The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Mon, 11 May 2026 11:32:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Should Boards Be Wary of Informal Settlements With Shareholder Activists? – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Should Boards Be Wary of Informal Settlements With Shareholder Activists? https://corpgov.law.harvard.edu/2026/04/14/should-boards-be-wary-of-informal-settlements-with-shareholder-activists/?utm_source=rss&utm_medium=rss&utm_campaign=should-boards-be-wary-of-informal-settlements-with-shareholder-activists https://corpgov.law.harvard.edu/2026/04/14/should-boards-be-wary-of-informal-settlements-with-shareholder-activists/#respond Tue, 14 Apr 2026 11:30:26 +0000 https://corpgov.law.harvard.edu/?p=180233?d=20260413152905EDT Posted by Elizabeth R. Gonzalez-Sussman, Ron S. Berenblat, and Dara J. Ferguson, Skadden, Arps, Slate, Meagher & Flom LLP, on Tuesday, April 14, 2026
Editor's Note:

Elizabeth R. Gonzalez-Sussman is a Partner, Ron S. Berenblat is of Counsel, and Dara J. Ferguson is an Associate at Skadden, Arps, Slate, Meagher & Flom LLP. This post is based on their Skadden memorandum.

Key Points

  • Informal settlements between activist investors and their corporate targets can be a means to resolving activist situations quickly.
  • But informal agreements generally only work where the company and the activist can find enough alignment on the strategic priorities for the company, and the company can trust the activist to abide by their informal deal.
  • Informal settlements also work best where a board and management have prepared for the possibility of an activist campaign, regularly engage with their other shareholders, have undertaken a rigorous self-assessment and have proactively considered various strategic options so the company is positioned to quickly evaluate the activist’s demands on their merits.

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