SquareWell Partners – a Europe-based shareholder advisory boutique for high profile “special situations” – recently published the latest edition of its survey on institutional investors’ views on shareholder activism (available for download).

This year’s survey includes responses from 30+ global investors – representing $35 trillion in assets under management. SquareWell asked how these institutions view activism, what drives their support for activist campaigns, and how boards can engage more effectively to avoid escalation.

Some highlights:

– Most investors (77%) view activism as a useful force for catalyzing change and accountability.

– A key concern (65%) is that activists may oversimplify complex businesses or adopt overly short-term views and cause disruption.

– Board-related activism tied to governance and management change is most supported (71%), while M&A and balance sheet activism receive minimal backing (3%).

– Nearly half of investors are open to engaging before a campaign is public; many also consult peers to gauge broader sentiment.

If you want to stay in the know about shareholder activism – and what your company or clients can do to stay out of the crosshairs – make sure to also check out the “Understanding Activism with John and J.T.” podcast. John and J.T. Ho have been covering all sorts of interesting topics with engaging guests. The episodes are all posted on TheCorporateCounsel.net and DealLawyers.com!

– Liz Dunshee