A majority of boards represented by nearly 360 public company directors responding to Spencer Stuart’s most recent pulse survey have taken concrete steps to prepare for an activist situation, and a significant 75% have already identified their go-to activist outside law firm/counsel.
Equally noteworthy, nearly half of respondents say their activism preparedness action plan has encompassed a change in board composition and an upgraded board evaluation.
Aside from selecting their outside counsel, nearly two-thirds of directors say their board has identified an investment bank/outside financial adviser. Comparatively, 41% have identified a communications firm and less than one-quarter have identified a proxy solicitor.
In addition, in response to the new universal proxy rule, nearly 40% of boards have reviewed— and nearly one-quarter (23%) have amended—their corporate bylaws. More than three-quarters of directors use quarterly analyst calls and regular management updates to stay informed of investor sentiment.