In this V&E+ interview, Lawrence and Patrick share their thoughts on the 2023 proxy season, peacetime preparation for activism defense, and the HBO show that no one could seem to stop talking about.
The 2023 proxy season just wrapped up. What did we learn?
Lawrence: Data from some of the latest annual meetings is still trickling in, but some of the lessons from the season are already clear. The biggest is that the tide of shareholder activism remains high — and continues to rise.
This season, shareholders submitted a record number of proposals, just as they did in the previous two. And it wasn’t just blue-chip companies that found themselves under attack. Activists targeted companies across market caps, with bold proposals and aggressive tactics.
Patrick: As the saying goes, they are who we thought they were. But boldness and aggression don’t always equal success, and that was certainly the case this season. Despite the record-high volume, support declined — overall and for most proposal types, including ESG-related proposals.
What explains the decline in support?
Patrick: One explanation is the substance of the proposals themselves. Not just this season, but going back a few years now, they’ve grown increasingly demanding and prescriptive, making it harder for them to win support across the electorate.
Lawrence: Yes, and many companies have made meaningful efforts in… Read full interview here
