Recent Proxy Battles Offer Insights Into How Comms Can Get Out In Front Of Activist Investor Drama
From CommPRO:
This article serves as a masterclass in strategic communication during high-stakes corporate conflicts, particularly focusing on proxy battles involving major companies like Disney. It adeptly highlights how Disney, facing a contentious battle with activist investor Nelson Peltz, utilized an integrated communications approach involving op-eds and high-profile endorsements to sway public opinion and shareholder votes. The article stresses the importance of being proactive rather than reactive, showcasing Disney's deployment of a multifaceted media strategy to maintain control of its narrative.
For communicators, this piece is essential reading due to its practical insights into scenario planning before crises hit and the necessity of having a dynamic, cross-departmental strategy that extends beyond traditional PR. The interview with Ted Bikhahn from Vested illuminates how companies can fortify their defenses through anticipatory planning and robust response mechanisms, thereby turning potential vulnerabilities into strengths.
Reading this article encourages communicators to think critically about their own readiness for such challenges and the importance of a cohesive narrative across all media platforms. It underscores the strategic value of preparation and the power of controlling the narrative before others define it for you, making it a crucial resource for communicators in all fields.
Recent, Disney prevailed over activist investor Nelson Peltz’s Trian hedge fund in his widely publicized fight for two seats on the company’s board of directors. The contentious proxy battle played out in op-eds and celebrity endorsements for both Peltz and Disney CEO Bob Iger, and via paid media pieces programmatically fed to Disney shareholders and fans alike, ensuring that even those without a financial stake were aware of Peltz’s crusade.
The Disney proxy battle was a high-profile example of a larger trend in activist investing— Macy’s finds itself closer to a deal with investor Arkhouse Management after it put in a bid with Brigade Capital to take the retailer private, while Norfolk Southern is currently battling against activist investor Ancora’s push to add eight directors to its board and oust Alan Shaw as CEO.
Each of these proxy battles contains lessons for communicators. We caught up with Ted Bikhahn, managing director at financial PR agency Vested, to learn how communicators who find themselves in a similar situation can strategize from a proactive place.