Investors are continuing their push for board diversity in the 2019 proxy season that was set into motion two years ago. Drawing on the energy from events, such as BlackRock’s letter to CEOs, demanding meaningful change in board composition, more investors are becoming vocal and more definitive about what constitutes boardroom diversity.
Early stage companies tend to be innovative, entrepreneurial and willing to take risks. The founders of these companies often view a corporate Board as the construct that comes in to stall their innovative spirit; the equivalent of your parents accompanying you on your first date.
Activist proposals have long been viewed as something to resist, even fear, but a new strain of thinking has become part of the debate. Boards are now looking at activist themes to inspire their own actions – as both an offense and defense strategy.