Activist US shareholders face squeeze

2020 ◽  
Keyword(s):  
Racial Diversity ◽  
Shareholder Activism ◽  
Content Type ◽  
Popular Pressure

Significance The SEC had wanted to reform its proxy system, which is decades old, for years. President Donald Trump's administration has pressed the SEC to restrict the scope for shareholder activism to promote environmental, social and governance (ESG) goals. Impacts Popular pressure on funds in favour of sustainable investing will grow in coming years. Shareholder pressure for companies to perform better on ESG goals, incluidng gender and racial diversity, will increase. The next administration might be wary of increasing oversight on COVID-19-hit US corporates.

Shareholder activism impact on efficiency in Brazil

2019 ◽  
Vol 19 (1) ◽  
pp. 141-157 ◽  
Author(s):  
Paula Guimaraes ◽  
Ricardo P.C. Leal ◽  
Peter Wanke ◽  
Matthew Morey
Keyword(s):  
Shareholder Activism ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Two Stage ◽  
Content Type ◽  
Financial Characteristics ◽  
Long Term Impact ◽  
A Company

Purpose This paper aims to investigate the long-term impact of shareholder activism on Brazilian listed companies. Design/methodology/approach This study uses a sample of 194 companies in 2010, 2012 and 2014 and a two-stage data envelopment analysis to generate an efficiency score based on corporate governance, ownership structure and financial characteristics of companies. In the second stage, the study applies a bootstrap truncated regression to identify whether there is a relationship between the efficiency scores and a company-level activism index. Findings The results show a negative correlation between the efficiency scores and the activism index, suggesting that activist shareholders tend to target less efficient companies. A time analysis over the period 2010-2014 does not offer evidence of impacts of activism on changes of the efficiency scores. Practical implications Activist shareholders target less efficient companies. Shareholder activism increased after regulation that facilitated shareholder voting and required greater company transparency was introduced. Originality/value The two-stage nature of the procedure used in the analysis ascertains that this result is not spurious, assuring data separability between productive resources and contextual variables. This study contributes to the scarce literature on activism in emerging markets.

Opt-out stories: women’s decisions to leave corporate leadership

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robin Ayers Frkal ◽  
Noel Criscione-Naylor
Keyword(s):  
Racial Diversity ◽  
Small Sample ◽  
Corporate Leadership ◽  
Structured Interviews ◽  
Leadership Positions ◽  
Content Type ◽  
Authentic Self ◽  
Social Media Networks ◽  
Opt Out ◽  
Decisions To Leave

Purpose The purpose of this paper is to explore how the challenges to women’s authentic leadership identities contribute to their decisions to abandon leadership positions mid-career. It examines the critical career moments and underlying themes behind these women’s decisions to leave. Design/methodology/approach This paper is based on semi-structured interviews (n = 9) with women between the ages of 32-53 who had opted-out of mid-level corporate leadership positions. Findings The study found that work–life balance was not the primary factor in women’s decisions to leave. Instead, the women in the study reflected on their inability to be themselves and contribute perceived value to the organization as triggering their decisions to leave. Research limitations/implications There are limitations in using a small sample of women selected through the researchers’ social media networks resulting in limited cultural and racial diversity. Practical implications Misconceptions about women’s decisions to leave corporate leadership mid-career misleads human resource (HR) practices and initiatives focused on retaining female talent. Organizations need to recognize and reshape the organizational environment to support women to be their authentic self and make the value of their contributions more transparent. Originality/value The paper is original in that it examines opt-out from the lens of women’s leadership identities in corporate contexts. There are limited studies that have examined the connections between identity and women’s career decisions beyond work–ife balance. It provides practical value to HR practitioners and organizations focused on retaining female talent.

Water difficulties set to worsen in ASEAN

2016 ◽  
Keyword(s):  
Water Management ◽  
Water Resource Management ◽  
Water Storage ◽  
Economic Losses ◽  
South East Asia ◽  
Water Politics ◽  
Content Type ◽  
Cross Border ◽  
Popular Pressure ◽  
Asean Countries

Subject Water management in South-east Asia. Significance ASEAN countries face growing demands for better water management, following the region's worst drought in decades quickly followed by flooding. Without increased investment in water storage and flood mitigation systems, economic losses will rise, but most governments give the sector a low budget priority. Impacts The contentiousness of water politics in the Mekong sub-region could make reaching cross-border solutions difficult. Switching to crops that need less water may change land use and reshape national agriculture sectors. Popular pressure on governments will rise for water resource management improvements.

