The art of engagement

With shareholder activism increasingly validated by stewardship codes and promoted as a value proposition, publicly traded companies must master “The Art of Engagement” or risk being targeted by the growing ranks of activist investors. Activism today is not just the province of hedge funds, governance advocates and special interest groups who specialize in disruptive public campaigns.  It increasingly involves behind-the-scenes discussions with sovereign wealth funds, pensions systems and other institutional investors managing assets for the long term.  Companies should be on top of the issues and engage proactively with their shareholders long before an activist comes knocking on their door.