Nell Minow on Daniel Loeb and Activism

VEA Vice Chair Nell Minow commented on Daniel Loeb’s new position at Nestle on NPR’s “Marketplace.” Activist investor Daniel Loeb announced over the weekend that his hedge fund, Third Point, has taken a $3.5 billion stake in the Swiss food conglomerate Nestle, and he wants some changes at the company. That may sound like a…

Investors expect to meet with Exxon on climate-impact report | Reuters

Exxon Mobil Corp investors will push to meet with oil company officials this summer to hash out elements of a climate-impact analysis following a shareholder vote calling for studies of technology and climate-related risks to its business.Exxon has said that it will reconsider its opposition to the request, not that it would begin discussions or…

IR Magazine | Shareholder activism outside of US increases fivefold since 2010

A strong US dollar, undervalued asset prices and increased global scrutiny of corporate governance practices are contributing to an uptick in shareholder activism incidents around the world.According to the Global Shareholder Activism map from FTI Consulting, there were 342 activism campaigns outside the US in 2016, compared with only 70 in 2010. Over the same…

Why Passive Investing Increases Corporate Activism

In a new paper, the authors of the award-winning “Passive Investors, Not Passive Owners” show how passive investing also leads to more aggressive shareholder activism than there would be otherwise, as passive fund firms add their clout to campaigns waged by activist investors. Their paper is titled, “Standing on the Shoulders of Giants: The Effect…

Greens in pinstriped suits | The Economist

As four of the five largest private oil companies prepare to meet shareholders next week, it is the green brigade in ties and suits that most worries them. At AGMs on May 25th CalPERS, the California state pension fund, with $294 billion of assets under management, plans to pressure ExxonMobil and Chevron, America’s two biggest…

Ackman’s testimony suggests he’s in charge at Valeant – MarketWatch

Ackman, founder and CEO of hedge fund Pershing Square Capital Management, made several comments Wednesday in front of the Senate Special Committee on Aging, which was holding a hearing about drug prices, that board members do not typically make. In a hearing scheduled after the close of the market, he said that the very delayed…

BlackRock Wields Its Big Stick Like a Wet Noodle on C.E.O. Pay – The New York Times

But if Mr. Fink really wants to get the attention of company executives on stock buybacks and other corporate governance issues, why doesn’t BlackRock vote more often against C.E.O. pay packages of companies that play the short-term game?Executive compensation is inextricably linked to the shareholder-unfriendly actions Mr. Fink has identified; voting against pay packages infected…

Cracking down on ‘megalomaniacs and bullies’ – FT.com

Senior finance officials often speak in diplomatically coded language that can seem mystifying to the general public. But not David Wright, who has just ended a three-year term as one of the world’s most senior regulators. When it comes to serious corporate governance failures at large companies, the 64-year-old is clear and unequivocal about his…

Activists Are Not Very Active in Nominating Women

Carl Icahn has nominated 42 people to fill 94 board seats at public companies ranging from EBay Inc. to Herbalife Ltd. in the past five years. Not a single one was a woman. Other activist investors, including Dan Loeb and his Third Point Partners fund and Jeffrey Ubben of ValueAct Capital Management, haven’t done much better….

BlackRock CEO Larry Fink letter on Long Term Value

Larry Fink, the chief executive at BlackRock, the world’s biggest investor with $4.6 trillion, just sent a letter to chief executives at S&P 500 companies and large European corporations. The letter focuses on short-termism both in corporate America and Europe, but also in politics, and asks CEOs to better articulate their plans for the future. The…