Meagan Reda Quoted in Agenda on a Dynamic 2023 in Shareholder Activism and the Exciting Year Ahead

Olshan Shareholder Activism partner Meagan Reda was recently quoted in an article in Agenda (subscription required) entitled “Activists ‘Get the Party Started’ Early for 2024 Proxy Season.” The article discusses the proliferation of board seats obtained through activist campaigns in 2023, largely owing to the SEC’s new universal proxy rule and its effect on companies and activists, both of whom generally settled for board seats rather than waging proxy fights in an uncertain environment. “There was some hesitation [from] both sides in 2023,” Meagan said, “resulting in less public battles for board seats, less activists going for board control and more companies agreeing to settle with activists a lot earlier on in the process. To that end, we saw an uptick in campaigns resulting in partial slate victories.” Through the first half of 2023, activists in U.S. campaigns won more than half of their desired board seats through settlements, a 19% increase over the previous year. Meagan explained that “Settling earlier on in the process … avoids the higher costs of running a full contest and allows a dissident and the company to avoid some of the fallout that can occur in a heated public battle for board seats.”