November 18, 2016
Shareholder Activism: What Do the Activists Think?
This Schulte Roth study reports the results of a survey of activist investors about their experience with shareholder activism & their expectations for activity in the next 12 months. The survey asked a number of provocative questions – including “Is the age of the settlement over?” “Who’s vulnerable?” and “What defenses work?”
One conclusion seems clear – activism no longer has an off-season:
Fading are the days of the “activist season” – the predictable six-month stretch between the time when activists build their stakes and submit notice of their proposals to companies and when annual meetings are held in May and June. A significant number of activists have turned to post-annual meeting tactics, such as the use of special meetings, consent solicitations and simple public campaigns, to exact corporate change. Thus, not only should we expect activism to continue to thrive, we should expect it to become an ever-present activity in the marketplace seeking to unlock value and hold managements accountable.
– John Jenkins