While the overwhelming majority of companies that used the the Securities & Exchange Commission’s notice-and-access, or “e-proxy” rule, were happy with the results, the expected cost savings fell short for some. That’s according to the latest data on e-proxy usage during the 2008 proxy season reported by the National Investor Relations Institute and The Society for Corporate Secretaries and Governance Professionals.

Among 519 NIRI and SCSGP members responding to a joint survey, 44 percent implemented some form of the notice-and-access proxy distribution model. Among them, 95 percent said notice-and-access met its objective. However, only 70 percent reported cost savings.

Most companies (67 percent) said they saved roughly what they expected to save; however, 23 percent saved less than expected, and 9 percent saved more, NIRI and SCSGP reported.

Of the companies that used e-proxy, 15 percent used a full-set approach, sending a notice and a full set of paper proxy materials, while 42 percent adopted a notice-only model, and the same number used a bifurcated or hybrid approach—for example, sending a notice only to some shareholders, and a notice and a full set to certain others, such as beneficial owners or those holding a certain number of shares or some other criteria.

An interesting data point for companies considering using notice-and-access for the next proxy season: Eighty-three percent of the companies that used a bifurcated approach saved money, while 73 percent of those using a notice only saved money, and only 29 percent of those who used a full-set approach saved money.

While 83 percent of companies printed fewer annual meeting materials, NIRI and SCSGP noted that print savings weren’t that dramatic. Thirty-one percent of companies reported spending between 76 and 100 percent of their previous print budget this year; one-quarter of companies spent 100 percent or more; 23 percent spent between 50 and 74 percent of their previous print budget; 15 percent spent between 25 and 49 percent of their previous budget; and 7 percent spent less than 25 percent.

However, 80 percent of those surveyed reported that 5 percent or fewer of their shareholders requested print materials, suggesting some companies may want to reconsider their print runs next year. That’s also in line with e-proxy results released June 30 by Broadridge, which showed that among 653 companies it tracked that used e-proxy, only 1.05 percent of shareowners made requests for full sets.

Any print savings also may have been offset by an increase in the fees paid to third-party service providers: More than half of the companies surveyed (58 percent) saw their service provider costs increase.

The majority of those surveyed that used notice-and-access (68 percent) were small and mid-cap companies. Most had 10,000 or more shareholders; 39 percent had 10,000 to 99,999 shareholders; and 29 percent had more than 100,000 shareholders.

The vast majority—84 percent—say they met the 40-calendar day requirement for availability of online materials and notice mailing without a problem. Less than 10 percent of companies took advantage of the opportunity to send a second mailing after the 10 calendar day waiting period. Among those companies that did a second mailing, half said they did so out of concern for vote participation.

Meanwhile, 99 percent of respondents achieved a quorum. For 82 percent of companies polled, 76 percent or more of shares were voted. While 44 percent of survey participants saw a decline in retail voting, for 65 percent of those who did see a decline, that decline was 10 percentage points or less.

Shareholders seem largely indifferent to notice-and-access, according to NIRI and SCSGP. Nearly three-quarters of respondents reported no or neutral feedback from shareholders, while 13 percent reported somewhat negative feedback, 10 percent reported somewhat positive feedback, and 6 percent reported very positive feedback.

An executive alert with more detailed results is available for purchase.

Reminder: While large accelerated filers are already required to comply with the rule on shareholder choice regarding proxy materials, registered investment companies, persons other than issuers, and issuers that aren’t LAFs conducting proxy solicitations can opt to comply early, but must comply with the rule regarding proxy solicitations commencing on or after Jan. 1, 2009.

Source: The above Notice and Access chart was provided by the National Investor Relations Institute and the Society for Corporate Secretaries and Governance Professionals.