This week, Mastercard announced plans to link executive pay to ESG initiatives in a letter posted to the company’s website. In the letter, CEO Michael Miebach highlighted increased conversation around issues such as climate change, social justice and the wealth gap and the responsibility for Mastercard to blend “purpose and profit.” The new incentive plan will be based on carbon neutrality, financial inclusion, and gender pay parity.
LabCorp launched a review of its strategy citing its undervalued stock, Bloomberg reported. The move comes amidst pressure from activist Jana Partners, who recently nominated directors to the lab testing company’s board, and questions regarding the long-term viability of its drug-development unit, Covance. Jana Partners has been busy in recent months, also taking a stake in insurance company Encompass, which too launched a strategic review of its home health and hospice business.
SouthernSun Asset Management and Cooke & Bieler joined the group of shareholders in opposition to Extended Stay America’s $6 billion sale to Blackstone Group and Starwood Capital Group, Bloomberg reported. Michael Cook, SouthernSun CEO said in a letter to its investors that the deal, “undervalues Extended Stay’s business, is at odds with management’s own assessments, occurs at a profoundly inopportune time relative to the market recovery, and was the product of a flawed and truncated diligence process.” The move continues the growing number of traditional active fund managers voicing public concerns and even opposing deals in some cases.
Have a good weekend,