Meagan Reda Cited in The Deal on How Company and Activist Settlement Considerations Are Evolving

Olshan Shareholder Activism partner Meagan Reda was recently cited in an article in The Deal (subscription required) on the increased settlements that end boardroom battles and how those settlements have become more complex. Whereas past settlements typically focused on securing board seats, they now often involve the creation of new board committees that focus on strategy or operations. Meagan explained that these committees have become a crucial tool to bridge negotiation gaps, especially when the company and the activist are far apart on how many new directors should be installed. For an activist, she said, securing a nominee a seat on a committee dedicated to the investor's core concern can be a way to ensure that its strategic thesis is addressed. Meagan added that a settlement that leads to meaningful improvements shows that a board is responsive and accountable, potentially making it less vulnerable to future activists. Furthermore, settling early can attract highly qualified director candidates who aren’t willing to join a public proxy fight but who are open to being appointed through a more amicable process.