SEC Corporate Governance

Review corporate governance practices and board composition from SEC filings for public companies using the Octagon MCP server.

Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See references/mcp-setup.md for installation instructions.

Workflow

1. Identify Analysis Parameters

Determine the following before querying:

• Ticker: Stock symbol (e.g., AAPL, MSFT, GOOGL)
• Focus Area (optional): Board, committees, policies, proposals
• Comparison (optional): Prior year, peers

2. Execute Query via Octagon MCP

Use the octagon-agent tool with a natural language prompt:

Review corporate governance practices and board composition from <TICKER>'s latest proxy statement.

MCP Call Format:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Review corporate governance practices and board composition from ORCL's latest proxy statement."
  }
}

3. Expected Output

The agent returns structured governance analysis including:

Proxy Statement Information:

• Filing date and annual meeting details
• CEO and key contacts

Key Governance Areas:

• Director election proposals
• Shareholder voting policies
• Governance disclosures

Data Sources: octagon-companies-agent, octagon-sec-agent, octagon-web-search-agent

4. Interpret Results

See references/interpreting-results.md for guidance on:

• Evaluating board quality
• Assessing governance practices
• Understanding shareholder rights
• Identifying governance concerns

Example Queries

Full Governance Review:

Review corporate governance practices and board composition from ORCL's latest proxy statement.

Board Composition:

Analyze board of directors composition, independence, and diversity for AAPL.

Committee Structure:

Extract audit, compensation, and nominating committee details from MSFT's proxy statement.

Director Qualifications:

What qualifications and experience do GOOGL's board nominees bring?

Governance Policies:

Review corporate governance guidelines and policies from JPM's latest proxy.

Shareholder Proposals:

What shareholder proposals are included in AMZN's latest proxy statement?

Board Composition Analysis

Independence Assessment

Director Demographics

Director Qualifications

Committee Structure

Audit Committee

Compensation Committee

Nominating/Governance Committee

Other Committees

Governance Policies

Key Policies

Shareholder Rights

Antitakeover Provisions

Leadership Structure

Chair/CEO Separation

Lead Director

Related Party Transactions

Key Disclosures

Red Flags

1. Material amounts - Large related party business
2. Recurring - Ongoing dependency
3. Below market - Off-market terms
4. Complexity - Difficult to understand
5. New relationships - Recently established

Director Elections

Voting Standards

Contested Elections

Governance Benchmarking

ISS/Glass Lewis Assessment

Peer Comparison

Compare across competitors:

• Board size and composition
• Committee structure
• Governance policies
• Shareholder rights

Governance Quality Indicators

Strong Governance

Weak Governance

Analysis Tips

1. Check independence definitions: Companies may define differently.

2. Track tenure: Long-serving directors may be less independent.

3. Review overboarding: Directors on too many boards.

4. Assess attendance: Low attendance signals disengagement.

5. Compare to peers: Industry context matters.

6. Monitor changes: Year-over-year governance evolution.

Use Cases

• Investment screening: Governance quality filter
• Proxy voting: Inform voting decisions
• Activist analysis: Identify targets
• Risk assessment: Governance-related risks
• ESG analysis: Governance pillar evaluation