US shipping law is unlikely to ease despite hurricanes

2017 ◽  
Keyword(s):  
Puerto Rico ◽  
Disaster Response ◽  
First Line ◽  
Content Type ◽  
Slow Pace ◽  
The Us ◽  
Popular Pressure ◽  
Customs And Border Protection ◽  
Infrastructure Repair

Significance US Customs and Border Protection (CBP) had earlier denied a request from Puerto Rico to waive certain provisions of the Jones Act which would allow vessels of any registry to ship cargo from the US mainland to Puerto Rico. However, CBP eventually granted the waiver under significant political and popular pressure due to the devastation of Hurricane Maria and slow pace of disaster response. Impacts Infrastructure repair will have a greater impact on Puerto Rico’s recovery than the duration of the Jones Act waiver. Labour maritime unions will lobby senior Democrats to block any retrenchment of mariner protections. Washington’s ‘America First’ line on trade will see it side with US shipbuilders against increasing foreign-built vessels for cabotage.

Alphabet shareholders take #MeToo issues to C-suite

2019 ◽  
Keyword(s):  
Shareholder Activism ◽  
Content Type

Headline INTERNATIONAL: Shareholder activism can elevate #MeToo

Peru raps Pluspetrol following environmental protests

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Business Community ◽  
Extractive Industries ◽  
Andean Region ◽  
Breach Of Contract ◽  
Content Type ◽  
Popular Pressure ◽  
The Government

Significance The government has ordered Pluspetrol, which owns and operates key oil and gas concessions, to abandon its exploratory activities in the central jungle region, following protests during which one student was killed and at least 32 people injured. The conflict typifies growing organised resistance throughout the Andean region by indigenous and other groups to the presence of extractive industries. Impacts Pluspetrol may lodge a complaint against Peru for breach of contract. Other communities may take this as their cue to lodge protests against extractive industries. The government will be criticised by the business community for having apparently succumbed to popular pressure.

Samsung phablet fire fiasco will hurt South Korea

2016 ◽  
Keyword(s):  
Corporate Governance ◽  
South Korea ◽  
Shareholder Activism ◽  
Content Type ◽  
Replacement Model ◽  
Lame Duck

Significance This followed Samsung's decision to axe its initially much-praised Galaxy Note 7 'phablet' smartphone, launched only in August, after explosions (whose precise cause remains undetermined) affected not only the first handsets but also a supposedly safe replacement model, swiftly introduced after the initial problems. A worldwide return and refund or swap programme began on October 13. Impacts In so highly competitive a sector, Samsung's finances and reputation will take time to recover. Longstanding corporate governance concerns will prompt renewed shareholder activism. The matter is severe enough to count as another 'crisis' for Park's lame duck administration.

Shareholder activism may cut US corporate bonuses

2015 ◽  
Keyword(s):  
Stock Market ◽  
Executive Compensation ◽  
Shareholder Activism ◽  
Content Type ◽  
Dividend Payments ◽  
Investor Activism

Significance A recent report indicates that there has been an increase in shareholder activism in the first third of 2015. For example, activists have become the largest shareholder in Rolls-Royce, nearly prevented a merger of two of Samsung's affiliates and pressed for changes in executive compensation. Impacts Increased investor activism is likely to lead to greater share buybacks or dividend payments. However, many US stocks are likely already overvalued through repeated past buybacks. This risks a politically damaging (for the Democratic presidential nominee) stock market correction in the next twelve months.

Donor support will be key to Benin’s recovery

2017 ◽  
Keyword(s):  
Government Reform ◽  
Policy Changes ◽  
Regional Trade ◽  
Content Type ◽  
Business Interests ◽  
Political Interests ◽  
Donor Support ◽  
Fiscal Reforms ◽  
Popular Pressure ◽  
The Government

Subject Benin's development challenges. Significance Nine months after the business tycoon Patrice Talon became president of Benin, his government is pursuing a development programme costing 9 trillion CFA francs (14.4 billion dollars). Much of this five-year “Benin Revealed” programme announced last month must be funded through commercial investment. Talon’s government faces significant economic challenges as fiscal reforms in Nigeria have weakened Cotonou’s position as a regional trade gateway. Impacts Popular pressure will grow on parliamentarians to declare their assets, following the president’s lead in November. Donor demanded anti-corruption measures will face resistance from entrenched business and political interests. The government will press Nigeria for a phased introduction of trade policy changes. Stalling government reform could prompt deeper media inquiries into Talon’s business interests.

Clashes among federal powers will intensify in Brazil

2021 ◽  
Keyword(s):  
Supreme Court ◽  
Short Term ◽  
Content Type ◽  
Lower House ◽  
The Supreme Court ◽  
Popular Pressure ◽  
New Evidence

Significance Bolsonaro has been increasing his attacks on senators leading a Senate-led inquiry into his administration’s handling of COVID-19 and on members of the Supreme Court and the TSE, due to mounting opposition to Bolsonaro’s plan to reinstate paper ballots in next year’s election. Impacts New evidence by the Senate inquiry may increase popular pressure for the Lower House to launch an impeachment process. Bolsonaro will continue to increase his support for and reliance on parties of the centre-right and right in Congress to block impeachment. Bolsonaro will sustain allegations of fraud in 2018 and potential fraud in 2022 as a diversionary tactic in the short term.

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