Satisfy stockholders.Use annual reports to communicate with core investment constituencies Broadway Federal Bank (No. 12 on the BLACK ENTERPRISE BANKS list and a member of the BE Black Stock Index) has been in business more than 50 years, but because the company went public only four years ago, there is one area where its directors are relative novices: producing an annual report. The Securities Exchange Act of 1934 requires that all publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. make yearly financial disclosures to their shareholders. "It's a very important document if people read it and it gets wide distribution," says Paul C. Hudson, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Broadway Federal, which has five branches in the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange . "But I'm not convinced [ours] gets wide distribution and that people read it with the kind of [attention to] detail they should." For small African American-owned businesses with limited budgets, making the most of an annual report can be a challenge. Where annual reports used to be only printed and mailed, today's technology expands the ways in which they can be made available. Reports can be published on CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). and computer diskette The official name for the floppy disk. See floppy disk. diskette - floppy disk , for example. And with the advent of the Internet and the availability of stock market data online, the annual report can also go online and be more than the obligatory letter from the president and the required financial statements. It can be a way to showcase a company's personality. "It's an instrument that can work in a lot of different ways. It's the only piece they're able to give to analysts, partners, shareholders, potential employees and the press that gives a unified vision of their company," says Bill Cahan Bill Cahan studied architecture at Washington University, St. Louis, and University of California, Berkeley. He became an architect and practiced at Anshen & Allen architects for 5 years, during which time, in addition to designing buildings, he was responsible for the rebranding , president and creative director of Cahan and Associates, a design firm in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden that has won more than 750 awards for creating annual reports. Here's how to make your annual report work harder: * Write an engaging letter to shareholders. The letter, one of the most widely read parts of the report, should demonstrate leadership. In about 3,000 words, give a comprehensive review of performance and set realistic goals for the coming year. Write crisply and honestly. "A good indication of candor is how they communicate what didn't work out according to plan and what remains uncertain in a company's future," explains L.J. Rittenhouse, president of UtiliVentures Inc., a consulting firm in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. that specializes in CEO letters. * Create a compelling message. Like a good novel, the report must draw people in, urging them to open it and read it. "It needs to give people a reason to care about the company," says Cahan. That requires a consistent theme that incorporates the company's unique products or services. * Keep it simple and easy to read. Investment, employment and partnering decisions rest on the company's message being articulated through a unified package of words, color, texture, shape, size and pictures. * Present information clearly and concisely. The report must lay out the information, from management analysis to balance sheets, in an interesting, accessible manner. Avoid jargon and hyperbole. Use boldface type and color so that pertinent figures aren't lost among the many numbers the Securities and Exchange Commission requires. Illustrations can tie together the theme and the financial data. Hudson has goals for future reports: "I'd like other businesses to read it, I'd like employees to read it and I'd like customers to read it so that they can make a decision about investing in their community institution." For more information on annual reports, read: 10 Minute Guide to Annual Reports and Prospectuses by Eric P. Gelb IDG IDG International Data Group IDG Integrated Drive Generator IDG Installation Design Guide IDG Internet Discussion Group IDG Inset Dielectric Guide IDG International Dangerous Goods (mail, shipping) Books Worldwide, $10.95 Potlatch potlatch (pŏt`lăch'), ceremonial feast of the natives of the NW coast of North America, entailing the public distribution of property. Corp.'s American Design Century Series, Vol. 3, Annual Reports Available for free by calling 800-447-2]33 or visit www.potlatchpaper.com. |
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