The Evolving Battlefronts of Shareholder Activism

In this Closer Look, we consider current trends in shareholder activism and their potential impact. We examine the introduction of universal proxies, the increase in “activism experience” among directors, and the changing strategies of activists. With the regulatory and market environments in flux, we consider whether the balance of power is shifting, and, if so, toward whom. We ask: • With the adoption of universal proxy, will boards become more accountable for performance or willresponsible boards be caught up in unnecessary campaigns? • Will proxy advisory firms be effective arbiters of board quality when comparing candidates? • How does previous experience with activism campaigns change board preparedness? • How is specialization and competition among activist funds influencing the tactics they employ against targets?