Strengthening Leadership TeamsInvestors are forcing companies to strengthen their top teams amid coronavirus uncertainty, leading to record boardroom change 28 July 2020
Lina Saigol and David Ricketts of MarketWatch highlight in their latest article that investors are forcing companies to strengthen their top teams amid coronavirus uncertainty, leading to record boardroom change. The average tenure of outgoing lead executives was slightly less than seven years.
This year has seen a spate of changes in boardrooms worldwide, as companies come under pressure from investors to shuffle their executive teams to steer them through the coronavirus crisis.
The trend is most pronounced in the US, where companies have experienced higher levels of executive departures than their counterparts in both the UK and Europe.
Activist investors are expected to launch more and bolder campaigns for change among European companies in the year ahead, advisers told Reuters, after a record number in 2023.
AQTION, a subsidiary of SquareWell Partners, published its inaugural study – ‘Stewardship in AQTION’ – which details how the world’s largest 65 asset managers and owners steward their portfolio companies and how they incorporate extra-financial considerations into their investment decision-making processes.
Carl Icahn is preparing for a second board battle at gene-sequencing company Illumina after shareholders elected his candidate, Andrew Teno, to the company’s board and ousted the chairman, John Thompson, in May. Icahn then successfully pushed out former CEO Frances DeSouza in June.