Activism Archive

Sep 07, 2020
Investors maintain pressure on UK companies over executive pay
Investors have kept up the pressure on UK companies over corporate governance issues despite the huge disruption caused by the Covid-19 outbreak, according to new research. The proportion of FTSE 350 companies receiving significant opposition (at least 20 percent) to a resolution at the AGM was 22 percent in the first half of 2020, the same level as last year, finds a report from FTI Consulting and Proxy Insight. But when you include abstentions, which are of...
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Sep 02, 2020
Australian companies warned over modest size of executive pay cuts
Australian companies are at risk of a backlash from investors over the relatively small size of executive pay cuts made during the Covid-19 outbreak, according to a new report. Given the large numbers of staff laid off or stood down during the pandemic, companies have come under pressure to ensure senior management and the board share the pain by forgoing some of their pay. But the changes announced so far appear modest and could store up problems for companies at t...
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Aug 24, 2020
‘You need the trust of management’: AVI’s activist approach in Japan
How has your firm’s approach to Japan evolved? We have been investing in Japan for two decades now. Until about 2017, we didn’t have much of an allocation but now we have invested more than £400 mn ($524 mn), which is almost 50 percent of our assets. What changed for us was the introduction of the corporate governance code in 2015, which was part of Shinzo Abe’s three-arrow policy to try to improve corporate value and increase the use ...
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Aug 07, 2020
The threat of employee shareholder activism
Boardrooms across the country are increasingly discussing human capital management issues, as investors bring subjects like diversity and inclusion, employee safety, retention and engagement into focus. With so many CEOs of US companies signing the Business Roundtable statement on stakeholder value, and Covid-19 raising legitimate concerns about employee safety, companies can expect greater scrutiny of how they treat their employees in the future. The majority of sh...
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Jul 22, 2020
Institutions take growing role in activism
Institutional investors are increasingly taking the lead on shareholder activism, causing a surge in campaigns focused on corporate governance, according to new research.  CGLytics, the governance data provider, looked back at activist activity globally over the last three and a half years. It finds the number of campaigns focused on governance grew by 45 percent between 2017 and 2018 and by 26 percent between 2018 and 2019.  The first half of 2020 saw 797 ...
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Jun 24, 2020
Two thirds of investors open to working with activists
Almost two thirds of investors say they are open to talking to activist investors about a company they have a position in, according to recent research from IR Magazine. While many companies continue to experience volatile share prices and balance sheet concerns – with a significant increase in the number of companies adopting poison pills this year – investors are more likely to support an activist campaign now than they were three years ago. T...
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May 29, 2020
AGMs: Pandemic provides proof of popularity
We have become used to living in lockdown. We have become used to birdsong replacing traffic noise, to working from home, to virtual meetings. We have become used to Webex, to staying in, to social distancing. Many are predicting that the changes thrust upon us by Covid-19 could have a lasting impact on the world of business and work: business travel, large offices and meetings are set to shrink as professionals around the world weigh up the costs and benefits of adopting ...
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Apr 29, 2020
Shareholder Activism report now available
IR Magazine has released a new report examining attitudes and practices toward shareholder activist campaigns. The report looks at this issue from three key viewpoints: IROs, buy-side investors and sell-side analysts. Findings are based on responses from the IR Magazine Global IR Survey 2019 and the IR Magazine Global Investor Survey 2019, both conducted in the latter half of last year. This report examines how companies respond to activist campaigns and wh...
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