Summary of Activism in 2023 and a Preview of Activism in 2024
While shareholder activism in the U.S. was robust in 2023, we fell just short of a breakout year in terms of the number of activist engagements and other metrics. As expected, many activists, particularly would-be first-time activists, stood on the sidelines in order to get a sense of what a full year under the universal […]
Andrew Freedman is Co-Managing Partner and Chair of Shareholder Activism Practice at Olshan Frome Wolosky LLP. This post was prepared for the Forum by Mr. Freedman. Related research from the Program on Corporate Governance includes The Long-Term Effects of Hedge Fund Activism (discussed on the Forum here) by Lucian A. Bebchuk, Alon Brav, and Wei Jiang; Dancing with Activists (discussed on the Forum here) by Lucian A. Bebchuk, Alon Brav, Wei Jiang, and Thomas Keusch; and Who Bleeds When the Wolves Bite? A Flesh-and-Blood Perspective on Hedge Fund Activism and Our Strange Corporate Governance System (discussed on the Forum here) by Leo E. Strine, Jr.
While shareholder activism in the U.S. was robust in 2023, we fell just short of a breakout year in terms of the number of activist engagements and other metrics. As expected, many activists, particularly would-be first-time activists, stood on the sidelines in order to get a sense of what a full year under the universal proxy card (“UPC”) rules would look like. Similarly, some activists were hesitant to jump into the fray until the Securities and Exchange Commission (“SEC”) announced final rules governing its proposed modernization of the Schedule 13D reporting system. Nevertheless, shareholder activists proved to be highly impactful in 2023 in terms of their ability to influence boards, obtaining a record number of board seats since 2018.
