CD&As: An Activism Minefield for the Unwary
BDO Board of Directors Forum | June 2017, Palo Alto
Activism is no longer just the purview of a few activist hedge funds, but is increasingly being used by a broader base of investors to elicit corporate change. Shareholders become activists for a complex set of issues, with CEO & executive compensation being used as the entry point of discussion about larger strategic/financial issues. For the unwary, compensation can become the trigger point to support that the strategy is flawed, with the flaw being reinforced by compensation.