Communications Challenges for the Post-Activist Proxy Contest World
The Harvard Law School Forum on Corporate Governance and Financial Regulation 2017-07-17
The New Normal for Activist Investor Campaigns
Over the past several years, the end game for activist investor campaigns has increasingly become a consensual settlement of some sort, rather than a proxy contest to “the death”. In 2016, 45 percent of activist proxy contests ended in a settlement, up from 35 percent in 2012. Looking further back, the trend becomes even starker—less than 20 percent of proxy fights in 2001 ended in settlement. The percentage of activist campaigns ending in settlements prior to initiation of a proxy contest, of course, is far higher.