Five Developments To Follow In 2014 - Shareholder Activism And Engagement: What Direction?

According to a number of commentators, shareholder activism has become the new normal, with activist investors focusing on a broad range of issues, from governance to operations. Interventions have targeted, for example, board composition, executive compensation, dividend policy and proposed mergers. Activists typically employ a variety of tools to advance their goals, such as behind-the-scene diplomacy, letters to management or the board, proxy fights and shareholder proposals for board nomination. Further, shareholder activism is not a phenomenon confined to the U.S. Indeed, throughout 2013, activist investors have targeted Canadian corporations, benefiting from some of the unique features of corporate and securities law that facilitate their interventions.