Ackman Shifts Activism Tides
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While the first quarter of 2022 has already proven to be a busy start to the year for activist investors, one prominent player is stepping out of the spotlight.
Bill Ackman, who made a name for himself in part through his very public activist fights, has shared in Pershing Square’s latest annual report that he and his firm have “permanently retired from this line of work.” This step back from public activism and from short-selling campaigns after several public battles over the years with brands such as J.C. Penny, Target and Herbalife, creates a significant shift marked by the firm’s quieter, behind the scenes approach to driving value. It remains to be seen if Ackman’s strategy leads to an uptick of more private discussions behind the curtains between activists and their targets.
As proxy season moves forward, conversations around CEO pay have made a triumphant return. Harvard’s Forum on Corporate Governance points out that executive pay more broadly is back up after going down during the early days of the pandemic, with a $14.3 million increase in median total direct compensation for companies measured in 2021. In the backdrop of the pandemic, the authors note, many critics will argue that these growing pay packages are unjust “particularly as median employee pay remains low.”
Intel made headlines this week for a $178.6 million pay package in its 2021 proxy filing, with Apple CEO Tim Cook not too far behind. We can be sure that these will remain hot button issues for companies, subject to criticism and shareholder discontent, sometimes regardless of company performance and current corporate priorities.
Have a great weekend,
The GPP Team
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Financial Times: Bill Ackman to Abandon Public Battles For Quieter Investment Approach
Pershing Square Capital Management’s founder said on Tuesday that he planned to be a less vocal shareholder, buying large blocks of publicly traded companies and working behind the scenes on any concerns or strategies. Read More
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The New York Times: An Activist Investor Goes Quiet
Ackman has “permanently retired” from activist short-selling, which he described as the “noisiest form of activism.” Read More
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Reuters: Intel CEO Earned 1,711 Times More Than Average Company Worker in 2021
Compared to Pat Gelsinger, former CEO Bob Swan had earned 217 times more than the average Intel employee in 2020. Read More
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The Harvard Law School Forum on Corporate Governance: Proxy Season 2022: Early Trends in Executive Compensation
Two years after the start of the pandemic, the early data shows that CEO pay is back on the rise. In 2021, median total direct compensation for companies included in the analysis increased to $14.3 million. Read More
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Reuters: Credit Suisse Faces Investor Call For More Climate Transparency
Banks are under intense pressure from investors to stop financing fossil fuel development to limit climate change and to help businesses transition from a carbon economy. Read More
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Financial Times: Swiss Re Investors Urged To Oppose Ermotti’s Re-Election Over Lack of Gender Diversity
In a report ahead of the vote on April 13, Institutional Shareholder Services rebuked the Zurich-based group, which is one of the world’s biggest reinsurers and a vocal advocate of diversity, for falling short of an industry benchmark of having at least 30 per cent of boards made up of women. Read More
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CNBC: Carl Icahn is Expanding His Animal-Welfare Campaign to Kroger, After First Targeting McDonald’s
Icahn has submitted a plan to nominate two candidates to Kroger’s board, the Cincinnati-based company said in a release Tuesday. Read More
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Bloomberg: Nielsen to Go Private in Deal Valuing TV-Ratings Company at $16 Billion
Nielsen Holdings Plc has agreed to be acquired by a consortium including Evergreen Coast Capital Corp., an affiliate of Elliott Investment Management, and Brookfield Asset Management Inc. Read More
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Reuters: US Foods Appoints Two New Directors Amid Activist Pressure
The company said on Tuesday it has appointed Marla Gottschalk, who serves on boards of Reynolds Consumer Products and Big Lots; and Quentin Roach, an executive at Mondelez International. Read More
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The Deal: Southwest Rejects Icahn’s Improved Bid, Contest Nears
The comments come after Icahn on March 14 hiked his bid for Southwest Gas Holdings to $82.50 a share, up from $75 a share, or $4.4 billion. The utility rejected the lower bid on Nov. 9 with similar comments. Read More
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Hosted at the Lotte New York Palace, this event will focus on the latest campaign practices of activists, how they unfold, their outcomes, and how boards and executives work constructively toward improved stock performance.
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Hosted at the Marriott at the Brooklyn Bridge, this event will feature 400+ CEOs and senior-level executives from business, finance and Government, focused on building networks, collaboration and creating a blueprint for a commercially successfully transition.
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Hosted in San Francisco, Berkeley’s Eighth Annual Spring Forum is the preeminent West Coast gathering of regulators, investors, executives, practitioners, and academics, featuring conversation on the M&A landscape, recent M&A caselaw and antitrust. The Forum is hosted by Berkeley Center for Law and Business and Gladstone Place Partners is an event sponsor.
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