– The majority of top executives across corporate America believe that companies should maintain – or even expand – initiatives to promote DEI, despite the government’s executive orders designed to compel them to do the opposite.
Forbes reported that a new survey conducted by Catalyst, a consultancy focused on creating inclusive workspaces, in conjunction with the NYU School of Law’s Meltzer Center for Diversity, Inclusion and Belonging, found that 83 percent of C-suite leaders and 88 percent of legal leaders believe maintaining or expanding DEI is essential to mitigating legal risk.
Some 77 percent of the executives surveyed said they believe DEI initiatives are positively correlated with improved financial performance, and 81 percent said that a focus on DEI was likely to bolster customer loyalty.
– Pharmaceuticals company Novo Nordisk could face a challenge from an activist hedge fund as Parvus Asset Management has started to build up a stake in the drugmaker, the Financial Times reported (paywall).
The London-based fund, which has previously targeted airline Ryanair and gambling group Flutter Entertainment, reportedly wants to influence the appointment of Novo Nordisk’s next chief executive. Last month, Fruergaard Jørgensen announced that he would step down from the C-suite earlier than expected, though confirmed he would stay in place until a successor is found.
Shares in Novo Nordisk have fallen 50 percent over the past year. A combination of disappointing trial results for its new obesity drug Ozempic and lower than expected sales figures led investors to conclude that it was losing ground to its US rival Eli Lilly in the weight-loss market.
– The SEC has named new directors to two of its key units as chairman Paul Atkins begins to put together new staff to run the market regulator, according to Reuters (paywall).
The agency has appointed Jamie Selway to lead its trading and markets division, effective June 17, and Brian Daly, a lawyer from Akin Gump Strauss Hauer and Feld in New York, to run the investment management division.
Selway is a longtime market structure and investment technology expert and Reuters previously reported he had been tapped for the role. While at Akin, Daly advised private equity, hedge fund and venture capital fund managers, according to the law firm’s website.
– Independent proxy advisory firm Glass Lewis has urged PENN Entertainment shareholders to vote for two board nominees at the gambling company as a boardroom dispute continues to rumble on, according to EGR (paywall).
It comes as part of a wider proxy battle, which has seen PENN push back against a report from another proxy advisor – ISS – recommending shareholders back three directors nominated by activist investor HG Vora Capital Management.
While PENN has supported two candidates – Johnny Hartnett and Carlos Ruisanchez – it strongly opposes the third, former CFO William Clifford. PENN took issue with ISS’s support for Clifford, calling it unrealistic and inconsistent with the company’s long-term strategy.
‘During his time as PENN’s CFO, Clifford advocated against key initiatives that were critical to succeeding in a competitive market,’ the company stated, adding the former CFO expressed ‘antiquated views of a rapidly changing industry’.
PENN’s AGM will take place on June 17.
– Activist investor Elliott Management has issued a set of demands to Sumitomo Realty and Development, vowing to oppose members of the Tokyo-listed builder’s senior management at a shareholder meeting if corporate governance and value-enhancing initiatives are not addressed, Bloomberg reported (paywall).
The move has pushed Sumitomo Realty into seeking to sell a group of office properties in Tokyo for at least ¥100 bn ($700 mn).
In a letter dated 8 June, Elliott outlined four key areas of concern – poor shareholder returns, excessive cross-shareholdings, declining capital efficiency and subpar governance – and urged Sumitomo Realty to implement ‘tangible reforms’ like increasing its shareholder payout and setting a credible return target.
Bloomberg first reported in March that Elliott had amassed a stake in the builder, one of Japan’s largest.
– UK bus and rail company FirstGroup has announced it will no longer have an ‘employee director’ on its board, despite pioneering the practice since the 1980s, The Times reported (paywall).
The Aberdeen-based company said Ant Green, a 55-year-old bus driver, would not be standing for re-election to the board at its AGM and the role will retire with him.
He will be the last in the line of employee directors at FirstGroup, which has had worker representatives on its board since the company was founded in 1989.
In place of an employee director, the group will have a designated non-executive director to ensure that the voice of the workforce is heard in the boardroom.
Laurie Havelock
Laurie has been with IR Impact for over a decade, becoming editor in 2023 after roles as a reporter and research editor. He moderates events and serves as MC for global awards. Previously, he was acting business editor at the i newspaper and deputy...
