Market Function of Activist Shareholders

The video discusses the role and impact of proxy battles in the US capital markets, highlighting when they create value for companies and shareholders. It explores current trends, including a decline in activist campaigns due to economic factors like interest rates and M&A market conditions. The video also covers the advisory business in proxy contests, criteria for success, and the influence of ESG and economic activism.

What is the primary role of activist investors in the context of proxy battles?

• To increase company profits by any means necessary

• To ensure companies pay higher dividends

• To enforce good capital allocation and management strategies

• To replace the entire board of directors

What is one reason for the decline in activist campaigns mentioned in the transcript?

• Decreased media coverage

• Lack of interest from shareholders

• Higher interest rates

• Increased government regulations

How do companies typically select advisors for proxy battles?

• By selecting advisors with the most media presence

• By randomly picking from a list of available advisors

• By choosing the cheapest option available

• By carefully selecting experienced and trusted advisors

What tends to garner more attention from boards and management teams than ESG issues?

• Corporate social responsibility

• Employee satisfaction

• Public relations campaigns

• Economic activism