Many institutional investors have made increasing the diversity of corporate boards a priority, yet activist investors that rely on the support of these institutional investors often make boards less diverse. Boards should take advantage of this divergence between the priorities of institutional investors and the actions of activist investors in resisting activist campaigns, and prepare for those campaigns by increasing board diversity.
Activists’ Effect on Board Diversity
The financial press has highlighted how activists reduce board diversity,  and a recent white paper by ISS and the Investor Responsibility Research Center Institute (“IRRCi”) has provided proof. The ISS and … Read more