Global activism activity reached pre-pandemic levels in 2023 and this year is poised to set records, according to Diligent’s newly released report covering its 2024 Proxy Season Preview conference. Panelists said the universal proxy card (UPC) is doing double-duty: it’s a potential driver of contests going all the way to a vote and a gateway for nontraditional activists to influence Board composition. One example of that: an uptick in campaigns targeting individual directors who are responsible for ESG oversight and aren’t pulling their weight in the eyes of purpose-oriented activists. Executive pay will also face increased scrutiny in 2024, panelists predicted. Shareholders want clarity on the link between KPIs tied to executive pay and how they drive shareholder returns. The Diligent report suggests that some would-be activists may have sat on the sidelines during the first year of the UPC, but with one year “of the new regime under their belts,” shareholders may be more emboldened in ’24.
In the latest on Disney’s proxy contest with Nelson Peltz, Deadline reported that New York City Retirement Systems backed Disney’s Board with NYC’s Comptroller Brad Lander commenting, “Nelson Peltz’s troubling performance on other company boards raise(s) concerns about the value he would bring to the table...” Separately, Yale’s Jeffrey Sonnenfeld and Steven Tian co-published a piece in the Harvard Law School Forum on Corporate Governance detailing Disney’s outperformance under CEO Bob Iger compared to the performance of companies with Peltz/Trian on the board, ultimately calling Peltz an “illusionist.” Disney, for its part, sent its final brochure to shareholders this week, with Alice in Wonderland’s the White Rabbit urging shareholders to vote the – ahem – “White” card.
A programming note: Be sure to mark your calendars for the 10th Annual Spring Forum on M&A and the Boardroom on April 17th, where Freshfields and the Berkeley Center for Law & Business are bringing dealmakers together in San Francisco to discuss the latest on antitrust and M&A.
Have a great weekend,
GPP Team
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