A shareholder proposal from a Catholic group has led to an agreement from the management and board of a corporation that operates private prisons. But the proponents are not sure how significant that agreement will be. These findings were detailed in “Proposal 4” on the proxy statement that GEO published ahead of the shareholders meeting….
Tag: activism
Bayer shareholders rebuke CEO over Monsanto deal | Financial Times
Bayer’s supervisory board stood behind its chief executive and top management on Friday in spite of losing a shareholder confidence vote in the fallout from the German pharmaceutical group’s $63bn acquisition of Monsanto and the subsequent drop in its share price. About 55 per cent of shareholders voted against ratifying the actions of the management…
Bed Bath & Beyond Shakes Up Board of Directors
Considering the major shakeup Bed Bath & Beyond (NASDAQ:BBBY) just announced for its board of directors, it seems management believes the activist investors pushing for a complete overhaul of the home goods retailer might have a good chance of success. The home goods retailer announced it was replacing five directors and increasing the number of…
Mutual funds start to put their mouth where their money is | Reuters
Corporate America’s biggest shareholders have traditionally been content with sharing their views on a company’s strategy privately with management. But now some mutual funds are beginning to rethink their stance, amid pressure from investors for them to justify the fees they charge and a push to boost the performance of their holdings. Wellington Management Company…
Investor Engagement and Activist Shareholder Strategies
A Deloitte survey of CFOs of US public companies conducted in 2015 identified the following trends. Our experience indicates these trends still hold true, and in some cases, they have intensified. Just under three-quarters of US public companies surveyed experienced shareholder activism, most often in the form of direct communication to management or the board….
Shareholder activism is on the rise, but companies are fighting back – CNN
VEA Vice Chair Nell Minow is quoted in a CNN story about shareholder activism and the way corporate executives are pushing back, including the fake front groups ACCF and Main Street Investors Coalition. Leveraging shareholder votes for environmental and social ends isn’t new, but such resolutions have been on the rise in recent years. Shareholders…
The Prescience of 5% of Investors: A Monsanto Case Study
Even though a proposal receives only a fraction of shareholder support, it may still be the best available opportunity to bring more foresight to investors, board, and management on an issue that may eventually prove costly to a company. Only a small portion of investors may be exercising prescience on risk management or governance issues…
Wachtell Lipton Discusses the State of Play in Activism | CLS Blue Sky Blog
The most powerful law firm representing corporate management gives their perspective (sometimes self-serving as exaggerating threats leads to higher fees) on the challenges/threats faced by corporate insiders: The threat of activism remains high, and has become increasingly global. Activist assets under management remain at elevated levels, encouraging continued attacks on many large successful companies in…
Unilever U-turn shows how angry shareholders are securing change | Financial Times
It took just a few days after Unilever made public its proposal to move its headquarters to the Netherlands for the company to be faced with its first obstacle.Iain Richards, head of responsible investment at Columbia Threadneedle and one of the consumer goods company’s biggest shareholders, lambasted Unilever in a rare public statement in March,…
Can Shareholders Make Guns and Gun Companies Safer?
VEA Vice Chair Nell Minow writes on Medium: In May, I wrote about shareholder initiatives at gun manufacturer Sturm, Ruger & Company to improve the board of directors and get better information about safety measures and mitigation of harm associated with company products, including efforts to improve gun safety and assessment of the corporate reputational…
