Companies want to encourage the loyalty of their small shareholders
"We are exploring ways to provide benefits to small holders faithful, these solutions exist, and we're working on." That was the message delivered by Pierre Bellon, the boss of Sodexo at the last general meeting of the group that denounced the attitude of speculators "that enter and leave."
How to build a strong relationship with individual shareholders? The question hangs over the board: whether to protect themselves from the vagaries of the Stock Exchange or the appetite of a rival, small holders, shareholders are stable and frequent strong allies. For loyalty, companies are using every weapon at their disposal. And to fly, nothing can replace the hard cash.
The payment each year of a generous dividend, indicating a continuous and healthy growth is certainly the most effective way to reward its shareholders.For the most faithful, "who hold their shares for more than two years, companies may pay a dividend plus a maximum of 10%," explains Eric Bleine, Director General of JRC Asset Management. "These same shareholders may also benefit from plans to award free shares also increased to a maximum of 10%.
Another lever: the right to vote can be doubled beyond a certain period of detention. Another technique that has proved itself: shares in registered form, directly into the records of the company make quick cash .
A variety of tools
For the latter, the advantage is huge. It clearly identifies its shareholders and can detect any movement in the capital, where a significant proportion of the shares are registered in the nominative, as is the case with Michelin, Lagard?re or Air Liquide.For the holder of action, the advantage is twofold: It is generally exempt from payment of custody and is constantly informed of the life of society. In the world of action "father", some titles are in a privileged position as Air Liquide and L'Oreal, darlings of small shareholders. "Among the 410 identified 000 individual shareholders, more than 150 000 were registered," says one from Air Liquide. Its main recipe: distribute generous dividends.
But the group uses almost the entire range of tools at its disposal with many levels of distribution of free shares, plus dividends and many buybacks. L'Oreal led until a different policy focusing mainly on the growth of its shares to pamper its shareholders.But now the group has decided to go further by also rewarding its loyal shareholders with a bonus dividend. The first will be paid in 2012 for profit in 2011.