Notes:

• Cross-Border Activism:
  • Activist investors are increasingly targeting companies in different jurisdictions.
  • Challenges: Different legal frameworks, regulatory environments, and cultural norms can complicate activism.
  • Example: An activist in the US targeting a European company may face different rules regarding disclosure and campaign tactics.
• Regulatory Divergence:
  • US: More litigious, rules-based, and focused on shareholder primacy.
  • EU: More principles-based, with a stronger focus on stakeholder interests and sustainability (e.g., CSRD, SRD II).
  • UK: “Comply or Explain” approach, with a strong emphasis on board culture and long-termism.
  • Emerging Markets: Often have weaker governance standards, making activism more impactful but also more risky.
• Global Proxy Advisors:
  • Firms like ISS and Glass Lewis operate globally and provide voting recommendations across jurisdictions.
  • Impact: Their guidelines influence voting behavior worldwide, creating a degree of standardization in governance practices.
• Cross-Border M&A and Activism:
  • Activists often target companies in cross-border M&A deals to push for better terms or to block deals they view as value-destroying.
  • Regulatory Hurdles: Activists must navigate complex regulatory approvals in multiple jurisdictions (e.g., CFIUS in the US, European Commission in the EU).
• The Future of Global Activism:
  • Increased Coordination: Activists are forming global networks to share strategies and resources.
  • Focus on ESG: Global activism is increasingly focused on climate change and social issues, driven by international agreements (e.g., Paris Agreement).
  • Technology: Digital tools are making it easier to coordinate global campaigns and engage with shareholders across borders.