CEO of Computershare’s Proxy Business in Europe
Cas Sydorowitz
Cas has a longstanding knowledge of Global proxy voting mechanics and key governance matters affecting issuers and shareholders globally.
Enhance engagement
Activists investors have a specific view and most know the companies they invest in far better than some of the big investors. They often pick a company because they believe there is unlocked value. So talk to them.
Maintain a relationship
Develop and maintain a relationship throughout the year. Too often companies don’t have a regular engagement with activist investors, and only go to them on a transaction-by-transaction basis. Engage with them in a long term.
Study the tactics
Understand the type of campaigns the activists are running – do they use the media as a stalking horse or speak to management behind the scenes, for instance.
Undertake due diligence
Do your own due diligence on the activist. Understand what materials they use to form their thesis. While most activist investors tend to be savvy and knowledgeable, the fact is they are outside the company, and do not have at hand as much information and insight as management does.
Perspective 1: Activist investors
Buy up chunky stakes of undervalued companies - Generate activist campaigns - Mostly individual investors - Unite with other minority shareholders to push for management changes
Perspective 2: Passive Investors
Own more of the listed universe than activist investors - Generate activist campaigns - Mostly institutional investors - May use their clout to unite with management and fend off activist investors’ campaigns
Want to know more?
Please read the full article or talk to our expert team if you have any enquiries on shareholder engagement.