In recent years, activist preparedness has become a priority for Boards of Directors seeking to mitigate the reputational risk that may result from an activist campaign. Vallum assists companies with activist preparedness through communications audits, vulnerability assessments, management trainings and the production of collateral materials that could be used in the event a company were targeted by one or more activists.Best balance of cost and features: Vallumīefore buying a firewall for your Mac, you first have to decide whether you actually need one. We advise our clients’ management teams, including their Boards of Directors, on a wide range of activism defense strategies. We understand the tactics used by activists and how best to respond, depending on the circumstance. Some campaigns are characterized by a slow paced, more suggestive approach, while other campaigns move quickly, aggressively and publicly. In contested situations, we provide our clients with a coordinated, multi-channel activist response program, one in which we draft response letters and defense presentations, while conducting investor perception studies and media interviews. In the court of public opinion, we vigorously defend the interests of our clients, their approach to managing the business, as well as the long-term opportunities for value creation evident in this approach. Approximately 70% of these campaigns involved a proxy fight, with activist winning approximately 47% of the time.Īlthough many of these campaigns were led by a select group of large, well-known activists, increasingly, we have seen smaller hedge funds join activism syndicates as a means of effecting change. It is not unusual for one activist to wage multiple campaigns in a given year, depending on the depth of resources available to them. While most activist campaigns target companies with capitalizations in the $1 to $10 billion range, companies in all market capitalization ranges are potentially susceptible to activist engagement, as illustrated by several high-profile campaigns in recent years. based public issuers, with approximately 1 in 4 campaigns led by first-time activists. ![]() Last year, we estimate that there were 365 activist campaigns waged against U.S. Over time, we expect ESG reporting to become compulsory, as regulators adopt uniform standards for non-financial ESG metrics. In recent years, the focus on ESG metric standardization has made significant progress, as several well-established disclosure frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Disclosures (TCFD) have provided public companies guidance around materiality. Looking ahead, we expect this trend to continue, particularly given the positive correlation between good corporate citizenship and long-term economic returns.įor companies seeking to screen positively into ESG-sensitive portfolios, the scope of public disclosure has grown to include a wide range of non-financial performance metrics that assess enterprise risk. During the past five years alone, it is estimated that global ESG-focused assets under management increased by nearly 35% to $30 trillion, representing a significant pool of potential fund flows for qualifying issuers. ![]() Environmental, Social & Governance (ESG) PracticeĪt Vallum, we believe that a robust ESG reporting function is an integral part of an effective investor relations program.
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