Executives have become accustomed to being questioned by all parties about the strategy and leadership of their business. Activist Insight, a market research firm, surveyed 523 companies worldwide for Activist Hedge Funds between January and June, compared to 570 in 2013 and 805 in 2017. Last year, two major index makers, S & amp; P Dow Jones and FTSE Russell closed multi-class companies from their flagship indices. On August 22, Glass Lewis, a consulting firm that advises shareholders on voting, rejected Sports Direct’s management and called on the UK retailer’s owners to withdraw their founder Mike Ashley from the Board of Directors. Even the previously silent asset managers hold on tight.
Institutional investors who hold the largest holdings in most listed companies have generally renounced corporate governance advisors. A positive recommendation from Glass Lewis or Institutional Shareholder Services (ISS), the two giants in the shareholder advisory industry, could add up to 20 percentage points for board approval, board of directors and similar claims, according to a recent analysis by researchers at Stanford University. ,