Overview
Schulte partner and co-head of the Global Shareholder Activism Group Ele Klein was quoted in the Diligent Blog on the growing number of settlement agreements between activists and boards.
Settlements at US targets rose by 15% last year, reflecting increased skill among activists and boards in assessing proxy fight risks and outcomes. Data from Diligent Market Intelligence shows 60 agreements with activists last year, up from 52 in 2023. Activists also secured 88 board seats via settlements, compared to 83 in 2023. “For the most part, the number one factor is that the company side and the activist side have both become more sophisticated in understanding the outlook and whether something is worth fighting or not,” said Ele.