Most Proxy Fights End in Settlements

Most proxy fights aren’t clear-cut, zero-sum battles between companies and shareholders, like the one going at Heinz, according to the Corporate Governance Blog. In fact, the majority of them — 61 percent — end in a settlement.
In many settlements, management is able to “save face,” by not appearing as an outright loser in a shareholder vote. And shareholders are usually able to obtain concessions – for example, winning board seats. “The dissidents often are able to get everything they asked for and appear reasonable in the bargain, which can only enhance their options in future proxy fight negotiations,” the blog concluded.