. We couldn't agree more. The SEC Advisory Committee's report is extensive. As a service to you, we've provided a link to the full document, and also links to specific sections related to our specialty, investor communications. Please feel free to review this seminal document, and contact us to discuss.

• The importance of Key Performance Indicators and the benefits to public corporations
• Enhanced discussion of financial & non-financial metrics in news releases & corporate communications
• Expanded use of corporate websites to report on key performance indicators
• Credentials of the SEC Advisory Committee members