Rob Staley comments in Gryphon Advisors Inc. and FrontLine Advisors Inc.'s inaugural Proxy Season Review report covering in-depth analysis on corporate governance and shareholder activism developments of 2019.

Rob says:

“While activism remains robust in the Canadian market, we are seeing more board-related activist demands settled before a public proxy solicitation campaign by both sides.  Boards are increasingly opting to mitigate perceived risk by negotiating settlements where the activist receives a minority of board seats, and offers a time-limited standstill.  As activists often don’t represent shareholders as a whole, and may have short-term interests inconsistent with the interests of other shareholders, it remains to be seen whether early settlements promote stability or instead provide a platform for further agitation inside the company.”