Among the many benefits of living in a democracy is the right to participate in electing our representatives. This applies not only to our political process, but also to our corporate governance system. As shareholders, we expect and are afforded the right to vote for those who will represent our and our company’s best interests: the members of the board of directors. We wouldn’t have it any other way.
We’ve seen shareholder activists become increasingly active in recent years, looking to put themselves or their surrogates into board seats. Their agendas range from increasing dividends and share buybacks to spinning off business segments to changing business strategies or reducing executive pay. Often the focus is on ousting current directors and installing those who will push for the activists’ own desired goals.
