Perspectives on Shareholder Activism: Lessons from the Past and Implications for the Future
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NACD Northern California
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Kate Azima,
Executive Director
programs@northerncalifornia.nacdonline.org
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About The Event
NACD Northern California's event, "Perspectives on Shareholder Activism: Lessons from the Past and Implications for the Future," featured an engaging discussion with Carl Bass and Derek Zaba who provided a candid discussion reflecting on lessons from past activist campaigns and recent trends in shareholder activism.
Key takeaways include:
- Calm Demeanor: Activism can often raise emotions in the boardroom. It's important remain confident, calm, and build a consensus as to the appropriate course of action, whatever it may be.
- Settlement Strategy: In most cases, it is advisable to settle issues early and effectively to minimize distraction from the business. However, this requires that the activist behave reasonably, which is not always the case.
- Understanding Activists: Boards should be aware of the differences between an activist, actively managed institutional investors and index funds and their approach to their investments/time horizons.
- Shareholder Preferences: Understanding the shareholder base is critical; different investors have different perspectives. Honest and transparent feedback before an activist arrives is crucial.
- Performance Comparison: Be aware of triggers that could attract activists, such as transformations in business models, and be extra prepared during these times.
- Strong Board Relationships: Maintaining strong relationships among board members during stable times prepares them for when a crisis occurs. Preparation and good relations is key.
- Asking Tough Questions: Boards should continuously challenge both themselves and the CEO with difficult questions - think like an activist.
- Listening to Criticism: Stay open-minded to criticism, regardless of the source (investors, former employees, analysts), and maintain a willingness to adjust opinions based on new information.
Thanks to Sidley for generously hosting this event.
NACD Northern California
Contact Us
Kate Azima,
Executive Director
programs@northerncalifornia.nacdonline.org
Find a Chapter
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| NACD and the NACD Chapter Network organizations (NACD) are non-partisan, nonprofit organizations dedicated to providing directors with the opportunity to discuss timely governance oversight practices. The views of the speakers and audience are their own and do not necessarily reflect the views of NACD. |