Across the Board
DEI is Winning with Costco, Apple and Levi’s Shareholders
The near-unanimous shareholder votes show two things — large and small investors alike do not want companies’ boards of directors and management to bend to activist shareholders
“Diversity, equity and inclusion (DEI) has been losing with corporate America, with one big exception: the people who actually own the companies. This year, investors at some of America’s biggest companies — Costco, Apple, Levi’s, John Deere, Goldman Sachs and others — have overwhelmingly voted against proposals targeting DEI programs. The proposals include requiring companies to scrap their DEI policies entirely or remove diversity goals from executive pay packages and audit the legal risks of pursuing DEI. Two conservative think tanks, the National Center for Public Policy Research and the National Legal and Policy Center, have brought most of the proposals.” CNN
DoorDash Is on a $5 Billion Buying Spree
The company’s buying spree highlights DoorDash’s ambitions outside of the US, where it already commands about two-thirds of the food-delivery market
“In a matter of five hours, the US delivery firm DoorDash Inc. announced two multibillion-dollar acquisitions that stand to turn what is already the largest food-delivery service in the US into a formidable global player. It agreed to buy London-based delivery Deliveroo Plc for 180 pence per share, or about £2.9 billion ($3.9 billion), and it’s acquiring hospitality tech company SevenRooms Inc. for $1.2 billion…. The delivery industry has been consolidating after a slowdown from pandemic-level highs, leaving room for a dominant player like DoorDash to grow even larger. Also on Tuesday, Uber Technologies Inc. said it’s buying an 85% controlling stake in the Turkish delivery app Trendyol Go. In February, Prosus NV agreed to buy Amsterdam’s Just Eat Takeaway.com NV, while billionaire Marc Lore’s Wonder Group Inc. closed its acquisition of Chicago-based Grubhub earlier this year.” BLOOMBERG
Skechers to be Acquired by 3G Capital
In a trade-war whirlwind, shoemaker Skechers is sold for $9 billion to become a private company
“The deal comes amid growing uncertainty over how U.S. President Donald Trump’s tariffs on foreign goods will affect companies who make their products overseas, particularly in China. Athletic shoe makers have invested heavily in production in Asia…. Skechers says that about two-thirds of its revenue comes from sales outside of the U.S. China accounts for 15% of the company’s revenue… The deal comes at a precarious time with Trump’s ongoing, on-again-off-again tariff announcements. Like many other companies increasingly have done since Trump’s widespread tariff announcements, Skechers did not issue guidance when it released its first quarter earnings in April. Chief Financial Officer John Vandemore told investors that the ‘current environment is simply too dynamic from which to plan results with a reasonable assurance of success.’” AP
Proxy Firms Split on Harley-Davidson Board Shake-Up
Shareholder advisers differ on activist investor’s campaign to remove three board members
“Influential proxy advisory firms recommended divergent paths for Harley-Davidson investors ahead of a shareholder vote that could shape the motorcycle maker’s future. ISS said in a report this week that an activist investor, H Partners, hasn’t made a compelling case to remove three members of Harley’s board, each of whom has served for at least 17 years. They are Chairman Jochen Zeitz, who is also the company’s chief executive, and directors Thomas Linebarger and Sara Levinson. Another firm, Glass Lewis, reached a different conclusion. It said Tuesday that the directors had ‘overseen starkly suboptimal shareholder returns,’ and that removing them from the eight-person board likely wouldn’t create any problems. Proxy adviser Egan-Jones also recommended Tuesday that shareholders withhold votes from the three directors.” WALL STREET JOURNAL
Charles River Settles with Elliott on Board Overhaul
Elliott's Global Head of Engagement Steven Barg will join the board along with three other independent directors who have expertise in the pharmaceutical industry
“Pharmaceutical company Charles River Laboratories has reached a settlement with activist investor Elliott Investment Management to add four new directors to its board and launch a strategic review of the business…. As part of the settlement, Charles River will initiate a comprehensive strategic review of its business to help push the stock price higher, the sources said, noting this might include finding ways to make the business more efficient among other initiatives.” REUTERS
BP Ousts Strategy Chief Amid Profit Plunge and Activist Investor Pressure
