Governance Insights 2024 A Review of Shareholder Activism in Canada for 2024: Key Decisions and Trends to Watch for in 2025
ZEROED IN: CAMPAIGN FOCUS REMAINS CONSISTENT
The variety of shareholder demands has remained consistent over the past year and a half. Notably, the proportion of demands focussed on M&A and ESG matters has increased during the same period, as seen in Figure 3.
Figure 3: P ublic Demands to Canadian Issuers Proportionally by Type of Demand (2017 – 2024/11/30)
100%
90%
80%
70%
60%
Remuneration ESG M&A Business Strategy
50%
40%
30%
Board Related Activism Balance Sheet Activism
20%
10%
0%
2017
2018
2019
2020
2021
2022
2023
2024-11-30
TWO RESOUNDING VICTORIES FOR ACTIVISTS: THE GILDAN CAMPAIGN FOR STATUS QUO AND THE DYE & DURHAM CONTEST FOR CHANGE 2024 witnessed two high profile campaigns in which the activist claimed a resounding win. In the case of Montreal-headquartered apparel manufacturer Gildan Activewear Inc., following the unexpected departure of the company's CEO amid tensions with the Gildan board, activist investor Browning West commenced a campaign that culminated in the replacement of the entire incumbent board and the reinstatement of the CEO. This campaign saw a chorus of shareholders rallying around Browning West’s cause, amplifying the pressure on the incumbent board. Similarly, later in 2024, the nine-month battle between the Toronto-based legal technology company Dye & Durham Limited and activist investor Engine Capital LP, which aired differences over the company's strategic direction, came to a close with Engine Capital garnering shareholder approval for its slate of directors, prompting the replacement of the entire incumbent board and resignation of the CEO.
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