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Shareholder Activism: Setting the Stage for Proactive Defense
Manage episode 301430436 series 2910096
Join BDO's Center for Corporate Governance Amy Rojik as she sits down with Patrick Gadson, Partner –Shareholder Activism and Mergers and Acquisitions at Vinson & Elkins, to discuss defense strategies for boards and management teams to consider when challenged by activist shareholders.
Key Takeaways:
- Boards of companies (all sizes) that are underperforming need to truly understand BOTH economic weaknesses in addition to other elements for improvement (e.g., ESG) that activists can use to promote their agenda
- To engage effectively with activists truly requires boards active in knowing and developing relationships with their shareholder base
- When put into an activist situation, directors need to understand the thick skin of and ability to go the distance in lengthy contests that activists possess that can often lead to “activism fatigue” in the boardroom that may affect good decision-making of directors
- Avoid the emotion and strategically scenario plan with an objective party who can truly survey relevant facts and circumstances through an unbiased lens
83 jaksoa
Manage episode 301430436 series 2910096
Join BDO's Center for Corporate Governance Amy Rojik as she sits down with Patrick Gadson, Partner –Shareholder Activism and Mergers and Acquisitions at Vinson & Elkins, to discuss defense strategies for boards and management teams to consider when challenged by activist shareholders.
Key Takeaways:
- Boards of companies (all sizes) that are underperforming need to truly understand BOTH economic weaknesses in addition to other elements for improvement (e.g., ESG) that activists can use to promote their agenda
- To engage effectively with activists truly requires boards active in knowing and developing relationships with their shareholder base
- When put into an activist situation, directors need to understand the thick skin of and ability to go the distance in lengthy contests that activists possess that can often lead to “activism fatigue” in the boardroom that may affect good decision-making of directors
- Avoid the emotion and strategically scenario plan with an objective party who can truly survey relevant facts and circumstances through an unbiased lens
83 jaksoa
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