Governance Concerns Attracts Activist Investors

SquareWell’s recent survey, The Long and the Short of It: Institutional Investors’ Views on Activism, was recently featured by Ana Medina in Expansión.

The study, based on input from over 30 global institutional investors managing more than $35 trillion in assets, explores how investors perceive shareholder activism, the factors influencing their support, and how boards can better engage to prevent escalations.

Among the key findings:

• 84% of institutional investors agree that poor governance attracts activist investors.
• Activism is widely seen as a catalyst for change (77%) and a driver of accountability (71%), despite concerns around short-termism and narrow agendas.
• Board-related activism garners the strongest support, particularly when focused on governance and management changes.
• The strength of the activist’s case (87%) and their track record (71%) are the most important factors when deciding whether to support a campaign.

You can read the full article here and access the full report here.