NACD Releases Guidance to Help Corporate Boards Prepare for an Activist-Investor Challenge

WASHINGTON, April 25, 2016 (GLOBE NEWSWIRE) -- The National Association of Corporate Directors (NACD), the advocate for the profession of directorship, today announced a new guide that can help directors prepare for and respond to shareholder-activist challenges. Director Essentials: Preparing the Board for Shareholder Activism addresses trends in activist-investor campaigns, outlines the methods activists use to influence company management, and highlights 10 high-profile activists, their strategies, and the companies they’ve targeted. The report offers detailed questions and resources that boards can incorporate into their agendas to help forestall an activist challenge.

NACD’s 2015–2016 NACD Public Company Governance Survey found that more than 20% of respondents’ boards were approached by activist investors during the past year. Yet 46% of those surveyed have no plan in place for responding to these challenges.

Boards can use this guide to

  • Learn what company characteristics attract activist investors
  • Identify their organizations’ areas of vulnerability to activist challenges
  • Conduct in-boardroom discussions to prepare for activism
  • Create an activist response plan

“With the tremendous growth in the influence of activist investors over the past few years, year-round shareholder activism has become the new normal in the boardroom,” said NACD’s CEO Ken Daly. “Director Essentials: Preparing the Board for Shareholder Activism offers critical guidance to help boards better understand their shareholder base, assess their vulnerabilities, and create a response plan.”

This new report is featured on the NACD Board Resource Center on Board-Shareholder Engagement, a curated collection of NACD resources designed to support directors as they engage with shareholders.

Visit the NACD Board Resource Center on Board-Shareholder Engagement at www.NACDonline.org/ShareholderCenter.

About NACD

The National Association of Corporate Directors (NACD) helps more than 17,000 directors lead with confidence. As the recognized authority on leading boardroom practices, NACD aspires to a world where businesses are sustainable, profitable, and respected, and where stakeholders trust directors to develop strategies that create long-term value and provide effective oversight. World-class boards join NACD to elevate performance, gain foresight, and instill confidence. Fostering collaboration among directors, investors, and governance stakeholders, NACD has been shaping the future of board leadership for more than 35 years. To learn more about NACD, visit www.NACDonline.org. To become an NACD member, please contact Steve Kalan at Join@NACDonline.org or 202-572-2089. If you are already a member, contact your NACD Concierge at Concierge@NACDonline.org to ensure that you are receiving the best value from your membership.

Media Contact: Henry Stoever Chief Marketing Officer 202-775-0509 hstoever@NACDonline.org

Source:National Association of Corporate Directors