Fewer proxy fights progress to advanced stages in 2011

Proxy fight data for 2011 not only suggests a more concessionary approach to activist investors by U.S. companies but also an eagerness to end these situations as quickly as possible. 

Only 22 total proxy fights, 16 of which were for board seats, have gone to an actual vote so far this year. That equals the previous low of 22 going to a vote in 2004 according to FactSet SharkWatch, which began tracking proxy fights in 2001.

Interestingly, not only were there fewer proxy fights going to
a vote, but the number that progressed as far the dissident shareholder distributing definitive proxy materials is also a multi-year low. On a percentage basis, the 32% of proxy fights announced for 2011 meetings that reached this definitive stage was the lowest ever recorded on FactSet SharkWatch.

The data used to compile this article is from the FactSet Corporate Activism database, SharkWatch. 
 
This story was contributed by John Laide, Senior Product Manager.