76% of institutional investors support activism

Author: Zoe Thomas | Published: 27 Jan 2015

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 change.

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...