Chairman Helge Lund is expected to leave the company in 2026 after announcing in April that he would step down
“After enduring financial struggles to start the year, including a 48% drop in net profit, BP is making some changes, the company announced in its first-quarter earnings call. A significant change for the British supermajor is the ousting of Executive Vice President of Strategy, Sustainability, and Ventures, Giulia Chierchia, who will step down on 1 June and will not be replaced. Her departure comes after the company underwent a strategic reset in February which saw the company cut green spending and pivot back to oil amid investor pressure. BP’s financial struggles have made it a target for activist hedge fund Elliott Investment Management, known for amassing stakes in struggling companies and agitating for changes that could increase market value.” JPT
Ben & Jerry's Cites Investor Peltz's Growing Influence Over Parent Company Unilever
Ben & Jerry's says Unilever threatened to eliminate board over donations to a Palestinian charity
“Ice cream maker Ben & Jerry's said late on Friday that billionaire activist investor Nelson Peltz, who is on its parent company Unilever's, has increased his influence over the consumer goods conglomerate, including on political issues. Unilever and the unit have been locked in a bitter legal dispute since last year over allegations that the parent is muzzling it, hurting its ability to carry out its social mission. The Vermont-based frozen dessert manufacturer made the new claims in response to Unilever's attempts last week to have the case thrown out.” REUTERS
Pritzker at the Center of the Fight Over Harvard
Pressure on Penny Pritzker has simmered at Harvard almost since she joined the school’s governing board in 2018
“The heat is rising on Penny Pritzker, the senior fellow on Harvard’s powerful governing board… On Monday, donor Bill Ackman, the hedge-fund billionaire, Harvard alum and Trump ally, criticized her on CNBC: ‘It’s time for a change in leadership in the board at Harvard.’ Later that day, Education Secretary Linda McMahon piled on in a letter posted to social media, calling her ‘a Democrat operative, who is catastrophic and running the institution in a totally chaotic way.’ As Harvard Corporation’s senior fellow, Pritzker stands at the center of the most consequential battle between a school and the U.S. government in more than half a century…. The White House, citing concerns about campus antisemitism, has frozen billions of dollars in federal funding, targeted Harvard’s tax-exempt status and threatened its ability to enroll international students. Harvard has fought back with a lawsuit, saying the government has violated the school’s constitutional rights and imperiled its academic independence.” WALL STREET JOURNAL
Higher Education Leaders Call for Greater Defense of Board Independence
Lawmakers have introduced legislation that seeks to increase board oversight in processes like academic programming and tenure, as well as a Governor’s ability to appoint board members
“More than 200 college and university presidents, board chairs, sector association leaders, and heads of accrediting agencies have called on higher education leadership to uphold the independence of governing boards and institutional autonomy. In a letter released May 1, the coalition, representing more than 120 institutions, foundations and accrediting agencies, said the independence of governing boards is under growing threat from political pressures. Those include ‘funding tied to ideological compliance and attempts to control core institutional decisions regarding admissions, hiring and mission execution,’ the letter said.” IHE
Corporate Climate Disclosures and Practices
Climate risk and reporting remain a board-level issue for large US companies
“As climate risks intensify, more companies are embedding emissions reduction and climate governance into core strategy. This report analyzes 2021–2024 climate disclosures across the Russell 3000 and S&P 500, highlighting trends in greenhouse gas reporting, target setting, regulatory preparedness, and board oversight. While based in the US, many firms—especially those in the S&P 500—operate globally under multiple regulatory regimes. Key Insights: Most US public companies now disclose their exposure to climate risk—especially in asset-heavy, high-exposure sectors—although not all deem it to be financially material. Despite a US federal shift away from climate regulation, emerging state disclosure laws like California’s Senate Bill (SB) 261 and international mandates such as in the EU will likely reinforce climate risk and reporting as a board-level issue for large US companies...." HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
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