ActivistInsight Reports on the Record Levels of Activism in the UKThe UK market is proving to be a hotbed for shareholder activism, with this trend expected by different players in the market to continue. 16 October 2019
ActivistInsight reports that due to the overriding story of UK markets lacking liquidity due to market uncertainty, whether economic or political, companies are struggling to sell operating turn-arounds to the market. For as long as there are sufficient opportunities for growth, activists will find this to be a “fertile hunting ground”.
One of the areas in which they target is that of executive compensation. SquareWell Partners’ latest Progress Report is featured to highlight the common theme amongst investors of dialogue building to a more constructive relationship. This constructive relationship only proves to be beneficial to companies facing an activist threat due to the development of trust between the investor and the company. UK Boards have been, for the most part, willing to take sensible actions on behalf of their shareholders. Digging in and keeping quiet would not make for better governance or better activist defence.
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