Shareholder activism was at the forefront of major corporate events during 2013. Proxy fights at Hess, the Dell takeover, and feuds over capital allocation at Apple substantiate recent observations that there is a growing divide between boards and shareholders. In addition to grabbing headlines, shareholder activism has transformed over the course of 2013 through the use of technology and the adoption of new initiatives. As a result of the extensive activity during 2013, companies and their advisers should consider what notable forms of shareholder activism may proliferate in 2014. This article considers the following three areas: the demands of shareholders for disclosure regarding corporate political spending, the use of social media to rally and recruit shareholders to activist causes, and the potential for new restrictions on proxy advisory firms.
Demands for Corporate Political Disclosure
Activist shareholders have recently sought to become more involved in decisions regarding corporate political spending. Although it was considered, the U.S. Securities and Exchange Commission (SEC) did not adopt regulations compelling companies to disclose corporate political spending. Despite the SEC’s reluctance to adopt rules, certain shareholders remain committed to encouraging transparency in corporate political spending. Absent SEC regulation, shareholders have had to find alternative means of “forcing” companies to reveal corporate political spending.
