Breakingviews - CEOs, not proxy cards, are what fuel activists

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Investors have a new way to vote for U.S. company directors. Some boards may be more exposed to activists than others. But gadflies' gripes will only resonate if CEOs aren’t doing their jobs, says TheRealLSL.

Previously when an activist proposed alternative directors for election at the company’s shareholder meeting, they had to send a separate voting card to investors with only their candidates on it. New rulesby the U.S. Securities and Exchange Commission say companies must include dissident nominees on the same voting card as their own. Shareholders no longer have to choose between one group or another.

Even the most obstreperous activists have struggled with campaigns that had bark but little bite. Carl Icahn earlier this year failed in his bid to shake up fast food chain McDonald’s

 

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