Tag archives: shareholder engagement

An age of shareholder empowerment

In a corporate directors survey (the Survey) entitled “The swinging pendulum: Board governance in the age of shareholder empowerment”, PricewaterhouseCoopers LLP (PwC) presents current trends in investor influence and their impact on governance practices of boards and management teams.

Conducted amongst 884 company directors in the summer of 2016 with respondents representing over 24 industries, the Survey highlights the increasing influence of investors and board sentiment in this “new age of shareholder empowerment”.

Board composition

When recruiting new board members, investor recommendations appear to carry increasing weight. The Survey notes that there has been an … Continue Reading

Key takeaways from the first half of 2015

ISS’ preliminary postseason review for 2015 provides a report on U.S. activism trends in 2015.  ISS identifies five key takeaways from the first half of 2015:

  • Proxy access proposals arrived in a big way this season, with almost 120 proposals and average votes in favour of 54.4% (a jump of more than 20 percentage points from 2014). A typical proposal grants shareholders who have held 3% of the company’s shares for 3 years the ability to include, in the company’s management proxy circular, nominees for up to 25 per cent of the board.  As discussed in our previous posts by
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Shareholder engagement: A strategic opportunity

Shareholder engagement is a key tool in a board’s toolkit to prepare for and respond to potential activist investor campaigns.  A shareholder engagement program can provide valuable information on investor opinion, allow the board to head off issues before they become the subject of an activist campaign, and cement the support of important long-term investors.

Based on dialogue with institutional investors, investor associations and advisors, the EY Center for Board Matters reports that most investors believe that whether activism is beneficial over the long term depends on the particular circumstances.  Many investors stressed that in an activist situation, they talk … Continue Reading

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