
The Limits of Enlightened Shareholder Activism
One of the more visible market shifts over the past decade is the rise of what might be called “enlightened shareholder activism” – the use of shareholders’ governance rights to encourage corporations to take action around environmental, social, and governance (“ESG”) concerns. A prominent example is the successful campaign in 2021 of “Engine No. 1,” an impact-investing hedge fund that put three directors on the board of ExxonMobil. The 2022 proxy season seems poised to be another where ESG proposals gain strong support from investors.
Enlightened shareholder activism has been fueled by regulatory and market changes that have strengthened shareholder … Read more