Why is Europe such an activism hotbed?
In this podcast episode, Kieran Poole is joined by Tom Matthews and Sonica Tolani from White & Case, along with Rebecca Sherratt from Insightia, to discuss Corporate Governance in Europe 2023. Tom leads the firm's European shareholder activism practice, while Sonica specializes in public company M&A, ECM, and shareholder activism. The episode highlights key findings, including the focus on emissions reporting, the impact of the cost-of-living crisis on investor revolts, and the shift in activist intentions towards demanding the sale of undervalued companies. The conversation encourages listeners to join the discussion using the hashtag #InsightiaEurope23 on Twitter and LinkedIn.
Guests
More about the podcast
Kieran Poole is joined by White & Case's Tom Matthews and Sonica Tolani as well as Insightia's Rebecca Sherratt to discuss Corporate Governance in Europe 2023.
Tom heads up the firm’s European shareholder activism practice, while Sonica is a specialist in public company M&A, ECM, and shareholder activism.
Among the top findings:
Emissions reporting takes centrestage: CSRD has ushered in a new era of ESG accountability, mandating European issuers with upwards of 250 employees annually report on sustainability policies and targets, including their Scope 1, 2, and 3 emissions, starting in 2025.
The cost-of-living crisis drives investor revolts: FTSE 350 executive pay hit record highs in 2022, with total CEO realized pay averaging 3.03 million pounds ($3.76m), compared to 2.1 million and 2.6 million pounds in 2020 and 2021, respectively.
Activists push for sales amid depressed stock valuations: Activist intentions have shifted from blocking deals to demanding the sale of long undervalued companies, at a time when interest rates and inflation are limiting other growth options. Fifteen companies faced demands for a sale and/or acquisition of a third-party last year, an increase from 13 in 2021, while the number of companies facing opposition to M&A transactions fell to 15 in 2022, from 29 in 2021.
