DEF 14A: Houlihan Lokey Sets Date for 2024 Annual Stockholders Meeting, Outlines Key Proposals

Houlihan Lokey will hold its 2024 Annual Meeting of Stockholders on September 18, 2024, to vote on director elections, executive compensation, and auditor ratification.

Summary

• Houlihan Lokey will hold its 2024 Annual Meeting of Stockholders on September 18, 2024, at its Los Angeles headquarters.
• Stockholders will vote on four key proposals: electing four Class III directors, approving executive compensation on an advisory basis, determining the frequency of future advisory votes on executive compensation, and ratifying the appointment of KPMG LLP as the independent auditor for the fiscal year ending March 31, 2025.
• The board of directors recommends voting FOR the director nominees, FOR proposals 2 and 4, and for the option of 'EVERY YEAR' for the frequency of future advisory votes on executive compensation.
• The record date for determining stockholders eligible to vote is July 25, 2024.
• The company's proxy materials, including the proxy statement and 2024 Annual Report on Form 10-K, are available online at www.proxyvote.com.
• Houlihan Lokey is a global investment bank with expertise in M&A, capital markets, financial restructuring, and financial and valuation advisory.
• As of the record date, there were 53,118,319 shares of Class A common stock and 16,391,973 shares of Class B common stock entitled to vote.
• The HL Voting Trust controls a majority of the voting power of the company's outstanding common stock.
• The company achieved the second highest revenue in its history at $1.91 billion.
• The company increased its quarterly dividend to $0.57 per share at the beginning of fiscal year 2025.
• The company hired 27 new Managing Directors and made 16 internal promotions to Managing Director.
• The company completed the strategic acquisitions of 7 Mile Advisors and Triago.
• The company published its 2024 Sustainability Report.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with strong financial performance and strategic growth initiatives. The board's recommendations and high stockholder approval of executive compensation suggest confidence in the company's direction.

Positives

• The company achieved the second highest revenue in its history of $1.91 billion.
• The company increased its quarterly dividend to $0.57 per share.
• The company hired 27 new Managing Directors and made 16 internal promotions to Managing Director.
• The company completed the strategic acquisitions of 7 Mile Advisors and Triago.
• The company published its 2024 Sustainability Report.
• Approximately 96% of votes cast were voted in favor of the say-on-pay proposal at the 2023 annual meeting.

Future Outlook

The company plans to continue stockholder and stakeholder outreach and strive to understand priorities from all perspectives, encompassing both traditional and new topics based on stockholders' priorities.

Industry Context

Houlihan Lokey is positioned as the No. 1 investment bank for all global M&A transactions, the No. 1 M&A advisor for the past nine consecutive years in the U.S., the No. 1 global restructuring advisor for the past ten consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards beyond stating Houlihan Lokey's leading position in various advisory roles based on transaction volume according to LSEG data.
• Comparable companies in the investment banking and financial advisory space include firms like Lazard, Evercore, PJT Partners, and Rothschild & Co.
• These firms are often benchmarked against each other based on metrics like revenue, deal volume, and advisory fees.
• However, without specific data on these competitors, a detailed comparison is not possible based on the provided document.

Management Changes

Related Party Transactions

• Since April 1, 2023, the company paid $251,267 to Antica Terra Winery, which is approximately 14% indirectly owned by Mr. Adelson, for wine and related services for wine tasting events.
• The Audit Committee has reviewed the transactions, along with other information it deemed relevant, and has ratified such transactions.

Stakeholder Impact

• The proposals to be voted on at the Annual Meeting will impact shareholders through decisions on director elections, executive compensation, and auditor ratification.
• The company's performance and strategic initiatives affect employees, clients, and other stakeholders.
• The company's ESG initiatives impact stakeholders through talent recruitment, development, and retention; employee engagement; diversity, equity & inclusion (DEI); sustainability-based client services; professional integrity and business ethics; cybersecurity and data privacy; and sustainability.

Next Steps

• Stockholders are encouraged to vote by proxy in advance of the Annual Meeting.
• The company will file a Current Report on Form 8-K with the SEC including the final voting results from the Annual Meeting within four business days of the Annual Meeting.
• Stockholder proposals intended to be presented at the 2025 Annual Meeting of Stockholders must be delivered to the Corporate Secretary at our principal executive offices no later than March 28, 2025 in order to be included in the proxy materials for that meeting.

Key Dates

Keywords

Annual Meeting, Proxy Statement, Stockholders, Executive Compensation, Board of Directors, KPMG, Auditor, Director Election, Houlihan Lokey, HLI