The global financial crisis that began in 2008 led to a historic
rise in shareholder activism. We would expect a similar increase in
activism as a result of the COVID-19 pandemic, as depressed share
prices and beaten down balance sheets, as well as low borrowing
rates, will provide activists with unprecedented opportunities.
However, we would expect that this new wave of activism would be
delayed in the short term until the market stabilizes or there is
more clarity on the duration of the pandemic. This reprieve in the
coming months will allow companies to prepare for coming
campaigns.
Limited Activism in the Near Term
In the near term, we anticipate that activists will struggle to
capture the attention of shareholders who are otherwise consumed
with news of COVID-19 and its public health and economic
consequences. Corporate governance, executive compensation, board
performance, relative financial results, traditional approaches to
unlocking shareholder value and
