Deloitte: Activists in the Boardroom: How to Prepare and Keep the Dialogue Productive – Deloitte Risk

[I]ncreasingly activist shareholders are reaching the boardroom by winning proxy challenges or obtaining settlements that allow them to designate one or more board directors.

As a result, boards should consider making advanced preparations for the prospect of activist directors joining their ranks, with an eye to legal, operational and cultural considerations that may affect board room decision-making, such as potential bylaw and governance policy changes, disruptive impacts on employees and the possibility of conflicts among directors. “To some extent, shareholder activism is a debate over how to use capital and the issue can be approached in a constructive way,” noted Chris Ruggeri, principal, U.S. M

via Activists in the Boardroom: How to Prepare and Keep the Dialogue Productive – Deloitte Risk .

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