Boardroom Guide to Activism

A key aspect of Fidelio’s work with Boards is unlocking value from both shareholder and stakeholder perspectives. While all investors seek value, there’s a clear trend to polarisation in the investment world, with large passive houses at one extreme and increasingly activist active investors at the other. Activism is a major challenge for Boards, with opportunities for activist investors increasingly created by global volatility and cross-border turbulence. It must be the role of the Board to ensure that the company does not become vulnerable. With US$ 65 billion deployed in activist campaigns in 2018, and activism now established as a global phenomenon, Fidelio chose to revisit the theme of Board preparedness. At a Board Breakfast earlier this year we were pleased to welcome Harlan Zimmerman, Senior Partner at Cevian Capital, and Cas Sydorowitz, CEO, Corporate Advisory at Georgeson. Fidelio’s guests also included Chairs, Board Members and senior executives from a range of sectors. A lively debate resulted in six takeaways representing a practical guide to Board readiness:

1. Know your activist – from high profile

2. To low profile, long-term activism

3. Activists invest in research

4. The activist prescription is often predictable

5. Activists operate in the Boardroom

6. Activating the Nomination Committee

Against this activist backdrop, wise Chairs are proactively preparing their Boards. For full details, click here.