FTI Consulting’s Global Shareholder Activism Map Illustrates the Growth of Activist Investing in Non-U.S. Jurisdictions
February 15 2017 - 7:30AM
FTI Consulting, Inc. (NYSE:FCN) published an update to its
interactive Global Shareholder Activism Map, which shows that
shareholder activism gained momentum and geographic breadth in
2016.
To measure the potential risk in each jurisdiction, FTI
Consulting created an index to track activism threat level by
country and map key activists within each location. The analysis
reveals that 342 activism campaigns took place outside the United
States last year, compared to only 70 non-U.S. activist campaigns
in 2010.
The research shows that Canada, Australia and the United Kingdom
have the highest risk for an increase in activism outside the
United States. These countries have experienced changing economic
factors, including a strong U.S. dollar, undervalued asset prices
and increased global scrutiny of corporate governance
standards.
New markets such as South Korea and Japan felt the effect of
governance changes and increasingly shareholder-friendly
sentiment in 2016 with landmark shareholder activism
campaigns. Investors likely will continue to exert their influence
in this region as they become more comfortable with this
environment.
“The success of shareholder activism in North America continues
to fuel its spread across the globe,” said Steven Balet, a Managing
Director and Head of Corporate Governance and Activist Engagement
at FTI Consulting. “These global shareholder activists are not
necessarily U.S.-based nor do they necessarily conduct their
activism in the U.S. style. They have, however, been increasingly
successful in many jurisdictions across Europe, the UK and
Asia.”
The disruptive threat of activism presents boardrooms around the
globe with fresh impetus to better understand shareholder issues
and concerns in order to prevent activism occurring and to be
better prepared should they be targeted, Mr. Balet added.
Research MethodologyThe Strategic
Communications segment of FTI Consulting conducted secondary
research to map the regulatory environment of 14 critical activist
investor jurisdictions. The Global Shareholder Activism Map
contains activist campaign data as of December 31, 2016, sourced
from Activist Insight. The map examines nearly 4,500 activist
campaigns and excludes campaigns aimed at amending bylaws, as they
are often automatic filings from passive investors.
FTI Consulting developed an index to indicate country-specific
activism threat levels, which encompass current campaign trends,
corporate governance changes and the overall likelihood of future
activism investment. Country insights include summary overviews,
disclosure requirements, shareholder rights and company defense
advantages/disadvantages. FTI Consulting’s Global Shareholder
Activism Map will be updated regularly to reflect the most recent
developments by country and highlight new trends in global activism
investing. Register here for updates.
The Global Shareholder Activism Map, the full report, along with
infographic and other insights on shareholder engagement and
activism, can be accessed here. More insights are also available at
http://www.ftiactivism.com.
About FTI ConsultingFTI Consulting, Inc. is a
global business advisory firm dedicated to helping organizations
manage change, mitigate risk and resolve disputes: financial,
legal, operational, political & regulatory, reputational and
transactional. With more than 4,600 employees located in 29
countries, FTI Consulting professionals work closely with clients
to anticipate, illuminate and overcome complex business challenges
and make the most of opportunities. The Company generated $1.78
billion in revenues during fiscal year 2015. For more information,
visit www.fticonsulting.com and connect with us on Twitter
(@FTIConsulting), Facebook and LinkedIn.
FTI Consulting, Inc.
1101 K Street NW
Washington, DC 20005
+1.202.312.9100
Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com
Media Contact:
Matthew Bashalany
+1.617.897.1545
matthew.bashalany@fticonsulting.com
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