Shareholder Engagement: A Strategic Opportunity

Shareholder engagement is a key tool in a board's toolkit to prepare for and respond to potential activist investor campaigns.  A shareholder engagement program can provide valuable information on investor opinion, allow the board to head off issues before they become the subject of an activist campaign, and cement the support of important long-term investors.

Based on dialogue with institutional investors, investor associations and advisors, the EY Center for Board Matters reports that most investors believe that whether activism is beneficial over the long term depends on the particular circumstances.  Many investors stressed that in an activist situation, they talk to both sides – the activist and the company – before they develop their views.