Changes to proxy contest rules coupled with a “dislocation in equity valuations” and “cash on the sidelines” could be the “perfect storm” for an increase in activist campaigns. That’s the view of Sean Donahue, a partner in Goodwin's Capital Markets and Shareholder Activism and Takeover Defense practice. “Someone nominates themselves and a credible candidate, and they have four or five ESG proposals on the hot topics du jour, whether on climate, giving shareholders the right to call special meetings, or social issues, racial equity audits, whatever it is,” Donahue said. “It puts a lot of pressure on companies to give them a board seat or implement two or three of those proposals or find a mutually agreeable candidate.” Read The Deal article and listen to the podcast here.
In The Press June 23, 2022