More than three-quarters of institutional investors
are embracing more shareholder activism by supporting the actions of traditional
activists as well as using their own tactics.
A study published this month by FTI Consulting found that 76% of investors
support activism. Most see it as an important catalyst for
Regulators have also taken steps to empower
shareholders by requiring boards to provide more information
and opportunities to vote on shareholder proposals.
Activists’ tactics are increasingly accepted and activist funds have attracted more
capital. As these campaigns have wielded results, more passive
investors have begun to use them.
"It’s a growing trend to have large
shareholders make corporate governance issues their calling
card," said Laura Richman a partner at Mayer Brown in Chicago.
"You end up with an environment...